Wade, I saw in your example to Cynthia an indication (east half) that I assumed reflected a specific area within a section…so I was curious about that? If a permit does not provide that level of specific info does that mean that an oil company can drill on any of the 200 acres within a section if a lease is just related to 200 acres? My bet within a pool situation as most horizontal wells are that it gets complicated.
A permit will designate so many feet from the boundary lines of section such as 330 feet from east line and 1280 from south line. So a permit will be very specific. You note that if an operator leases your 200 acres, they will do their best to lease an entires section or contiguous acreage that will give them enough acreage to drill enough wells to make their investment viable. I was told by an operator recently that a lateral well they are drilling on some of our acreage was costing 9 Million. Another thing to consider is that all the laterals in reeves are being drilled in a north/south orientation. So if you have acreage in the northern half of a section, they are Lso going to need the south. The land situation with oil and gas is like a many layered chess board with many players you never see and everyone is trying to get the bat deal for themselves. My dad used to say he felt like he was always juggling 8 bowling balls and every once in a while someone would turn out the lights.
Not always the case of north-south laterals. Most of the wells drilled in the H&GNRR section NW of Pecos are east-west. Not sure why other than the sections are not laid out north-south but at a 45 degree angle. I’m sure there was a reason when the original land survey for H&GNRR was done.
Thank you Wade for taking your time and providing a helpful description!
Paul – quite a nice breakdown of 27 pages of items of interest to this forum. Later – Buzz
Paul - interesting. I do remember seeing a number of them that do go east/west now that i think about it. out of the office for 4 days now in Denver visiting with an operator and a conference. apologize for the misspells and typos in previous posts. typing on iphone drives me nuts sometimes.
Dcole – yes, W-1s… be sure you enter “Submitted” Dates. Later – Buzz
Petrohawk 2013 Q3 financials released today http://www.bhpbilliton.com/home/investors/news/Documents/2013/13110…
Operating revenue from oil and gas up almost $340 million for the current quarter, year over year.
Evaluated oil and natural gas properties (full cost method) increased by $1.3 billion for the current quarter (July-August). There was no charge to expense for the quarter for costs exceeding the discounted net revenue from proved reserves.
“During the quarter, the Company continued to make modifications to the number of rigs within our rig fleet. As such, we incurred costs of approximately $61.4 million associated with the early termination of select rig contracts.”
However, they still have over $583 million in drilling rig commitments over the next 5 years.
They also state they continue to “pursue a possible divestment of certain land in the Permian, including acreage in both the Delaware and Midland Basins, for which no sale has yet been agreed.” This is the Scotia Bank deal discussed earlier on this forum.
Buzz - are these w-1 permits? I trying to find them. Thanks.
Fred, thanks for the info and found your property (thanks for providing the needed information, wish more people did this). Please keep us advised on this since I see no producing or permitted BHP/Petrohawk wells in the area that don’t already have BHP lines to them (or close by). BHP has an existing major north/south gas gathering line in Section 5 to the east of your section on the eastern border. Not sure what is up.
Has anyone on here heard of a company that changed a well from horizontal to vertical? My dad called BHP yesterday and was inquiring about the status of our well(38933564). It was spudded Mar 11 of this year. RRC says it was completed May 7. What happens to the spacing they filed? Is this a negative thing? Thanks
BHP Billiton’s Former Oil Chief Yeager Expects More U.S. M&A
[http://www.bloomberg.com/news/2013-11-07/bhp-billiton-s-former-oil-...](http://www.bloomberg.com/news/2013-11-07/bhp-billiton-s-former-oil-ceo-yeager-expects-more-m-a-in-u-s-.html)
Later – Buzz
Received an interesting call today from a contractor wanting to conduct a survey for a N/S pipeline. They work for Petro Land Group and the investors wanting to build the pipeline is Red Willow Corp. Sounds like interest in a gas pipeline. My land is AB4061 Blk C-18 Sec 4 w/2 se/4.
Great forum; thanks for all the insight. Fredk
Hector – I see Oxy’s 389-33142 HEARD 68 #1 vertical well completed Oct 7, 2012 as an oil producer in the Collie (Delaware) Field. Oxy has been actively developing that field mostly S of you and S and SE of Pecos. Just looking at a surface map and the activity on both sides of the river E, SE and S of you, it is a bit surprising there hasn’t been more close-in activity around you. Sorry, not much help… Later – Buzz
George-RRC shows no change to vertical on the well. BHP does have a gas pipeline to the wellhead, but there is no production from the well under the Production Query. BHP filed a G1 on August 15 but no G5 (IP) filed yet. Give it time.
Wade or Buzz, I own acreages in Reeves County Blk 4 Tract 68 AB 1154 Blk 4 Sec 68 H&GNTR. I leased to McDonnold Petroleum two years ago. I guess my question would be, is there any foreseeable activity forth coming to my area? Oxy drilled next to my land about a year ago Heard 33142.
Hector, there is also a permit approved in that section for an injection well in the last two weeks . Maybe a sign of things to come?
Thank you gentlemen for your info. I’ll keep my fingers crossed. Hopefully this is the good sign I’ve been waiting for.
Question: I can see how wells would be spaced at 40-acre spacing on a 160-acre tract. I can see how 10-acre spacing would work. These two spacing would result in neat equal size squares. But what about 20 acre spacing? There 8 service areas would be odd shaped. Using 9 wells results in 17.78-acre service area. This would result in a difference in allowable acreage per well of over 10% . Please forgive if I do not have correct facts as to well spacing, terminology, etc.
Thanks Buzz, the article sound encouraging as there has not been much mention of BHP activity in this discussion recently. As the permit and our lease have one more year, we will hope that something happens in the next 9 months.