Wolfcamp Shale layers could put play among most profitable
By Collin Eaton || Houston Chronicle
June 11, 2014
http://fuelfix.com/blog/2014/06/11/wolfcamp-shale-layers-could-put-play-among-most-profitable/
Later – Buzz
Brian – great catch. Here’s link to Arabella News Release:
I am new to this group. Does anyone have knowledge about this location, E/2 of Section 28, Block C-1, Public School Land Survey? We have mineral rights and have not heard of any activity in the area.
Buzz, bringing his A game!!! Many thanks! Not even their company presentation showed it.
Does anyone have any suggestions as to what to do if a production company has 65 days after the last day of a production month to pay royalties but the check doesn’t arrive even at 71 days?
Have tried unsuccessfully this morning to locate the Emily Bell well. Anyone know this please?
More good news announced this morning…
On May 11, 2014, Arabella Exploration completed fracing the Emily Bell #1H and the well began flowing back on May 19, 2014. The well began initial production on June 2, 2014, and reached a peak initial production rate of over 1,100 BOE/Day. Since its peak production, the well has averaged over 600 BOE/Day for the first twelve days without the assistance of any artificial lift and with only approximately 9% of the frac water load recovered.
Stephen – Emily Bell #1H, PSL Block C6 Section 3, A-5773, 13.5 miles SE of Pecos.
Glen, look at the date of the check and postmark when it does arrive. If they are late, do a demand letter and ask for the interest they owe.
It’s been a year since we were last approached by a company wanting to lease out land. So for the last year I have not been keeping up with the leasing rates. Does anyone know the current leasing rate for Section 2, Block 55, Township 7, T&P RR Co. and for Section 14, Block 2, PSL Survey. We have been approached by Clayton Williams but I haven’t returned the call yet. I wanted to be current with my knowledge of what’s going on in Reeves County. Thank you!
We have interests very near to yours - Block 55 Township 7 Section 16. I asked for info about this area maybe a year or so ago but got no response. So either there isn’t much leasing going on around us or the owners aren’t part of this group. I’d be interested in area lease rates too!
Well, I’ve been waiting for others to chime in that know more than I do about that particular area. I would say you could expect anything from $1,500 up to $3,500, but I, personally, wouldn’t do anything less than $2,000, 1/4 interest and a three-year term with no extensions, unless I was desperate for the money.
I can see why we might expect such lease rates elsewhere in the county but there is no activity within several miles of us. Is this the general going rate now anywhere in Reeves County? Chesapeake took out some permits next to us years ago but I don’t think they ever drilled. Clayton-Williams has a couple of wells several sections to the east. But mostly our area looks pretty dead on the maps. I’d love to know what they offer Scotsy!
Thank you, Buzz. I’d read the report and seen the map a couple of days ago but was unsure just where our property fell. Earlier maps - and recent maps from various companies - had seemed to indicate we were right on the edge of, or outside of, possible plays. But this map seems to indicate we would be within the Wolfcamp and Wolfbone, if I’m locating our property correctly. Much more hopeful! Thank you again!
Should have added that as far as I know, we haven’t had any interest in leasing. But our acreage is held in trust by a bank and they might not tell us until things got farther along. If our bank says that we’ve been contacted, I’ll let you know the offer.
http://cimarex.investorroom.com/presentations
Please go to page 10 on their most recent Presentation in the Investor section, where the grey shaded area shows a very rough “fairway”.
Liz – see Figure 3… 82-page Analyst Report: “The “New” Horizontal Permian Basin”, January 27, 2014, by Howard Weil Research
http://www.howardweil.com/docs/Reports/OtherReports/PermianBasin01-27-14.pdf
This is far and away the best depiction of the various ‘fairways’ in both the Midland and Delaware sub-basins within the larger Permian Basin.
Notice the source of Figure 3 is Howard Weil and DI Desktop [http://info.drillinginfo.com/products/di-desktop/], the latter being a service of Drillinginfo, a company whose business it is to provide intelligence on what everybody is doing in the O&G exploration business, i.e., not company specific where one may tend to shade-in the fairway around their own leases and not pay the same degree of attention on the surrounding boundary area, all IMO, of course.
Later – Buzz
Glad to hear from you, Stephen, appreciate your knowledge on that area. Would it be possible to tell me where the southwestern part of that fairway is by any chance, or point me to a map? Thanks! Linton
Thanks bunches, Stephen!
Liz, we have 58 acres in Section 8 immediately northwest of you. We are going through the second leasing cycle. First leased by Chesapeake in 2005, picked up and renewed by Petrohawk (now BHP Billiton) near 3 years ago. We are waiting to see if BHP Billiton sends us the 4th/5th year check near the end of July. Ours is State Classified lands, so we have to split the bonus with the State. I would expect a new lease bonus in our area to be around $500/acre. BHP has one shut-in Phantom (Wolfcamp) horizontal oil well to the south in Section 32, API 389-32880, RRC lease #42841. No data on the production potential yet.