Missed this earlier… EagleClaw Midstream – an affiliate of Silverback Exploration – Commissions Cryogenic Processing Plant in Reeves County, Texas, May 3, 2016:
http://www.businesswire.com/news/home/20160503005481/en/EagleClaw-M…
Later – Buzz
Any indication exactly were the Cryogenic plant is going to be located?
I have been to the TRC site to see what the production numbers are on a well. Arabella hasn’t made an entry for April, May, or June. Of course, I wouldn’t expect one for June yet. Can anyone think of a reason they wouldn’t have made an entry/report for April or May?
Thanks,
Glen Kirk
Baker Hughes – Weekly Rig Count Map (updated Fri noon CT). Select State, County, etc.:
https://us.gis.connect.bakerhughes.com/rigcountweb/default2.aspx
Home page: http://www.bakerhughes.com/
Not perfect, but handy. Later – Buzz
Glen, To get an answer regarding a specific well, you need to post detailed information. Oil companies file production figures with RRC over 30 days after the end of the month. So April production would be filed after June 1 and May production will not be filed until July. Most operators file all the wells at the same time. Look at the RRC site to see if Arabella has filed April production for wells other than yours or has not filed any production. Do this under Production tab by Operator Number and a single month. Keep in mind that Arabella Petroleum Company LLC filed bankruptcy in July 2015. This company Is affiliated with Arabella Operating LLC at same address and related name of Jason Hoisager.
BEGIN PART 2(Too bad… chart showing increase in gas production did not print.)
Basin has seen dramatic increase in gas production
In the last two years, natural gas production in the Delaware Basin has ramped up rapidly, from 2.61 Bcf/d as of June 1, 2014, to 3.05 Bcf/d as of June 1, 2016, according to Platts Bentek.
The Permian/Delaware delivers the best internal rates of return for any gas-producing play in North America, with an estimated half-cycle IRR of 23%.
Although the Delaware is predominately an oil-rich play, it still produces significant volumes of associated gas. The basin has an impressive oil initial production rate and a favorable geographical location, which helps producers to keep the transportation charges low, allowing for a strong price differential.
The graph above shows gross gas production growth in the Permian Delaware basin over the past five-plus years. The recent downturn is due to lack of new drilling as prices remain suppressed for most of 2015 into early 2016. END PART 2… Later – Buzz
Buzz
Could you check the status of another well for me. 389-35151
Thanks Garland
Garland – permit approved 2-1-16… no sign of drilling activity as yet. Later – Buzz
Attention: Energen comes back to Reeves in a BIG way, as evidenced by:
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applying for 18 drilling permits since June 1st, and
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employing 3 active rigs drilling 12.8, 15.0 and 15.2 miles NW of Pecos per RigData 6-17-16 Weekly Drilling Report.
Later – Buzz
I’ll try to post this entire article in 2 parts… Later – Buzz
Enterprise to build Delaware Basin gas plant
By Jim Magill and Matthew Andre || Gas Daily
6-21-16
Spurred by the dramatic increase in the production of liquids-rich natural gas production in the Delaware Basin of West Texas and southeastern New Mexico, Enterprise Products Partners will build a new 300 MMcf/d cryogenic gas processing facility and associated gas and NGL pipeline infrastructure, the company announced Monday.
The company has yet to determine a site for the new plant, which will have the capability to extract more than 40,000 barrels per day of NGL, Enterprise said in a statement. The project is anchored by long-term commitments from a major producer. The facility is expected to begin service in the second quarter of 2018.
The project, the third cryogenic gas processing plant Enterprise has announced in less than 24 months, is expected to increase the company’s processing capacity in the basin 20-fold, to 800 MMcf/d by 2018, compared with 40 MMcf/d in 2012, Enterprise spokesman Rick Rainey said in an interview Monday.
“What’s driving this is an uptick in growth in production in the Delaware Basin. If you look at the geology, it’s an area of stacked pays, which provides years of drilling opportunities at superior economics. For producers, it’s an attractive and efficient play to be involved in,” Rainey said.
In addition, because the Delaware is such an NGL-rich play, “it provides multiple opportunities for different markets. It’s a good mix of opportunities for our customers as well as us, in terms of being able to provide access to other markets,” he said.
In a presentation in March, Enterprise said it currently had 350 MMcf/d or processing capacity in the basin and is expected to double that to 700 MMcf/d by the end of this year.
“As a midstream provider, we already have an extensive midstream system in that region,” Rainey said.
The company’s South Eddy facility began operations earlier this year, while in the southeast portion of the basin, Delaware Basin Gas Processing, a joint venture equally owned by EPP and Oxy, is expected to begin service in the third quarter of 2016.
Project to transport gas, liquids
“We’re building out, expanding our system in the Delaware Basin by adding these three natural gas processing plants along with associated pipeline infrastructure and gathering lines that provide access for residue pipelines as well as liquids,” Rainey said.
“What this does for producers is it provides them access to the most attractive markets and also provides us with more opportunities for bolt-on projects,” he said.
On the natural gas side, the infrastructure expansions will give producers access to the growing Mexico gas demand at Waha, as well as to markets in East Texas and along the Gulf Coast.
“One of the ways that we’ve been looking to serve our customers is providing them with access to Mexico,” Rainey said.
From the liquids side, the new infrastructure will help producers connect to EPP’s Mid-America Pipeline system, which provides producers with access to markets in the Midwest, as well as a major pipeline route that provides access to the East Texas Mont Belvieu petrochemicals complex.
“From there you have access to a large network of underground storage caverns, as well as fractionation,” Rainey said.
“What we’re doing is providing access to multiple market opportunities for what we expect will be continued production growth in the Delaware Basin.” END PART 1
Thank you Buzz for your help to everyone here.
Any suggestions on an honest, knowlegable and strong nego. to work with, when one wishes to sell mineral rights? Last time I handled the process and got bids up to $8000 an acre but decided not to sell. We are getting lots of letters again but I would think that someone with expertise in this area should fair much better. Do you folks think it is worth it to pay for help or better to nego. the deals yourself?
McHammons, you will probably be inundated with private messages on this forum from folks wanting to buy your minerals. Reeves County continues to get more and more valuable, so you may want to consider just selling a portion of your minerals and waiting to see what happens with the rest. As for your question about whether or not to hire someone, it is a toss-up. My advice would be to see what the highest offers are you are able to obtain on your own, and then at that point consider obtaining the assistance of a broker. That way you can structure the commission/fee based on what they are able to get you that is above and beyond what you negotiated on your own.
All-I love this site and appreciate the great information.
Question: How is Elevation doing in Reeves?
Any updates on what J. Cleo Thompson is doing and if/how many rigs they have in Reeves County?
Mike-
J Cleo is active on the Reeves/Pecos line, and just spudded the Hawking 22 NE.
Status of STATE WILLIE VEE 56-T3-6 1H, please? BHP/ Petrohawk
Duncan,
Because a company is offering more bonus and a little more of the pie doesn’t necessarily mean you should go with that company. If it’s a company like Chesapeake or Sandridge I would rather take less from some other company that has a good name for doing what’s right with mineral or royalty owners. Would you mind stating who the 2 different companies are?
Thanks,
Clint Liles
Wolfcamp So the operator of the lease would be required to purchase our lease from the third party and have to honor all of the terms of the lease?
Thanks Clint, I’ll use the numbers you gave me and just keep watching! Liz