Terry County TX Oil & Gas Permits

I was just contacted by a "Petroleum Landman" from Tex-Brit concerning drilling rights in Terry County. I didn't know my relatives had property there. Anyway, is there any information on this? I have the documents I'm supposed to sign and there is a description. E/2 of Section 16, Block 4X A-474

Clint_Liles · November 15, 2016, 12:06am

David the RRCommission shows that COG drilled a well(API 445-32330) next door in 2012 called the "Red Headed Stranger' and the status of the well is now 'Plugged Oil Well'. I don't see any production any where close to your A-474 minerals.

http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=RED%2BHEADED%2BSTRANGER&univDocNo=487294661

GIS Map of Terry County A-474/Block 4X/Section 16 and surrounding area:

CLICK ON MAP TO ENLARGE

Clint Liles

David_Barr · November 15, 2016, 1:39am

Thank you. That's more information than I had before and very helpful. At least now I know WHERE it is. No telling when or if they'll start drilling. Thanks again.

Clint_Liles · November 15, 2016, 2:13am

David,

the last information I find on the 'Red Headed Stranger' well next door was that it is a 'SHUT IN PRODUCER'

CLICK ON DOCUMENT TO ENLARGE

Clint Liles

David_Barr · November 15, 2016, 2:28am

Interesting. So that well is capable of producing but for whatever reason, they're not pumping or are pumping at a reduced capacity, if I understand the term correctly.

Clint_Liles · November 15, 2016, 2:51am

David,

After a Recompletion was done on 08/15/2012 this well test showed 16 BOPD/20,000 MCF gas per day. This well was not economical to produce and it is called a 'Shut-in-Producer'.

http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method...

Clint Liles

David_Barr · November 15, 2016, 1:51pm

Not economical to produce. And my relative's lease is "next door". Doesn't sound good. Okay, thanks for your research and time spent.

Robert_Tilden · November 15, 2016, 4:38pm

Not economical to produce at $45 per barrel. When the last oil boom came to the area, the futures markets for oil were up to $108 per barrel. So at $100 plus per barrel, a 16 BOPD well is profitable, but who knows when we will see that again.

David_Barr · November 15, 2016, 5:22pm

So nothing may come of our lease for some time. Thanks.

Clint_Liles · November 15, 2016, 5:30pm

If someone has contacted you about a possible lease that's a good sign.

There are possible other producing formations/zones in this area.

Clint Liles