Ward co. Texas lease questions

Have 2.22 acre lease in Ward county, BLK 34 SECT 106. Any production in the area? Lease expired 8-28-18 (jagged peak) have another offer to lease.

Good Morning Chris. Jagged Peak has 2 approved permits for horizontal wells(API 475-37415 and 37416)/well 37415 was spud(begin drilling) on January 28, 2018/well 37416 was spud(begin drilling)on January 31, 2018. From what I have heard Jagged Peak is a good company to do business with.

Link to approved drilling permit for well 37415:

http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?methodToCall=searchByUniversalDocNo&universalDocNo=491621235&rrcActionMan=H4sIAAAAAAAAAL1Ru27DMAz8mnQUJNlKsnAwinRu0qAZjAyKTTgC5AcoGW0BfXxpFwVSp3M23vF0PFJJSQk6KalAPRFVRRVd3x0qqkt5hpn_wIsdhqAFt0WINqKIn2IMq6zYSlZoWOmX3angMpvKmpz3rmtekVoXw35E-vqxFXXPohxajNe-PvbP1nsmDBDGkbpj_4aWqitTW5B3acowdwtqghgs2fbd-hHnkJwh35hskyszIQMXbFwXTi5OZuz2Byu9wLf6xVj1uCOE3-XXMNgG6WbJfy-izuVSN4UFlTQomTL-1hxkMkysmbh__ZB7fgNCkJuMYQIAAA

2 older approved permits(API 475-36771 & 36920) on the West side of Section 106 were apparently abandoned back in 2015 by Elevation Resources

GIS Map of Ward County Section 106/Block 34 and surrounding area:

CLICK ON MAP TO ENLARGE

I find 4 major operators that have production in the surrounding area…they are Jagged Peak Energy, Occidental Permian, Cimarex and Anadarko E & P.

Clint Liles

Do yo have a good email address for them?

chris, jagged peak drilled both big foot wells. they have completed the one on the east half and have only drilled the west half. They have filed pooled units with county

Thank you for the heads up

Thanks Clint. Never knew that before.

Contract with jagged peak was to have expired this past Aug. Very good offers were coming in. Turns out though that it’s being held on a permit. Can’t get through to them. How long will this last?

i dont think your contract/lease is expired as they formed a pooled unit. It is my understanding they have drilled the well and have/are completing the well.

Don’t know if this is a good thing or not. Thank you for your help.

Thank you Joe. Any idea what the pooled unit royalties might be? Still havent heard from anyone.

Take your royalty interest multiplied by your tract acreage divided by the pooled unit acreage and you’ll have a rough idea of your proportional interest. I’ve seen differing allocation schemes depending on the operator, so the exact number may be slightly higher/lower.

Clint,

If you have 124 undivided interest in 640 acre section in Permian, and then operator creates a unit of 340 within the section, would my decimal interest go up for the well on the smaller section?

Thanks to you or anyone who can help.

L

Hello Clint, just received first royalty check from jagged peak. My question is, how often will these be coming in? The well name is bigfoot. I have a 2.22 acre interest. Jagged Peak is the operator. This is in sect. 106 blk 34 ward co. Thank you.

Hey Chris. The checks will be coming in every month unless they have problems with the well…I see where the well has produced for 3 months(June, July and August but 'No Report for September)…and they could have shut the well in because of a nearby well being fracked. The 1st check you receive will most likely be the largest check because it could e for 2 or 3 months production and then the following checks will be for production for 1 month…

If you can give me the Lease ID # from your check stub or from the production document you received I will pull up the Completion Report and Production Data for you. It will be either Lease ID # 50607 or 50661.

Clint Liles

Thanks so much. Just got to work, but will look at the info when I get home. I’ll send it to you then. So glad I hung onto it all these years. Every little bit helps these days.

Hello again Clint, As far as I can tell, the well is #10097 Bigfoot 106105A-34 41H

Link to Completion Report: API 475-37415/////////well # 106105A-34 41H

http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method=cmplW2FormPdf&packetSummaryId=197423

1,282 barrel oil per day/1,680,000 cubic feet gas per day

Link to Production Data:

http://webapps2.rrc.texas.gov/EWA/specificLeaseQueryAction.do?tab=init&viewType=prodAndTotalDisp&methodToCall=fromGisViewer&pdqSearchArgs.paramValue=|2=10|3=2017|4=09|5=2018|103=50661|6=O|102=08|8=specificlease|204=district|9=dispdetails|10=0

Clint Liles