We have some horizontal wells getting going on our sections. If the operator drills additional laterals out of the same pads in the future should we expect to see new permits and a new well name/number? Or do additional laterals out of an existing pad not require that?
I’m just curious basically, wondering whether we would see a new permit pop up or our production numbers just suddenly spike until they level back out.
Yes, additional laterals require different permits. Actually, the science of drilling multiple laterals out of the same borehole is really not developed well, and they move the rig around on the pad and drill different vertical boreholes. That has led to the development of “walking rigs” that can shuffle around the pad site.
Reply to Ann Whitchurch,
From what I have read about is that CWEI is a little ahead of everyone else in trying and developing new techniques.
They may have drilled the laterals to the take point and then pulverized the area about the take point before micro fracturing along the laterals.
Also, their techniques seem to involve a lot of good field work in assessing the actual and physical structure of the area they are drilling.
i had a minor in geology in college a million years ahem it would be very fun to talk to someone who actually is doing this work BUT I think we won’t find out for a good while yet, because folks do have to hold some cards close to the chest to stay in the game.
But I really wish I could be a fly on the wall.
Lynn, your explanation makes sense. Guess I’m glad CWEI is still experimenting before they drill my minerals ;>)
Drilling has started in E/2 of Section 28 , block C-1 Tiger 28 Drilling
I am getting to hate spell check changing my words.
a million years ago, not ahem
PERMIAN BECOMING LARGEST US TIGHT OIL PLAY
~~ Tight oil production, spending in the area may surpass Eagle Ford, Bakken
[http://www.ogfj.com/articles/print/volume-11/issue-5/features/permi...](http://www.ogfj.com/articles/print/volume-11/issue-5/features/permian-becoming-largest-us-tight-oil-play.html)
Later – Buzz
BHP has notified us that they will be excersizing the 2yr option on our parcels in Blk 56, sec 29 & 30. Still waiting for the check, but looks like it will happen. Talked to a friend in the business yesterday - curious why they would take a 2yr option unless they intended to drill in the next 2 yrs. He said that one reason is that they can claim the reserves on their financials even if they don’t drill. Otherwise, doesn’t seem to make sense to me. So, I suppose the good news is that they believe there are enough reserves to make the lease bonus worth it.
Interesting comment re BHP from Richard below. I have a request. It was my folks and my intention to get to Pecos this year to change the mineral rights from my mother’s name into the family trust. Recently my dad has begun to fail…so I know that some of you may be lawyers or know of resources that could help as we are in CA and Texas law is different. If you can help, please email me privately. THANK YOU!
I posted this in Upton County group, but it seems to be less active, any help is appreciated.
My uncle has minerals near McCamey. Is there any leasing in the area? If so, who is active and what is a reasonable bonus? He says he has been contacted, but has nothing in writing. He can’t remember who contacted him.
Thanks
Dj
at James Fredrick re block 13. We have recieved $3k per acre for our section 221 and are now negotiating $3500 per acre for our section 64. With what’s going on with Clayton Williams in this block, I see no reason that we might get even more.
concerning BHP. per the comment below (RMH), yes the big guys do use acreage to inflate their stock price but I will say I’ve been visiting with several in the know and BHP is in development mode. They also seem to wait till the last freakin second to send out your option check.
WoodMac: Wolfcamp spending could surpass that of Bakken by 2017
y OGJ editors
7/29/2014
http://www.ogj.com/articles/2014/07/woodmac-wolfcamp-spending-could…
HOUSTON, July 29–Activity in the Wolfcamp shale is expanding and, by as early as 2017, could overtake the Bakken in tight oil spending, according to analysis on the West Texas-New Mexico play from Wood Mackenzie. Wolfcamp capital expenditures are expected to eclipse $12 billion during this year as rigs ramp up, ranking the Wolfcamp third behind the Bakken and Eagle Ford. That total is equal to about 80% of what will be spent in the Bakken this year. Crude and condensate production from the play is expected to average 200,000 b/d during the year and reach 700,000 b/d by the end of the decade. WoodMac notes that the Wolfcamp is still in its early development phase with less than 10% of total capital spent thus far. The firm increased the play’s capex forecast for 2015 by more than $4.3 billion to $13.9 billion to account for an influx of new entrants with capital. The Wolfcamp is now projected to generate $30 billion in remaining value. Serving as a hub of activity has been the Midland Basin, where an increase in acreage value is being facilitated through advancements in stacked pay development. The Midland outpaces the emerging Delaware Basin because of higher oil cuts, lower well costs, and better supporting infrastructure, WoodMac says, adding that it expects the basin to drive production for the next 2 decades with more than 40,000 remaining locations. However, Benjamin Shattuck, WoodMac upstream analyst, says stakeholders should be cautiously optimistic, “While we have seen performance improve across all benches of the Wolfcamp, we are still waiting for an operator to effectively develop multiple benches over a sizeable acreage position.” WoodMac adds that stacked pay potential has “stoked the flames” of the merger and acquisition market in the Wolfcamp, where the deal market had been dominated by operators making bolt-on acquisitions to grow out positions in established areas. Later – Buzz
Mentioned by some is a 3500 foot column of oil bearing strata across much of the Delaware Basin.
