Perhaps someone could get rich fast by approaching these oil companies who are applying for drilling permits.
Someone may could approach COG and tell them:
“Hey, I can see that you’re about to drill a new well over on Section 120” … I’ve got a great savings offer for you if you can cut me in on a portion on the that 8 million dollar drilling budget"
“Give me a million of the eight million and I could save you seven million by informing you that there is no oil down that hole”
Hahahaha !
I know I am not one of the “wise scholars” because I have never said “there is no oil in Terry County”. where I stand is about 100 yards due west of the well photo below. our lease is tied up with w&t. I wanted more than anyone for the well to be a winner. I was told by someone “that was in the know” that if it hit like they thought, there would be one of these every quarter mile through their terry county lease. Now I can’t even get a call back from him…so tell me why I should be excited.
One of the landmen who is trying to sell Shell’s 281,000 acres of leases said they’d changed their strategy - they’re going for less risk - they bought a lot of Chesapeake’s leases further south in proven areas (so much of eastern Terry and Lynn that they leased is unproven). They’re moving rigs south, and will use the capital from selling the leases to operate down there.
Something else I learned at a Royalty Owners conference last fall was that the profitability of a well can vary by 70%, depending on the expertise and efficiency of the Operator (and probably throw in a little luck!). That really made an impact on me, so I’m less impatient now for Callon to drill on our lease in Lynn county — I’m glad they’re waiting and monitoring what others are doing…all to learn how to do it better.
Right on brother!
thanks Paige. It has been a roller coaster. I hold out hope that it will improve, just about every time it looks promising, it goes south. Just looked at the well in Section 120 Block DD and I know the mineral rights holder. will be able to keep up with what is going on with this one…will keep you posted.
So why did Shell sell???
BTW, well was vertical, 12,200-feet drilled depth.
Question:
Approx 5 days ago, COG Operating LLC applied for a horizonatal permit to drill 10 miles SW of Brownfield, to a depth of 12,250 ft.
That’s Section 120 Block D11.
We all know that drilling a horizontal well to that kinda depth costs in excess of 8 million.
Since many of the wise scholars on this forum opine that there is no oil in Terry County, I wonder what they make of all the numerous new permit application being submitted every day.
Do these ppl know more about the formation below the ground, than the companies who are applying for these drillig permits or is everyone just throwing out a bunch of smoke screens ?
RHH - I have no idea if your well was vertical or horizontal, or how deep, but one thing I learned from the Callon Petroleum 2012 Results conf. call last Fri. was that they are ALL still learning about the “new” Permian Basin, and how to drill profitably in the shale. Callon ‘temporarily abandoned’ one of their Borden county wells (that didn’t deliver the hoped-for results) in order to learn how better to operate with the new technologies and shale.
Additionally, I was told by a small O&G operator 2 weeks ago that, “often things are not what they seem” in the oil patch. Frequently what seems a negative based on the limited info or rumors I have is not that at all — there’s usually a lot more to the story, and it may not have anything at all to do with the results they got. His admonition proved true when I heard the ‘real’ story behind why Shell is selling their Terry and Lynn county leases.
All this to say, “don’t give up hope!” There very easily could be other forces at play, and the operator will come back at a later time and do great things with your well!
Hang in there - and best of luck!
David, a landman can only know as much about if the company is going to drill has he/she is told by the company, some are closer to the engineers and company men than others. However, while speculators buy leases simply on the hopes of flipping them for a profit, operators don’t typically buy leases that they have zero intention of developing. If they buy a 10,000 acre block of leases, they plan to develop all of it, but if they drill several dry holes or worse poor producers early in the drilling program, chances are they aren’t going to spend the money to attempt to develop the rest. A few years ago, I worked a lease play for a company that had every intention of drilling, but a law suit with another operator in the area put them in grid lock for so many years that many of the leases expired, they finally drilled on the few tracts they had left when the suit was resolved. There are many variables that effect drilling.
