From the FWIW department… recent ‘big name’ E&P companies that have joined the drilling fray in Reeves County:
APACHE CORP.
CHEVRON
DEVON ENERGY
EOG RESOURCES
OXY USA (Occidental Petroleum)
SHELL (Shell Western, i.e., ex-Chesapeake properties)
Also, Rosetta Resources – who recently closed a deal with Comstock Resources in Reeves Co. – has applied for 11 drilling permits in Reeves (S/SE/SW of Pecos city)… albeit mostly development drilling (going by well numbers, i.e., #2. #3, etc.). Later – Buzz
It has actually come true. Start of well drill (42-389-33372) was May 5, 2012, and first royalty check was received today. Thanks to Buzz and all of you for the education I have received over the last year from this website. Good luck to all of you waiting. If there is any doubt to those of you considering whether to sell or not, our wait was far worth it.
Are Permian Shales the next big thing?
[http://www.wellservicingmagazine.com/featured-articles/2013/04/are-...](http://www.wellservicingmagazine.com/featured-articles/2013/04/are-permian-shales-the-next-big-thing/)
It has actually come true. Start of well drill (42-389-33372) was May 5, 2012, and first royalty check was received today.
Where in Reeves county is this well?
There is an instructional video on the Home page that shows you to get this info off the RRC website. You can just input this number, the API number, and locate the well.
42-389-33372 is 7 miles NW of Pecos
Great article! Thanks for linking it here. The article confirms a very recent conversation I had with a veteran landman active in Reeves County for one of the bigger producers. The Wolfcamp potential gives more hope for Reeves County royalty owners, IMO.
Hello all, I have received a letter asking if I had any interest in leasing the surface interest of 160 acre parcel in block C8. It is from Anthem Oil & Gas. Question is why would a oil company ask about the surface interest vs. mineral interest?
thanks
Kurt, they could want to drill a well from your property into someone elses minerals. Offsite drilling. I would decline unless you really need the money and were not enjoying the surface anyway. Literally, there goes the neighborhood. Pad, road, tanks, pipeline, electrical easements, stored equipment, materials and noise.
Many people look at the price per acre and never think of how their remaining acres are devalued. If you lease them 10 acres and the other 150 acres value is reduced by half, did you make or lose money?
If you go ahead and lease them the surface, I recommend you get help from someone with great experience with pipeline and O&G leasing.
Look out for the freebies, easements and water.
Another nice thought is could they be wanting to drill a commercial salt water disposal well on your property? Have they specifically told you what they are leasing for or they just want to lease some surface for a well? I have seen some sneaky oil and gas leases where if the well is dry, the operator gets to keep the well as a salt water disposal well with no mention of payment for filling up your pore space or the traffic/ disruption. Something to think about.
Thanks r w
David, I’m really new to all of this hence the question, what does a mineral classification do to the property? I know that the block bordering ours to the north has activity and was part of a prospectus offering by San Saba Resources.
thanks
Kurt – what Section in C8, PSL? Later – Buzz
I have a question about undivided participating mineral interest in Sections 17 and 18 of Block 56 PSL. We also have undivided mineral acres in the same sections. As it was explained to me, once there is a producing well, royaties from the other mineral owners will pay my wife for her non-participating royalties. If this the case and then what happens if the other mineral owners lease for different royalty percentages? Also, since she is a mineral owner, will a part of her mineral interest royalties be taken out to pay a part of her non-participating royalties?
A clear explanation of non-participating mineral interests and how the royalties are paid out would be appreciated.
Donny
Or else maybe that section is mineral classified
David, if the section was mineral classified, would they not still be seeking an oil and gas lease?
Donny – ALERT!!! Recent EOG Resources activity16 miles S of Orla, a mile NW of your PSL BLK 56 SEC 17…
EOG Resources First Quarter 2013 Earnings Call Webcast, May 7, 2013
Listen to Webcast: http://www.media-server.com/m/p/ppqx329m
{you will have to register}
Reeves - Apache well results @ 11:00 minute mark
[APACHE STATE 57 #1101H (A2469, PSL BLK57 SEC 11) – Upper Wolfcamp Hz Well, Reeves County
- 815 Bopd + 600 Bpd NGLs + 3.8 MMcf/d]
Summary Remarks @ 24:30 min mark
Q&A begins @ 27:00 min mark
EOG Resources, Press Release, Feb 3, 2013
On the Texas side of the Delaware Basin, EOG confirmed a new shale play with the completion of two horizontal Wolfcamp wells on its 114,000 net acre position. In Reeves County, the HARRISON RANCH #56-1002H and #56-1001H (both A4449, PSL BLK 56-SEC 10) tested at rates of 377 Bopd with 602 Bpd of NGLs and 3.9 MMcfd of natural gas and 635 Bopd with 480 Bpd of NGLs and 3.1 MMcfd of natural gas, respectively.
The Apache and Harrison Ranch wells are ~6 miles from one another.
EOG is currently drilling the HARRISON RANCH 56 #2302H (A4436, PSL BLK 56 SEC 23) [~1 mile ESE of your SEC 17]
In addition, Petrohawk is currently drilling the COSMOS INVESTMENTS 45-45 #1V (A2066, PSL BLK 45 SEC 45) [~3 mile NW of your Sec 18] Later – Buzz
PS 1 – IMO, $200/acre is not even in the parking lot.
PS 2 – I’m VERY surprised the EOG activity is getting hardly any press on this board.
Buzz,
SE 1/4,Sec 28, blk C8, Abstract #3902
R W, good point, you’re probably right, but since Kurt is new to this I didn’t want to assume; I thought maybe he got an oil and gas lease offer but knew he only owns the surface and so assumed its a surface lease.
Kurt, “mineral classified” is land where the State of Texas owns all of the minerals but the surface owner acts as agent for the state, and as agent the surface owner gets half of the lease bonus and half of any oil and gas production.
Does anyone know if the EOG wells are in a different zone than most other horizontal wells have been in north west of Pecos? Am I correct in saying that over the last two years, most were in the third Bone Spring, not the Wolfcamp member? This is very important for future prospectivity, IMO.
Stephen – EOG’s 3 wells are in the Wolfcamp, although different levels/tiers (for lack of a better word). I do know the Apache well noted below is in the Upper Wolfcamp and different than from the 2 Harrison Ranch wells. Most other wells NW of Pecos drilled by Petrohawk are classified as gas wells. Later – Buzz
EOG Resources – Q4 2012 Earnings conference call transcript
Feb 14, 2013 {excerpt}
Bill Thomas, EOG, President
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
In 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 has 2,000 feet of gross Wolfcamp thickness in some places and approximately 300 million barrels equivalent per section of resource potential.
We have 220 subsurface faults total on our 114,000 net acres and we estimate the reserve potential to be 800 million barrels of oil equivalent, net to EOG. This is another substantial addition to our growing opportunities of higher rate of return drilling inventory. As a cautionary note, because we have such a large inventory of opportunities across the company, significant production growth in the Delaware Basin Wolfcamp should not be expected until the 2015 timeframe. (to be continued) Later – Buzz