I have not had much luck in finding well logs posted on the RRC from current wells. So, I do not have any means of independently verifying claims of 3500 feet of total thickness of all oil bearing strata.
This is an area that is in a boom. The regulatory agencies are swamped, the companies are busy drilling, information delayed is information not so easily available to the competition, so things right now are changing fast and the reporting is way behind.
ATTENTION! FYI, per RigData’s w/e 8/1 report, Anadarko, although recently active in Reeves running a single rig, suddenly has four (4) rigs running in the Orla area: 1.1 miles SE; 8.5 SE; 17.2 SE and 11.7 SW.
Also, beginning last week – and just as suddenly – BHP has five (5) rigs running in the Orla area: (one a 20,000’ PTD vertical) – 1.6 miles SW; 2.1 SW; 3.0 SE; 4.9 NW and 6.0 NW.
Still, the most active area in Reeves remains south of I-20 and S/SE of Pecos.
W/e 8/1 RigData reports 54 active rigs searching for oil/gas in Reeves (not counting 4 ‘assigned’ rigs active elsewhere and one drilling a disposal well).
Later – Buzz
We just got the 2 year extension check from BHP (a month early before the lease was up). Block 4 Section 64
Energen Corporation – Press Release
[http://ir.energen.com/phoenix.zhtml?c=94826&p=irol-newsArticle&...](http://ir.energen.com/phoenix.zhtml?c=94826&p=irol-newsArticle&ID=1953240&highlight=)
[Note: if you read the entire P/R you’ll find Energen is now emphasizing other prospects more than Reeves.]
Wolfcamp Wells in Ward, Howard and Martin Counties Headline Energen’s Latest Round of Permian Basin Exploratory Results
7-30-14
{excerpt}
Energen’s latest “east side” [meaning east of the Pecos River] well in the Delaware Basin tested the B bench of the Wolfcamp in Ward County and generated top-tier rates. The University 16-17 #1H generated a peak 24-hour IP (3-stream) of 1,896 boepd (78% oil, 11% NGL and 11% gas) and a peak 30-day average rate of 1,081 boepd (74% oil, 14% NGL, and 12% gas).
In Reeves County, Energen’s latest Wolfcamp B test produced at lower rates than the company’s other Reeves County Wolfcamp wells, including the near-by E. J. Brady well. Company engineers and geologists continue to monitor and analyze the performance of the Enterprise C19-5 #1H but think the lateral may not have been optimally landed. The Enterprise well generated a peak 24-hour IP (3-stream) of 634 boepd (30% oil, 26% NGL, and 44% gas) and a peak 20-day average rate of 553 boepd (24% oil, 28% NGL, and 48% gas).
Energen currently is completing its first Wolfcamp C well in Reeves County; three other Reeves County wells targeting the Wolfcamp A and B benches are drilling or flowing back.
The company plans to test a second C-bench well in Reeves County later in the year; Energen also plans to test longer lateral lengths of 7,500 feet in the Delaware Basin with two wells to be drilled this year in Ward County.
Energen’s 2014 Delaware Basin Wolfcamp drilling plans now include a total of 15 gross (14 net) wells: five Wolfcamp A wells, six Wolfcamp B wells, two Wolfcamp C wells and two to be determined. Later – Buzz
Permian Basin production heats up
E&P Magazine || Staff Report
August 1, 2014
http://www.epmag.com/item/Permian-Basin-production-heats-up_136426
Improved technology and favorable oil prices drive the industry to continue to unlock the play’s unconventional resources.
The outlook for the Permian Basin’s unconventional region compares favorably to that of the prolific Bakken and for good reason: “The Midland Basin/Wolfcamp-Cline is similar to the Bakken in terms of gross thickness in its shale, which means more resources,” Darrel Koo, senior associate, energy research at ITG Inc., told attendees at Hart Energy’s recent DUG Permian conference in Fort Worth, Texas. The industry could see up to 1.8 MMbbl/d of oil production growth from the Permian by 2025, Koo continued, with a best-case estimate of 3.2 MMbbl/d of oil production by 2025.
A long-time oil-producing basin, the Permian’s unconventional region is attracting fresh interest from major companies like Apache Corp. [more emphasis currently in the Midland Basin], which is focusing on the play as one of its four core areas of production. “The Permian’s not a one-trick pony,” said John Christmann, Apache’s executive vice president and COO, during DUG Permian. “We have more formations and multiple basins to continue to produce. The nice thing about this basin is everything is stacked, which creates multiple plays and multiple targets in every net acre you own.”
`````
Permian Basin leads domestic market resurgence
~~ Stacked pays rival unconventional plays for activity ramp-up.
By Richard Mason, Chief Technical Director || Hart Energy
May 19, 2014
http://www.ugcenter.com/Permian-Basin/Basin-Update-Permian-Leads-Do…
Later – Buzz
As The Permian Attracts More Spending, Production Expectations Rise
Frank Nieto || Hart Energy
June 4, 2014
http://www.ugcenter.com/Permian-Basin/As-Permian-Attracts-Spending-…
FORT WORTH, Texas – When evaluating oil plays in the Lower 48 each one needs to be measured a little bit differently, according to Ben Shattuck, upstream analyst at Wood Mackenzie. “The Permian Basin is a shining example of that,” he said.
Later – Buzz
Has anyone had any experiences with doing a SWD?
Mike