Debbie, that is definitely in the Alpine High area. Apache has a shut in well on that section. It is the Pollux #1H well.
M Smith, every single well is going to be different. Earnings generally start relatively high and decline quickly to hopefully a long stable plateau. To answer what one typically receives per month, one would have to average from first production through the present and it would change the next month. There may be months with no royalty at all and production may double the next month. One should never rely on the oil check from a well but plan what to do with the money should it come. The measure of a well is how much total wealth it produces before it is plugged and abandoned. Your question is not meaningless, but hard to answer in a meaningful fashion.
Thanks. I guess a range even initially isnāt feasible to throw out there either. I was hoping for an example or two knowing there are many variables. Iām not even sure if there is any activity when ours is at. Our rights are in H&GN Block 4 Section 68 abstract A-3843.
How much do you typically make per month per NMA once they start pumping oil?
Mr. Smith,
As a rough estimateā¦1 NMA would yield $475 in the first month of production if the well averaged 1,000 barrels of oil per day for this first 30 days.
Assumptions I used were a 640 acre unit, 25% lease, and $45 net price.
This is a very rough estimate but should give you a general idea.
Mr. M. Smith, donāt want to rain your party but well 35550 permit is a vertical brine water well not an oil well. Iām also in section 68 and the well is permitted to PA Prospect.
Full name is Silverback Big Fundamental 4-52. Itās in the south half Section 52, Blk 4, H&GN RR Co., 5 1/2 miles NW of Pecos.
Centennial Resources who recently bought Silverback seems real proud of it. In their earnings call the CEO Mark Papa said he consider it in the top 5% of horizontal wells drilled in Southern Reeves County based on BOPD per foot of lateral.
JM Wilson, if you are still looking for completion information on the Silverback Big Fundamental well here is what Centennial said in their May 10 earnings call
There were a few standout wells completed during the quarter. The big fundamental 1H was the first well drilled and completed By Centennial on the recently acquired Silverback acreage. The well targeted the Wolfcamp Upper A reservoir had an effective lateral length of approximately 4,600 feet and was completed with Ā£9.1 million of Proppant and 10 clusters per stage. While the IP30, 1,135 barrels of oil per day and 1,700 barrels well equivalent per day was an outstanding result the IP60 of 997 barrels of oil per day and 1,498 barrels of oil equivalent suggest this area will have a shallower decline and thus an increased rate of return versus what was originally anticipated.
Where is the Big Fundamental?
Thanks to everyone for all the great info.
Mr. M. Smith first of all Iām no expect just a mineral owner like you in Blk 4 Section 68 AB 1154. The only activity close to us is Section 66, A-414. It seems Colgate will be drilling or is drilling a horizontal well in this area.
We have Mineral rights in Blk 4 Section 68. I assume this is close to the area you are referring to? Is there anything being done recently in the immediate area of Section 68?
M Smith,
I think you are referring to Railroad Commission Public GIS(Geographic Information System) Map Viewer:
http://wwwgisp.rrc.state.tx.us/GISViewer2/
Clint Liles
I have some open acreage in Reeves and western Ward and am weighing an offer. If anyone here is interested in leasing the properties, please feel free to reach out.
Hap, without a legal no one can help you.
What is the right link to the GPS map that shows the wells and breakdown of sections?
What is the easiest way to see if permits have been obtained or if there is drilling in the area of property my family owns in Reeves Co. We are in Section 14, Block 5. I see that there are two permits there referred to as Iceman Unit, one being API#42-389-35915 and the other API# 42-389-35916. I donāt see an API for my property at all on my lease .
Just got a check and agreement for construction of a road on Section 46 block 41 ( we own just a 50th ) Pay,net proposed is $50 a rod. Any comments/ ideas/ opinions?
There are pipelines going in from Orla to Waha in Reeves Co and the easement agreements, with a little polite negotiations, have paid me better than $300/rod. Every situation is different, of course.
Be sure to read and understand the written terms of the ROW agreement. As with oil and gas leases, there is great variance. The pipeline company form is written in its favor. You do not have to agree to a permanent easement and it should be limited to a single pipeline.
Kathleen, you lease before there is activity on your land. The lease will only include a legal description of the gross acres. Later the oil company files a permit with RRC for a well. The API number is assigned when the permit is approved. Each well has a unique number - 1st two digits are state; 3 digits for county and 5 digits for well bore. Texas is 42 and Reeves is 389. On RRC website, open the Drilling Application application and look at the data. The plats will show the acreage included and where the horizontal wellbore is located within the acreage. If your acreage is included, then you will be paid royalties when the well starts producing. COG has permitted 3 Iceman wells on same 800 acres which include E/2 (or SE/2 depending on orientation) of Section 5, plus acreage in 2 other sections. These are 2-1/2 mile laterals. So whether you are in these wells depends on where your minerals are located in the section. You can always call land department of your lessee and ask.