Marian, We are also leased with Petrohawk. Not much activity and the parent company has been having a hard time with low commodity prices.
BHP is not affiliated with BP. It is an Australian mining company. I donât know what BHP is thinking on extending their leases in Reeves. We have a year to go before then. However, Reeves is still active, the rig counts have been steady, and the drilling is spreading out into the county from being clustered around Pecos. If BHP is easing out of the area, I bet they sell their acreage rather than letting a lot of leases lapse. Lynn, I read it as 145 million BOE on the acreage Rosetta bought. The studies I have seen say 300-500 thousand barrels recoverable per section of land. Definitely not 145 million barrels per section.
Wade per your correction, I just went on line and see that BHP has just posted in Feb the annual 2012 report for Petrohawk. I see that they have been selling interest in Fayetteville Shale (Louisanna) but have increased interest in Eagle Ford Shale (south texas). I did not see any mention of WolfBone that is what I recall is the shale formation related to the Pecos area. Of the 57 pg report, a brief scan of pages 53-54 give and idea of their interests. The last two pages indicate a delay in five year plans for drilling. If I read it right, there were no âmineralsâ purchased in 2012? http://www.bhpbilliton.com/home/Pages/default.aspx Here is the link to the page to find the report if you want.
Thanks WadeâŚmy confusion and our lease too is up in one year as I re-checked.
Does anyone know what is happening in SE/4, Sec. 8, Blk 51, T-7? We have had numerous offers to purchase the undivided mineral acres in the section. In May 2012, Cheyenne Gas Partners offered #3750 a mineral acre. In February Permian Basis Acquisition offered $4800, and then in February 2013, Cheyenne offered $5,500. I donât know of any activity in the immediate area. Browning Oil Company had our minerals leased from 2005 through June 2011 at $300 per acre and 1/5 % royalty, It is not leased now. However, the high offers for the mineral acreage makes me wonder what is planned. There have many more offers beside the three I mentioned. I would appreciate any information anyone might have. Evidently someone thinks there is potential. My wife is tempted to sell, I say hold it.
Donny â if I have you spotted correctly â T&P BLK 51, TSP 7, SEC 8 â 9.8 miles south of Pecos (slightly SE), you are in an area of intense drilling activity. Itâs really hard to believe you arenât under lease. There are 40 rigs running in Reeves County; approximately half of those are concentrated S and SE of Pecos. Vertical well costs in the area are ~$4m. IMO, in that area of the county $5,500/acre is too low for the minerals, but I donât know your circumstances. You ought to take the 7-hour trip from Bryan to Far West Texas and see for yourself⌠youâll be amazed at the activity. Oh, and take your camping gear because you wonât be able to find a motel room in Pecos on short notice. Later â Buzz
Sounds like you ought to be able to lease it for at least $2k per acre and a quarter royalty. I canât believe they havenât drilled it yet.
Buzz, thanks for the informative reply concerning Sec. 8, Blk 51. My wife and I donât really need the money so we will keep the minerals for now, if not for us for our children. My wife and I both were raised in Pecos and graduated from Pecos High School. Her father was a lawyer in Pecos and accumulated minerals as part of his law practice in Reeves County. Endeavor Acquisitions completed a well in Sec 1, Blk 7 on the Pecos River in April 2012 and has been producing royalties Even with this producing well, Permian Basin only offered $3200 for the mineral acres, while at the same time offering $4800 for the minerals in Sec. 8, Blk 51. Thus the reason for my earlier question. Like you, I am surprised that Browing dropped the lease on Sec 8, Blk 51O when it expired in June 2011. I will have to check around and see if some other company is interested in it. Other mineral acreage S and SE of Pecos are currently leased, but will come due again the first six months of 2014. So, I want to keep informed on the going rates. In the past, several times we would lease, and soon after get a higher offer.
I do have a another question, if $5,500 is too low for the Blk 51 area, what is the highest firm offer are you or anyone else aware of?
Last March, I did take a trip back to Pecos, I came in from Abilene, through Midland, Odessa, Monahans, Kermit, Mentone, Pecos, then Carlsbad, Artesia, and Roswell. The friend I was with was photographing court houses, thus we were hitting all the remote county seats he was missing. Once we left Pecos, we had to go all the way to Roswell before we found a motel with a vacancy. I was amazed at the activity? Where was all this activity when I was trying to sell my motherâs house in Pecos five years ago. House prices have sure increased!
For those of you interested in minerals eight miles west of Pecos you might want to take a look at this. Kerry http://www.albrechtai.com/divestments/San%20Saba%20Brochure.pdf
yes
that one would be up north just after you cross the state line
if you find another location let me know
Hereâs another link to the processing plant near Orla that Wade posted the link to: http://fuelfix.com/blog/2013/01/18/nuevo-midstream-completes-expansâŚ
Later â Buzz
http://www.mywesttexas.com/business/oil/article_f09a8954-c00b-55b1-⌠It is saying this one is near Orla, but I thought there was another one in the middle of the county not too far off I-20 west of Pecos.
Kerry, thanks for pointing out the report. We have leases in Block C9 Section 11-13. This makes me happy.
Jay
Buzz and Wade do you know the name of the gas processing plant petrohawk will use ? It is mentioned in this offering by albrecht? Thanks Kerry
No, but it is a major plant in the middle of Reeves County. I think it is operational now, because we recently got division orders a on Petrohawk well shut in since the summer waiting on the gas line to be completed. I am sure it is the plant they are referencing.
Hello folks
I plan to be in Reeves County April 3rd through the 7th (as an aside I was born in Pecos)
Wade, do you know the location of the gas plantâIâll go by and take a few pictures
I also plan to take some pictures of the general area along both sides of highway 17 from Pecos to Balmorhea. (I spent my childhood in Balmorhea)
Can we post pictures on the web site?
Kerry â good find. The 6 vertical wells/appurtenances being offered for sale â located 10-12 miles W and WSW of Pecos â were drilled by Boyd & McWilliams Operating, LLC. (Opr. #084751) in 2011 and early 2012. Later â Buzz
Buzz, Yes and SUG, Energy Transfer Partners, will be installing in the next few months but will call me when they start.
Buzz, Just a follow-up from our posts on 13 March. SUG is burying a 24 inch gas pipeline in a N-S orientation down the western edge of AB4061 C-18, SEC 4, W/2. SE/4 and will pay $125/rod. Not sure where the pipeline is going though.
As always, thanks for your insights.
Fred â thanks for the update. Maybe Bob can spot aboveground activity on his scouting trip. Later â Buzz