Spur Energy update?

My wife has some interest in 7-19-26 Eddy County. A year or two ago Percussion who was the operator. Spur did extend the lease bin April 2022 but there has not been much activity. I was under the impression that they were financially solid but when I check the weekly well activity there is very little going on with Spur in Eddy county (or anywhere for that matter.) Does anyone know what they are up to? NMoilboy did say they only have one rig operating in Eddy. But lots of leases. I wonder why, at these prices.

They now have 2 rigs (shown below). They’ve drilled 39 wells in the last 2 years (pink lines below). All in the Yeso trend which is sort of the blue shaded area. They don’t own all of that, but they should have a good chunk.

I do agree, it seems like they will have a hard time holding all their acreage if they don’t get a bit more busy. You’d assume a lot of that Percussion and maybe some of the COG acreage is going to be expiring. But I don’t know.

They probably have 10-20 years of drilling inventory at this pace. I totally get it, it’s hard to live a 10-20 year development one weekly activity report at a time, but it’s a patience game.

Thanks for the info. I made a mistake in the location. It is Sec. 7, T19S, R25E. Looking at your map, this is just outside the established Yeso trend. Digging a little deeper, Spur has proposed ten wells starting in sec 6 and ending in sec. 7. Seems like they may think there is oil on the edge of the trend. There is some seismic data in the application on the OCD web site but I don’t know how to read it.

Sorry, the Yeso trend pic was more a cartoon than science. Here is a map from when Percussion was trying to sell this acreage (to Spur), note Sec 7 in their “Core” (pink arrow). I would assume you will be fine, may just take a while.

Thanks! I looked up the production history of the B&B 22 well shown as proven. Looks like it is reasonably productive, both O&G. Not sure how it compares to other wells in the area. Just have to be patient. Thanks again.

Spur Energy sent a compulsory pooling order for our unleased interest in Section 18-T18S, R27E Eddy County, NM. We have been trying unsuccessfully to negotiate a lease over the course of the last year to no avail. Their pooling order stipulates 5 wells to be drilled, the Baffin wells.

We really dont want to be unleased nor turn the interest into a working interest. the 200% risk charge doesnt sound that good either. What to do? Current offer is 1K pnma, 1/5th royalty and three year term on their lease form. Spur isn’t too interested in negotiating lease terms.

Based on the map NMoilboy so kindly posted, it looks like your holding is outside their most important area. My guess is they won’t negotiate because they have a lot of acreage they need to drill in their core area first, but NMoilboy may have some more informed thoughts.

They wont negotiate because they have made what they can probably demonstrate is an acceptable offer (It may not be what you want, but I’m sure people around there have accepted it) AND they are probably happy if you get force pooled.

If the hearing hasn’t happened yet then get on the docket to protest what you feel is a lowball bonus offer. Or use threat of protest to negotiate. Otherwise you sign the lease. Yesterday. The law is set up to keep people who won’t lease from holding up drilling. Lease or get run over. Seems unfair, but everybody should be used to it by now.

That acreage is fine. If they drill wells you will kill it on the royalty per acre at 20%. If not, well then you get to try again in 3 years (from whenever you sign this lease).

Thanks for your reply NMoilboy…much obliged.

Justinfo, We have interests in Sec 7-19S-26E, Sec 8-19S-26E and Sec 12-19S-25E. Several years ago (2015-6?) we leased with Concho and Percussion and then all of this was purchased by SPUR. So I am wondering why your wife’s interests were not picked up at same time?? We are currently receiving royalties from Rose 2H-8H Wells in Sec 7-19S-25E. I don’t quite understand why Spur/Percussion/Concho didn’t lease with you then. But then there is probably a lot I don’t understand about this system. Wishing you and family the best with your interests. Hang in there.

The Rose wells surface location is in 19s26e Sec 7. The actual acreage getting paid on those is 19s25e Sec 12. There is nothing producing in either 19s26e Sec 7 or 19s25e Sec 7.

Justinfo, Just saw your correction to the location of your interests. Sooo, forget my question. Nonetheless, good luck.