TO RHH AND OTHERS WHO ARE INTERESTED IN THE WELLMAN AREA.
I HAVE MINERAL OWNERSHIP 1/2 MILE EAST OF THE WT WELL IN SEC 23
THESE ARE LEASED TO WT AND WILL EXPIRE THIS COMING OCT.
I AM WONDERING IF PERHAPS WT HAS A LOT MORE ACERAGE THAT IS EXPIRING WITHIN THE NEXT 12 MO… IF SO, PERHAPS WT IS SHUTTING DOWN AND KEEPING QUITE UNTIL THEIR ACERAGE POSITION IS NAILED DOWN… THIS COULD BE ONE OF THE REASONS FOR THEIR
RELUCTANCE TO CONTINUE DEVELOPMENT AND/OR PROVIDE ADDITIONAL INFORMATION.
I agree with Paige Johnson whole heartedly, you do not want to be first and you want the best operator to drill your well. I have 5 wells that are about half of what they could be, as compared to wells drilled 5 years after by different operators within 2 miles… You don’t want a to be a pioneer.
So actually how much info do’s a landman have as far knowing if there actually going to drill on your lease or was what he told more to just get the lease signed.
are we beginning too have fun yet fun is good money is better I have only found where Empresa only sold 20 precent of many leases in terry and hockley to 3 other oil co that where Empresa makes there money not in production
you want to see hold your lease and when it expires go to county clerk office look at the lease map on the wall back by mens room,ownership map terry county. robert I agree with you. time frame and knowledge of what is going on plays a big part in all of this oil stuff
Of you really think about it, all the recent drilling activity is new territory for everyone involved(drillers, oil company, frag crews, exploration companies and even mineral owners). It takes time to see real results. Technology is so much better than back in the 60’s, 70’s & 80’s. Sure there will some disappointing results, but not as many as in the past. I really think that much of the slow down in production is due to transportion issues. Why spill your production results until you can be up running. Hortizonals should produce 3-4 times the amount of oil as the vertical. Just my humble opinion of course. We need to be patience even though we really want to know yesterday!
I believe what we have at issue here in Terry County, is the knowledge and expertise of the geologist rather than the formation.
Note that everytime we see a successful drill in the shale formation, (meaning 200 bbls plus) the well is always associated with the name Tag
COG Operating LLC.
Those guys never seem to have any problem drilling highly successful wells in Terry County. If you don’t believe, conduct your own research on the RRC website. It would appear that those guys are getting rich while everyone else is talking about leaving town.
Just think; Texland is always there to purchase the minerals that the hugh oil companies abandon. Wonder how the owners of Texland got so filthy rich doing that ?
Under par -
No question is silly when you’re learning! That’s what this forum is all about - our learning from each other.
There may be other explanations from others more knowledgeable, but offhand I’d say the 2 companies are operating on different leases within the same section. Ex. - one could be in the northwest corner, and the other in the southeast corner. Or their permits could be for different depths. There may be additional reasons. Depending on the spacing allowed, there could be numerous operators on different leases within the section of 640 acres.
TO DUBOSE…THANKS FOR THE INFO…WILL DO
I just read an article in the Dallas Business Journal about the Bakken shale, and thought this point worth keeping in mind as we get impatient for ‘more, faster, better’:
A graph of North Dakota Oil Production starts with approx. 45mil barrels of oil produced in 2006, then up to approx. 48mil in 2007, approx. 60mil in 2008, 80mil in 2009, 118mil in 2010, 152mil in 2011, then skyrockets to just under 250mil in 2012. Very slow and gradual upcurve until 2012.
I believe this whole experience is going to teach me to be more patient - I’d rather have ‘more in the long-term’ than ‘less, but now’.
Silly question. On Section 120, block D11, there is also a vertical well permit from a different operation company, Red Willow? Is it possible to have 2 operating companies on the same piece of land?