Reeves County, TX - Oil & Gas Discussion archives

Two WolfBone wells drilled originally by J.Cleo Thompson on Sec.258 Blk.13. We are very pleased with the way the wells have held up and looking forward to a HZ well being scheduled for April by operator, OXYUSA

J Cleo Thompson has two horiz. wells permitted on section cornering where I have an interest south east corner for me north west corner for him.

Just a general question. I have a lease expiring later this month that has an option for a 2 year extension. If I have not heard from the company and do not have a check in hand by the day after the expiration am I free to re-lease the minerals to whomever? I would like to lease for better terms than the present lease. Donny

Any have info on how I can contact keystone need to determine if they have or going to release acres

Ronnie, to contact Keystone you have two choices. Contact Linda Smith , Land Mamager at the home office in Irving, Texas, phone 972-444-9549 or contact the landman in the Midland office, ph 432-6848535,

Donny thanks for info if we ever meet I owe you a beer /coffee

Marian, not sure of your question, but. To determine your share of royalty when sharing acreage under a permit simply divide your acreage by the total acreage and multiply by your contractual royalty. Simple example - you own 300 of 600 acres in a section under a division order and your contractual royalty is 25%. Your share of the royalty would be 12.5% of the production. Now as to how that relates to the money you get for a lease, the two are not related so there is no answer. Perhaps I don’t understand your question.

John, check further into KEW. Do they actually do the drilling, or are they a lease broker of sorts, leasing properties then selling the leases to oil companies? You may wish to speak directly to an oil company. Is there any record of KEW actually drilling a well? Let me know if you’re aware that they have. I’d be interested to know.

John, my wife also has mineral in sec 21, Blk C17, which are leased to Keystone and the did extend her lease for two years. The well was drilled by Petro-Hawk, now BHP Billiton. My wife received a well distribution on the well back in April 2013, but it has not gone into production. In my last correspondence with BHP in Dec 2013, I was told the well was undergoing “further evaluation”. To date I have not been told that I was abandoned, but I his might just be a matter of semantics . However in earlier comments it has been reported that leases in adjacent sections to sec 21 have either been extended or made. I interpret that to be that there may still be hope for the well. Only time will tell. Donny

RE: Block 13.

Look up

Wolfbone Oil-Saturated Super Sweet Spot, Southern Delaware Basin

Lynn – I couldn’t pull up anything… more hints please. TIA – Later – Buzz

Question on sec 21 c17. I have read in the forum that well was drilled, but it has been abandoned. I had my lease with KEW and it runs out at the end of feb. will another company be trying to lease in this sec. Also how much would you think you could get per acre. Thanks

Lynn – here’s a direct to that original presentation from 2012.

WolfBone Play Evolution, Southern Delaware Basin:

http://www.searchanddiscovery.com/documents/2012/10412fairhurst/ndx…

Later – Buzz

Donny, our BHP landman said we would know if we got an extension only by a check (sometimes they notify you by mail). He said if there is no check by the last day of the lease then we are free of the lease contract. Thanks Paul for your attempt at my question. The permit related to our lease crosses 3 sections, per my math that is potentially over 1890 acres, no telling how many other leases would be involved (I.e.per this site I see some folks have 30 or less acres) even if only half of those acres were used for a horizontal well. So, just curious if a horizontal well does go into production but that production goes down fast, and 25% royalties are spilt in so many ways, with a lease coming up, if no extension happens, would it be better to sell ??

Thanks Buzz.

The “Sweet Spot” report used the slides from the presentation you reference. The slides, (pages) 23, 27 illustrate the area in which the

'Sweet Spot" occurs. If one draws an oval centered about three sections

to the right of Block 13, about 12 sections wide and twenty sections

long, the long axis of the oval parallel to Block 13, the same slant, is pretty much the area of the Sweet Spot.

Now recall that Clayton William’s geologists estimated that there is some

400,000,000 barrels of oil in place per section, Clayton Williams holdings

being just south and some overlap with EOG’s holdings (now held by Rosetta) of the report.

EOG estimated 213,000,000 barrels of oil in place per section.

The mineral rights owner’s perspective is different from the producers’.

The $7700. per acre is an estimate on the royalty paid on just the extraction of just what?, say 3% of the resource in place from one play of the stacked oil plays.

And underneath those, not economic at present, stacked gas plays.

The Railroad surveys were for proposed Railroads which would be given every other section of land along the route upon completion of the railroad.

Now Texas, not being part of the Louisiana Purchase, used different survey methods then which most of the rest of the nation is familiar with.

A different origin, and an interesting history.

In other words, the federal and state governments basically bribed railroad companies with titles to land in order to get railroads built across the wilderness.

And the Americans did that impossible feat.

Clayton Williams Energy Provides Operations Update, Feb 4, 2014

… Wolfcamp ‘A’ - peak 30-day production from nine wells averages 676 BOE/D, with last five wells averaging 886 BOE/D…

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Later – Buzz

wondering how the strange shaped blocks re. 13 and others came to be this shape as opposed to the square ones.

Billy – I’ve wondered that too… that’s BLK 13 H&GN RR CO survey. Notice the rectangles are perpendicular to the direction of the railroad (SSW) from Pecos toward Balmorhea… that’s the only thing I can figure. Later – Buzz

Lynn – I like your summary. One point for others, you reference “EOG” as standing for Eagle OIl & Gas… not to be confused with EOG Resources whose stock symbol is “EOG” and is operating in northern Reeeves 15 miles south of Orla. Too, isn’t the 'Sweet Spot" a study of the vertical Wolfbone potential and now the Wolfcamp itself is becoming the emerging horizontal play. That’s enough… I’m already too deep into my geology! 44 rigs now drilling in Reeves, 2/3s S of I-20. Later – Buzz