OK, well I hope they notify me as well.
Mark, lease expired last August. AB, 2395 BLK C-8 SEC 6PSL OUT W/2
Thanks, Mark and Clint! Linton
RRC showing Silverback as operator on about 30 wells in Reeves Co for month of November 2014. Strange thing is that I communicated with Silverback this morning and was told their effective date is January 1, 2015. Oh well, just as long as royalty check keeps coming.
Had our first HZ well drilled last September/October by Oxy in Sect.258 Blk 13. Still have no clue what the results are. Frustrating being out of the loopā¦
My comments are from a combination of personal opinion and information from operators and buyers in the area. I believe that Reeves County is a great oil location and will always be an active county. The one problem with Reeves is the expense to drill the Wolfbone and deeper profitable formations. Horizontals are very expensive and the āfracā war is directly going to effect Reeves, Ward, Culberson and surrounding counties. i think companies will continue to lease with the understanding that oil prices will go up at some point and they will be in the right place to drill when it is economically beneficial. I think they will try and hedge their bets with longer leases and longer extensions. The other thing which may not be a bad thing is that the large major operators who can afford to ride this out will probably get the majority of the acreage. I think most of us would rather have Concho or Anadarko or Cimerex who understands the technology and has spent the money to learn the best drilling practices to maximize our reservoirs when our acreage is drilled.
Is this the same Silverback Operating?
http://www.encapinvestments.com/news/experienced-management-team-foā¦
http://www.silverbackexp.com/news/silverback-dedicates-production-eā¦
Mike ā āyesāā¦ out of San Antonio. Later ā Buzz
Mark, is there any interest SW of Toyah?
Mark,
I sent Linton your email address.
Clint Liles
read your comment where you mentioned there is still good activity in Reeves. We have a lease with CWEI in Block 13 Sect. 219 that expires July 2015. One of their landmen contacted me by phone a Week before Christmas offering a 3 year extension at $300/ac. I declined the offer and explained that we still had close to 8 months left on the lease and would rather wait to see how things play out. Iām not experienced in oil/gas like many of you that post but I found it somewhat uplifting that we were contacted 8 months out, especially since oil prices have crashed.
Is this a sign that most operators in Reeves are still willing to retain/acquire acreage or is this just an isolated incident?
Iām looking forward to seeing what the sealed bids reveal after January 20 but Iād like to hear what you and others think about leasing activity. Thanksā¦
Thanks Ken for the information. Silverback filed with Texas RRC last September to be listed as an oil/gas operator. Next few months should be interesting for all who were involved with Petrohawk/BHP.
Looking for recent lease proposals in H&TC Survey. I have a lease expiring and have received a proposal to do a 2-year extension, but the per acre dollars seem real low to me.
Interesting what one can find out when doing a random search. After a couple of you had been talking about Silverback buying BHP/Petrohawk leases this past year I decided to search for info. Main reason is our lease with BHP runs out on Feb1. However they do have a 2 year option. When going to BHP website, then Owner Relations I then scrolled down to and opened Reeves County (Upstream ) Assignments. After glancing at 12 pages of legal papers on selling to Silverback were about 13 more pages of land or leases that to me look like the properties that were sold. I found ours on Block 58 Sec. 15-16 PSL then went back and found Fred Kleinās and Paul Eggers. So yāall that have leases expiring with BHP go check this out. Hmmm now will wonder what Silverback will do with the lease in the next couple of weeks. Take the option or dump us?? With the prices of oil the option might not be to bad.
Ken ā good catch! Also, the āDownstreamā Assignments (gathering facilities, processing equipment, pipeline ROWs, etc.) went to EagleClaw Midstream, an affiliated company of Silverback. Later ā Buzz
We will get a better handle on them over the next few months from the following activity (in no order of importance); -do they take the options on leases acquired, -do they acquire new leases, -do the apply for new well permits (or what do they do with existing permits in which no activity has begun) -what do they do on the wells acquired which have declining production (do they use latest technology to improve production or settle for what they can get without spending dollars) By no means meant to be all the questions, but ones they will have to answer over next few months. As for me, I am excited about the potential for this part of Reeves since it is obvious that BHP left the area about a year ago. New player in the area, but they will need to show some type of activity or they just become another flash in the pan (kind of like BHP).
The point being, if you are ādumpedā there is always competition, especially in light of the long term outlook I posted. Read onā¦
Read the homepage of Fleur de Lis Energy:
http://investing.businessweek.com/research/stocks/private/snapshotā¦
Will the competition take advantage? Will they offset, using your property?
Buzz, This is Marie and yes I did catch the downstream also. Now, for you a question which I may have asked you two years ago. One of our sections has tanks, etc on it from the gas well in 2005. I believe I talked to you and maybe the General Land Office, and my understanding is that we own all of this equipment. Is this something EagleClaw might purchase. We would rather not have anyone reap the $$$ off a a sale as we think it is ours to sell. I did try contacting the railroad commission to see the standing on that wall and to my recollection I donāt believe it has ever been capped or abandoned. What would you know about any of the above?? Or anyone else chime in.
Encap Investments (these folks) funded Silverback Exploration (these guys) to who are supposed to be doing this:
āmaking strategic, high-value acquisitions, developing assets to their full potential and creating value for our partners and interest holders.ā
Here is how the companies funded by Encap work together:
Linn Energy sold West Texas assets to KKR in October 2014.
Operations on the 7,200 acres in the Permian Basin will be handled ā¦
KKRās 2015 Outlook:
http://media.kkr.com/media/media_releasedetail.cfm?ReleaseID=891272