Why does it show two block 56’s in the Texas GLO map?
Daniel, do you have a section number or the abstract number? Sarah
If you look at the GLO map the Township is printed in faint print. T-1 is the farthest north in Reeves.
Block 56 T-3
Kurt - Operating companies currently drilling in Reeves.
Thx, Buzz. Always wondering how our tracts are going to be developed. First the four vertical wells to hold the acreage of course, but let’s face it, we know that the sections will eventually support up to 16 vertical wells…and which operators are interested in doing that? Right?
Section 30, 32 , 36 , 38
abstracts of block 56 T-3 section 30. A2291 section 32. A2642 section 36. A4440 section 38 A2181
Thanks guys… I am told block 56, T-3
Daniel
Our Sect 258, about 9 miles south of Pecos was just turned over to OxyUSA as of the first of April. We have two wells drilled and two more are required to hold the section. J.Cleo had permitted the two wells but now I wonder when they will be drilled. My primary term expires late October, so I am hopeful that we will see activity soon. Has anyone on here had any experience or insights as to how Oxy operates? Are they an active developer? Competent field staff??? Would appreciate any feed back please.
Stephen – Oxy has really picked-up activity around Pecos in the last couple of months. Your experience makes it seem like they may have some sort of venture w/J. Cleo Thompson? Later – Buzz
Stephen – rest assured as far as being a major operator: http://www.oxy.com/AboutOxy/Pages/AboutOxy.aspx
The largest in the county! Later – Buzz
Marian, based on our experiences you should keep in mind the landman is not compensated by you for their services. Their objective is to get the best deal for the party sitting on the other side of the table from you and they have no future obligation to you for anything. There are some “company” landmen, but just as many independent contractors. Once a company decides on a particular area for exploration of high interest, they will sometimes put their own person in the “landman” position. Bottom line, I agree with Wade in that individual circumstances dictate whether to sell or hold. But in the long run (which could be your next generation), what is under the ground today is likely worth far more than anyone would pay you today! It is a personal decision that no one can answer for you, other than yourself. In our situation, it will be the third and future generations who will benefit from the property. I am thrilled that my first and second generations did not sell out for the quick dollar.
Pulling permits indicates interest at the time in drilling, but the problem is the level of interest is in a constant state of flux. Many of these companies leased more acreage than they can drill. Drilling budgets are stretched. This means it is a constant balancing act of drilling the locations that will produce the quickest cash flow with drilling the locations that will hold the most acreage. Infrastructure availability is also a big consideration. BHP built pad sites on us and they have sat for over a year. Several possible drill start dates have come and gone. Decisions on where to send rigs changes all the time. As to whether to sell, it mostly depends on how much the money is needed. You probably have hydrocarbons. You are likely to make much more on royalties than you can get in a sale. There are some exceptions. It also seems that about every 20 years or so, a major technology advance rekindles activity.
Buzz, Oxy bought J.Cleo and its partners out of at least Sect 258, Blk 13, FYI.
Thank you both Wade and Paul! It was starting to feel like a game of “cat and mouse”. You reflect what I have been reading about the over extension of companies leasing land. I thought we were in good shape as there is evidence of a pipeline being built close by. No need for any money at this time…I get the future generations part. I take that this could mean there are times if not the majority, that mineral rights may not be part of a lease with a long term investment in mind?
Yes Buzz you have our well permit info correct. BHP/Pertrohawk did contact the landman to get more info (a different person than the one who set up the lease). The previous landman told us to contact BHP for status info…so what’s up? Is this how this “game” works? Getting a permit for 2 wells doesn’t mean anything will happen? The new landman confirmed that these wells were not on a drilling schedule and could not provide any info regarding if they will ever be. Again how to you use this info or not to figure out to sell or “keep the faith”?
Buzz, do you have a link to the referenced EOG transcript? The Harrison Ranch 56 appears to be about 2 miles NW of my family’s 4 sections (A2291, 2292, 2293, 2294) that are leased to BHP (Petrohawk). I have noticed new gathering lines W & SW of us.
Mike
EOG Resources’ Q4 2012 Results - Earnings Call Transcript
Feb 14 2013
{excerpt}
“In the Delaware Basin, we have completed our first two horizontal Wolfcamp wells in Reeves County, Texas, and we have significant results to announce. The Harrison Ranch #56-1001H tested in the upper Wolfcamp at 635 barrels of oil per day, with 480 barrels of NGL per day and 3.1 million cubic feet of gas per day.
The Harrison Ranch #56-1002H was completed in the middle Wolfcamp at 377 barrels of oil per day, with 602 barrels of NGL per day and 3.9 million cubic feet of gas per day with estimated gross reserves of 900 MMBoe per well and a target completed well cost of $6.5 million. These results yield a strong 60% direct, after-tax rate of return. Our Reeves County acreage has as much as 2,000 feet of gross Wolfcamp thickness in some places and approximately 300 million barrels equivalent per section of resource potential.”
The above 2 wells are located 16 miles south of Orla (very slightly SW). In the last several days, EOG has applied for 6 additional permits in close proximity to the above 2 wells, 5 of which are horizontal. Later – Buzz
ESTIMATED ULTIMATE RECOVERIES IN THE PERMIAN (Part 3 to this group) Part 1 http://seekingalpha.com/article/1181151-bakken-update-estimated-ult… Part 2 http://seekingalpha.com/article/1188771-bakken-update-estimated-ult… Part 3 http://seekingalpha.com/article/1202481-bakken-update-estimated-ult… ABOUT MIKE FILLOON I am an energy investor and author of the Bakken Update. Specific interests in oil and gas producers in the Bakken, but also follows unconventional names throughout the U.S. My also include oil service names and U.S. refiners. I work as a contributing editor for Shale Experts, and do freelance writing for Seeking Alpha and Investopedia. I am on the Board of Directors and consult for Frac Water Solutions in Baldwin, North Dakota. Note: you will have to register with the site. Later – Buzz