CWEI is interested in leasing land i have a small interest in A3027. Sec34 blk. 50 T-7 T&P. Anyone know of lease rates in this area?
Garland
Buzz, any guestimate as to how far the frac extends from the wellbore?
Thanks for all the valuable information you add to this board.
Stephen, I let that one get by me. It’s not in my lease. That’s a clause that I have in some other leases but I never thought much about it. It is NOW on my checklist. Thanks for your post.
Of course. It is controlled by field rules. Again, most leases require wells that are within 1,000’ be offsett within 100 days.
Billy, that’s about it.
Buzz, I listened to the conference call when you first told us about it. Great source of information.
My 3 yr lease has 2 more years on it (no extension). I understand why they’re drilling the properties with leases that will soon expire. I am just anxious to have them drill on my minerals!
Timmy – strange… RRC site shows 389-3306 permitted 9-12-11. Seems their interest may have waned. Normally, that would be welcome news. Later – Buzz
I see a new well was just permitted apprx 500’ from my property line. Is this good news for me? Bad?? Does it mean anything at all? it is well API # 389-33006 Big Bill 178. Anyone with info please respond. Thanks.
To state the obvious, if they make a good well, then yes it could be significant. If not…
No, that Is not good at all, providing the well is producing daily.
George - what is “a good one” is relative to each individual. If a horizontal well produces 1,000 bbls a month, at $100 per bbl (for simplicity sake) then the production would be $100,000 for the month. You would then take your Division Order percentage (your percentage share compared to the acres in the producing unit) of the $100,000 and that is your monthly royalty. Keep in mind that a horizontal well declines in production significantly over time so the next month production would likely be lower (as long as first month was a full 30 days of production). Also, while one horizontal well may produce 1,000 bbls a month, another horizontal in the adjacent section (or same section if spacing is appropriate) might produce significantly more or less. Most of the horizontal wells in Reeves are considered exploratory and development wells at this time until more knowledge is gained by the drilling industry. The old saying in real estate of “location, location, location” also applies to exploratory wells north of Pecos, until the industry figures it out.
Whats considered a good horizontal well? Theres a well a mile from my dads land and the RRC query says it producing around 1000 bls of oil a month, is that a good one?
Timmy – make that 389-33006…sorry 'bout that! Later–Buzz
Last fall I had an offer from Conoco Phillips to lease my 2.5acres plus 2/5 of 2.5 acres in Reeves outside of Orla, I believe. The description is T&P RRco Block 57 Township 1 Section 34;Se1/4 of SE1/4 of SW1/4 of 10 agg. acres. Just as we were finishing up the lease, they pulled out. I have it posted in the ad section here. I understood that this area was pretty “hot” at the moment, but it appears that there is not much going on there. Am I wrong? Any help would be appreciated.
Was chatting with Buzz tonight and discovered that Google Earth has new imagery of the area NW of Pecos and you can see many of the wells Petrohawk has drilled over the past year.
Heres an article i came across today
http://qz.com/117504/new-drilling-technologies-could-give-us-so-muc…
BHP BILLITON PET(TXLA OP) CO (old Petrohawk Operating Co.) has applied for their first permit in Reeves County today, Wed-8/28, the HUBBARD ENTERPRISES 57-T1-32 #1H, A-615, 7.4 miles NW of Orla. Later – Buzz
BHP Billiton acquired Petrohawk since Aug 2011. Beginning a couple of months ago the named operating company in Reeves County became BHP BILLITON PET(TXLA OP) CO for whatever reason. Apparently, they will no longer use “Petrohawk Operating Co.” in Reeves. Later – Buzz
Hey Buzz, does your last post mean BHP filed their 1st permit in Reeves as the newly named company? Is their any significance to them filing under their new name?
Has anyone heard of any action in the area of Section 44 Block 57 Township 3 Abstract 3036 Section 46 Abstract 3035 Buzz or anyone else I am trying to see if they are getting closer to my area or moving away? I signed with PetroHawk now BHP Thanks for your great help! JW