I have 2 wells in Sec.258 Blk 13 so I am feeling better about life, haha!
Who has drilled the wells on you so far? Hopefully they are hanging in for you.
Liz â good observation on C-W recent permit application/name change, etc. Technically, they amended the prior application⌠as noted on W-1:
âReason for Amending - Lease name change & profile change from CWEI-CHK 184-13 #1 - Vertical well to Bradley 184-13 #1H - Horizontal well.â
It seems C-W may have a âdifferentâ relationship w/Shell than under the old joint venture deal w/Chesapeake. I agree, itâs a good sign that C-W is going to ramp up their activity in Reeves⌠weshallsee. Later â Buzz
Liz that is exactly what I got from CWE in Sec 300 Blk 13 a year or so ago.
Hey Steve, my family has a chunk of interests right next to yours in Blk 52 T-8, starting with Sec38, the bottom left corner of which touches top right corner of 300 in Blk 13. (We also have some Blk 13 interest several sections south of you and also SE in Blk 1)
Couple years ago we leased a chunk of our 52 T-8 interests (incl Sec 38) at $750/ac and 24% royalty in that area to Wildhorse (then assigned to CWE, CWE assigned 25% to Chesapeake, who assigned to Shell).
But then last year we leased the rest of our 52T-8 interest to CWE at $1000/ac and 25% royalty. Its been nice how we keep working out better deals since the mid/late 2000âs forward. Iâm not the one who negotiates the leases and I donât have time to check all our most recent leases but Iâd bet we havenât leased for less than $1000/ac and 25% royalty in at least a year, maybe two.
Hi David! I guess the big question is when will we be seeing a drill bit? Letâs stay in touch.
Maybe Clayton Williams really is planning some action in our area in the near future. They just applied for a new permit for a well already permitted in the section south of us. The original permit was over a year old and was for a vertical well. The new permit (submitted Monday) is for a horizontal well. Do they do horizontal and vertical off the same well, or are they now planning a horizontal well only? The original wellâs acreage was around 310; the new wellâs acreage is just a tiny fraction under a half section. The old permit had Chesapeake in the name, the new one doesnât. In any case, I consider it an encouraging sign, coming at the same time as they finally completed our lease.
Thanks for catching that, Buzz!
A question for anyone - the wells in our area have been vertical up until now. Is there some reason to go horizontal? Arenât vertical ones cheaper? Do horizontal produce better?
Buzz tks. for the information, was hoping they were horozonilling some in my area, thanks much for the response.
I have wondered for years now, why the wells south of Pecos have been predominantly vertical, while wells to the north are nearly always horizontal
Thank you Buzz, Wade and Sarah. I can see some research is in order for me since itâs plain that you all consider horizontals better but Iâm still not seeing exactly how it can be so! But I do believe you - so if we ever have wells sunk on our property, I will hope for horizontals. Thanks again!
Buzz, I am very sorry to have included you with the others!
==< ⌠the wells in our area have been vertical up until now. Is there some reason to go horizontal? Arenât vertical ones cheaper? Do horizontal produce better? >=
Liz â a very good question. Keeping in mind weâre talking about southern Reeves⌠vertical wells in your area have been intercepting several (say five) productive intervals (âstackedâ, as they say). All five intervals would then be produced (eventually) into the same vertical wellbore.
If a horizontal well were drilled in the same area, only one of the five productive intervals could be chosen for the horizontal lateral⌠so the other 4 intervals would not have access to the chosen horizontal wellbore.
Generally, in your area, a vertical well would cost ~$4m, whereas a horizontal well would typically cost twice that.
Horizontal wells are a work in progress to learn if that is the way to go in southern Reeves. Later â Buzz
Liz â read my statement again⌠âHorizontal wells are a work in progress to learn if that is the way to go in southern Reeves.â
It depends on the target.
Later â Buzz
My Sec.258 has had two well drilled by J.Cleo. Recently found out that Oxy USA had bought the property and will be taking over April 1st. There are two permitted vert wells waiting to be drilled. Should be interesting to see if the change in operator to a âBig Boyâ company, might result in a change to Horizontal.
The trend seems to have been toward horizontal wells, as a general rule, although the area and the company have a lot to do with the decision. For example, Petrohawk drills mostly horizontals, where as Comstock drilled mostly verticals, but has been shifting to horizontals. As owners, hope for a horizontal. More upside, and there are other pay zones that can be drilled later. Also, I understand the drop off may not be as severe.
I agree with Wade, the best numbers long term are horizontal, and many of the companies are leaning towards horizontals. Whether vertical or horizontal the first wells are to hold by production and later the wells are to recover from other zones, other horizontal depths, or down-spacing verticals. All are good, but the prediction is for a three fold increase with horizontal wells. I hear Reeves is still hot on everyoneâs list, best of luck to all. Sarah
I posted the âcommentâ below in one of the âsubgroupsâ of the Reeves County forumâŚsomeone suggested that I post the comment in this groupâŚany response would be appreciatedâŚ
Bill
FolksâŚ
quick questionâŚI have seen posted here several times that the maximum number of vertical wells in Reeves County is 4 per section(or 1 per 160 acres). When I look at the TX RRC GIS VIEWER of Reeves County is see several sections where there are more than 4 wells per section. Can someone âenlightenâ me?
Why do I ask? we/my family has several sections and weâd like to know from someone other than the oil companiesâŚ
thanks in advance,
Bill
Bill â quick answer⌠well spacing depends on RRC rules for the field the wells are in⌠not the section they are in. And, they can be changed (for good reason) as time goes on. Later â Buzz
William, 2 things at play here, RRC can set density rulesâŚand change them, of course. Also the oil companies need to determine how best to maximize recovery. The hope is RRC and operators are on the same page. When you look at vertical wells in Reeves there are estimates that eventually the wells will down space to twenty, maybe even 10 acres. The initial wells help an operator check the economics and best practices and then usually the density increases if the economics support this. Thankfully, in Reeves the wells usually do. Sarah
Bill â I like Sarahâs response⌠I would like it âbetterâ if she preceded âdensityâ w/âwellâ. Well âdensityâ or well âspacingâ also depends on whether wells are classified as âgasâ or âoilâ wells⌠gas well spacings being much larger than oil well spacings⌠donât forget that many wells produce both, so this delineation is paramount.
FWIW, the âpopularâ field designation recently and currently being drilled in southern Reeves is the WOLFBONE (TREND AREA) FIELD. Later â Buzz