Hello I have in town ship 1 section 26 and 35 both 640 acres and amits call doc holaday and we had 4 offers but 2 sections
You need to put your location in the correct order. You are also missing some information. It should be section-township-range. There are many sections 26 and 35 in Stephens county. Also, there are many offers to lease or buy out there right now. It is highly doubtful that you would own all 640 acres as there are usually hundreds of mineral owners in a section.
Did you have a particular question?
What is your question? This is going to be a horizontal well that covers two sections. There are hundreds of mineral owners in each section. They are changing the intended reservoir, so are changing the name. The previous plan was for the Woodford. Now, they plan to drill into the Sycamore. I doubt that 89 Energy will be the operator. A more experienced operator would be better.
I have a contact at 89 and inquired about this. She said they consider this unit 100% chance of operating due to controlling the vast majority of the acres in the unit. I don’t believe that is the only consideration when determining operator though, correct?
In any event, just because the company is young doesn’t mean the people at it are inexperienced. Plus, “experienced” companies often get stuck in their ways and need the more entrepreneurial outfits to come in and try new things.
No need to try & re-invent the wheel. In the oilfield I’ll take the experience every time. Just look at all the entrepreneurs that have filed bankruptcy in the last year.
Just look at all the experienced companies that filed bankruptcy too. I think oil and gas is a bit more intricate than a wheel. Without the entrepreneurs, we wouldn’t have horizontal development and hydraulic fracturing, those technologies were not discovered and developed by the big boys. They were adopted after smaller companies proved the concept.
And again, just because a company is young doesn’t mean the people at them are inexperienced. In this instance, I looked at the 89 team’s website and they are from Chesapeake, Devon, Sandridge, etc. As someone who also worked a large E&P, I personally feel better about a small organization that only has a given area or project to focus on (and probably have skin in the game and more at stake) than one where bureaucracy and politics influences decision making. I think Continental is one of the better big companies out there, technically but also knowing friends there I can assure you decisions are not always made for the right reasons. Often, these smaller companies are also comprised of the best and brightest of the experienced companies. I don’t know this management team personally, but I do know that just because a company is small and young does not mean it is inexperienced. Just food for thought!