I detest dealing with Chesapeake.
Duncan – thanks… didn’t realize Apache was interested that far north in Reeves. Later – Buzz
Daniel – mind sharing your location? TIA – Later – Buzz
Interesting artic from Investors Business Daily
http://www.investors.com/news/boom-or-bust-u-s-oil-patch-finds-new-…
Later – Buzz
Dallas Fed sees rising oil and gas outlook
30 Jun 2016
Houston, 30 June (Argus) — US oil and gas companies see an improved outlook after some growth in the second quarter of 2016, according to a survey of executives by the Federal Reserve Bank of Dallas.
A majority of executives said that business activity was stable in the second quarter while about a third said business activity expanded, according to the Dallas Fed’s latest survey of US business activity.
“Outlooks improved or held steady for most firms, in a marked shift from last quarter,” the agency said. The survey suggests some easing of the strong declines earlier in the year.
The survey includes companies in the agency’s eleventh district which includes Texas, northern Louisiana and southern New Mexico.
Exploration and production companies reported that crude and natural gas production fell again in the second quarter, but at a slower pace than in the first.
Respondents were bullish on prices. More than 70pc expect higher crude prices in one year, and more than 50pc expect higher natural gas prices.
Oil and gas service companies said that declines in equipment use largely abated in the second quarter. Service companies have been especially hard hit because of the drop in oil prices.
Capital spending declines also moderated in the second quarter, particularly in the services sector. About 30pc of the companies surveyed reported cuts in spending, down from 60pc in the previous quarter.
Labor market indicators suggested that cuts to jobs, hours and compensation continued in the second quarter, but were less widespread.
The survey included 152 energy companies, including 67 E&P companies and 85 that provide support services.
Later – Buzz
Is the comment wall the best place on this site to let folks know we are taking offers on our Reeves mineral interests? Or, is there some other place that owners post there offers to sell? We are taking offers on Sec. 80 and I just need to get the word out.
This would be a good place. You will probably have some offers by the end of the day. There are 3 Section 80’s in Reeves County. Section 80 Block 4 is the only one I would be interested in making an offer on.
We are taking offers to sell mineral rights for Reeves Section 80, Block 4, tracts 1,2 and 3 - 76.5375 nm acres. Currently it is leased and one well spud. Interested parties should contacted us at mccormacaj@gmail.com.
I need advice ~ Does anyone know what my best options are ~ my lease has a no pooling clause and now a well has been drilled on neighboring property with an 8500 ft lateral ~ however the drill pad was placed on a corner of my property and they want me to agree to pool 25 acres of my property with over 600 acres belonging to a neighbor.
The original permit said there was no pooling. The well was drilled in april or may
John Harris
Contact Wade Caldwell. He is fair on his prices and will protect you.
Thank you, Thank you, Thank you Wade Caldwell
The Fires family got on that Wade train after reading this forum and we are so glad we did. Wade got us more money and a lot better lease…if you don’t have a good lawyer we highly recommend Wade Caldwell.
Thanks again, Wiley and the whole Fires Family..TennisDaze has give you some excellent advice/things to consider. It does seem like an odd situation, considering this was an off site location. I’m wondering if a mistake was made and their first take point was short of the 200ft lease line requirement.
John, It depends on several factors. It would be helpful to see the particular well, unit acreage and operator.
First is your gross and net acreage sufficient for a horizontal well? If not, then you will need to pool with some other acreage for a well.
Second, Do you own 100% of the minerals or some smaller amount? If less than 100%, have the other owners agreed to pool their minerals?
Third, Do you own the surface where the well was drilled? The surface owner should receive damages for the well pad and also pipeline ROW payment for the total length of wellbore under that surface. This can be significant because the vertical wellbore will be almost entirely under the surface tract, down to the curve.
Fourth, look at the plat and permit to see where the first "take point" is on the horizontal wellbore. Most likely it is 200 feet inside the 600 acre tract. That is the reason that the well was not a unit when the permit was filed.
Fifth, why does the operator want to add your acreage to the well and create a unit? What are the terms of your lease? Does the 25 acres separate from your remaining acreage or will that production hold your leased acreage without any other drilling on your acreage?
Sixth, has the operator told you about plans for your remaining acreage? Will it be in one well or divided into several wells? When will a well be permitted and drilled? You want to be sure that none of your minerals are left without being allocated to a well.
Seventh, has the operator presented you with the Declaration of Pooled Unit Agreement? You need to be careful about the exact terms of the DPU. Historically the DPU contained settled terms that set out unit acreage for specified depths. More recently, DPU contain language that allow the operator to change the acreage, depths, etc. You would only want to ratify a unit for specified acreage and formation. Also, how will the royalties be allocated between the 600 acres and your 25 acres - by acreage or by some other method such as length of horizontal wellbore underlying the tracts.
Eighth, has the frac been done and how are the flowback volumes? You can ask for information before making a decision.
This is not an complete list of considerations but should give you a start. Good luck.
That sounds like it may involve my land area.
Thanks to Tennis and Mike ~ great information ~I think its time to turn it over to Wade, it sounds way over my head.
John,
That’s a Good move. I too have had excellent results when Wade Caldwell assisted me.
I also would like to thank Wade Caldwell for help on lease just west of Pecos
Thanks for the kind words.
I was in Reeves Co. this last weekend and the flares from the Apache wells in Balmorhea and SW Reeves near I-20 were pretty impressive.
After five years of one lease holder selling to a second lease holder, Petrohawk drilling a shut in producer well (McAfee C17-21, API 38933382) in 2012, BHP purchasings Petrohawks assests in 2013, and then BHP selling much of its assets to Silverback in 2015, I requested and received a “release of lease” from Silverback which is in the process of being recorded in Pecos. Now 50 nma in Sect 21, Block C-17 (Abstract A-1410) can be put back into play. Section 21, Blk C-17 is at the SE corner of Blk C-17 and borders on Section 4 of Block C-18 and section 1 of Block 72 which has the producing Barbee 72-1 (API 38933389) well drilled from the same platform as the McAfee well
Does anyone know of any activity or interest in leasing minerals in this area of Reeves County? I have had a number of offers to purchase the minerals but not to lease.
Donny
Anne,
Have your attorney send them a certified letter demanding the tax statement or the minerals/surface acreage could be sold at auction if not already been sold at auction. How long has it been since the taxes have been paid if it is surface acreage? Something sounds fishy here…if they are not sending you the tax statement. JUST MY OPINION.
Clint Liles