DCole – neat… I’m gonna have to try that!
2nd pic below about 22 miles SE of of Pecos?
Later – Buzz
Buzz you are correct!
I am beginning to think…We All leased out way to Cheap!! But WTH We/I Needed the $$$
L.L. You can look at how much land is leased and how much more needs to be drilled to hold those leases. Companies need to hold their leases first, after that it comes down to budget, how much do they have available to drill the rest of the wells in each section. Sometimes the companies will post their overall drilling program (look on their investor presentations: example - 3 rigs in an area over the next 12 months) and better wells may get their attention first for drilling additional wells.
I have a interest in a section just out of Reeves in Loving that a well that was just completed. The 24 hr. test was 354 oil & 4902 mcf. Would this encourage more drilling on this section?
Garland
LL - you could check the railroad commission website to see if there is a permit for another well on your property. Permit would be first step.
L.L. - sorry to be so blunt, but that is like asking how long is a string. Later – Buzz
In a growing play such as in Reeves County now, companies will focus primarily on doing what is necessary to hold acreage. There is still plenty to understand and uncover, so it will be a relatively slow growth curve, IMO. At the same time, when you see EOG experimenting with several closely spaced wells in an attempt to find out more on optimizations, it tends to make us impatient.
Id wait for the 30 day flow rate to have a better idea, but that number is only fair when talking about an $8-10M well. The gas price is a killer for wells with a high GOR(gas to oil ratio).
I was asked to pass this info onto you all. Looks like a new rrc contact re status of permits:
From: Lorenzo Garza
Sent: Tuesday, November 05, 2013 8:24 AM
Subject: W: status of mineral lease API: 389-32849
Ms. Gage,
Drilling Permits are good for 2 years from the date of original approval. In the case of the 2 permits for the GELTEMEYER 4-61, wells #2H & #3H, the expiration date for these permits won’t be until 7/12/2014. If you have further questions concerning this matter you can send them to the following address : drillingpermits-info@rrc.state.tx.us . The contact information on the Reeves County Mineral rights owner website is incorrect. Ms. Olson is not the appropriate contact person at the RRC to answer any of these types of questions. If you can pass on the email address I have given you to the owners of the website it would be appreciated.
At LL I agree with Buzz. There are way too many factors involved. Some could be If your lease has a continuous drilling clause in it or a horizontal Pugh clause then it might get drilled sooner than later. If your lease allows for 640 acre units then it may never get drilled. A lot of factors depend on the operator and their lease holdings as well.
Does anyone else here have acreage/rights in the lower southeast corner of section 69? I leased to Eagle Oil and Gas, but they do not have an undivided interest in that section and so cannot drill there yet. I need to know who to renew my lease with next time it comes up!
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It does make sense. This was our first time negotiating a lease, but we will be better armed the next go around. Thanks for taking the time to educate me a bit.
So Wade, is the abstract the more specific area within a section? If so, how can you determine that? i.e. out of 640 acres within a section and a lease is related to 200 acres of that?
Cynthia,
You need to provide more information about the location of section 69, for there are several sections numbered as 69 in Reeves County. Your section cannot be located by others without knowing where in particular, within which Block or Township your section 69 is located.
However, each section of land is given an abstract number, for ex. A-123,
A-324 etc. So one way of identifying your particular Section69 is by its abstract number.
I know, it takes getting used to.
I’d like ask posters to please list their acreage in the following manner if they would like suggestions/help: survey Block Section Abstract Example: T&P RR block 56 T3 section 28 east half This makes it really easy to spot on a map and then correlate information.
LL - only thing you can do is go to the courthouse and look up those that have executive rights under that acreage and hope they had their smart hat on when the negotiated the lease. Such is the plight of the NPRI owner. Cynthia - 640 acre pooling is what operators want as a standard. It’s not the end of the world but we always demand 160’s and negotiations settle out around 320’s. The advantage of a smaller unit is that if they want more acreage they have to drill more wells. The 640 will allow them to drill one well and hold the acreage while they go work on other acreage to satisfy other lease requirements. Hope this makes sense.
So sorry. It is the southeast corner of Section 69, Block 4, H&GN Survey. I could not find the abstract number, but the top of the lease says “640 acres pooling provision”. Judging from the previous comments, that sounds like bad news.
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Abstract number usually denotes an entire section but can differ when patents are awarded in the same section.
WOW! Oxy and affiliates have applied for 12 permits in Reeves in the past 8 days. Later – Buzz