A well was drilled on our minerals in October 2015. We just found out about it yesterday. Do they not contact mineral owners when a well is drilled? The well showed it made 950 bbls. In 24 hours, then they capped it. Was this not enough production in Reeves County? Question is are they capping wells until price goes up, or do they cap them because it is a bad well or both? We can’t get any information.
What is the name of your well? Mine is Escarpa Roja.
Hello Janet and Susan,
The name of the 1st and only well drilled on Reeves Co. Section 48/Block 5/A-5635 was Affirmed 48 1HA.
Link to approved drilling permit for API 389-34877:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...
Clint Liles
Janet,
I checked for Production data and found nothing.
http://webapps2.rrc.state.tx.us/EWA/specificLeaseQueryAction.do?tab...
Some of these wells show up as a Shut-in-Producer. But not this one. This link to the Completion Report shows this as a good well:
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method...
946 BOPD/1,880,000 MCF gas per day.
Clint Liles
Yes Clint, mine is in a different area and supposed to be producing also but have not received anything...keep being told "another couple of mnths" by BHP
susan,
What is the Section, Abstract and Block # of your well? Also, do you know the API # of your well? I will check for production numbers.
Clint Liles
Sec 57 B 34 T1, I thought I had the API# still looking.
API is 389-34841. Thanks Clint!!!
Susan,
The correct description is Reeves Co. A-614/Sec. 34/Blk. 57T1......
This is a gas well drilled by BHP Billiton. They are a very large company and it wouldn't surprise me if they have this well shut in. Completion Report showed 3,173,000 MCF gas per day.
Link to completion Report:
http://webapps.rrc.texas.gov/CMPL/viewPdfReportFormAction.do?method...
No Production Data found on this well:
Clint Liles
Gas well? I was led to believe it was an oil well. Would it ever be converted to oil? Shut in... does that mean they are not actively producing or selling from it? I still have a lot to learn!
Susan,
My guess is that it is shut in and they are not producing from it at this time until natural gas prices increase. It could only produce oil from a different formation as apparently there was no oil in the WolfCamp formation right there.
Clint Liles
Thanks Clint for all the information. I am educating myself as quickly as I can. Just sad that I was basically told it was being drilled for oil... I am sure that gas doesn't bring near what oil would and probably doesn't last as long.
Susan
I'm no expert on production so take this for what it's worth, but from what I've seen BHP Billiton initially calls nearly every well they complete out there a "gas well". I think there are reasons they prefer to do that and the Railroad Commission apparently lets them get by with it. Just like they can get by with waiting months after a well is completed before they file a completion report.
The completion report Clint found for you says that during the 24 hour test the Escarpa Roja well produced 3173 MFC/day of gas and had a Gas-Liquid Ratio (CF/Bbl) of 3110. Knowing that I think you can find out how much liquid (condensate or oil) the well made during that test by dividing the cubic feet of gas (3,173,000) by that Gas-Liquid Ratio
(3110) and you get 1020 barrels per day of liquid, which sounds like a good oil well to me. It does look like they had to use a pretty large choke size to get that flow so they probably will produce it at a lower rate but it still sounds like a good well.
You ask the question...Would it ever be converted to oil? I think the answer there is that the well can't physically be converted from gas to oil but at some point it's classification on RRC's records could be changed from a gas well to an oil well, but I don't think that should make any difference to you, unless there is something in your lease that says the operator is supposed to pool or do something else differently with a horizontal oil well than they are with a gas well. The real question seems to be, when it's producing is it going to make some valuable liquids along with a good amount of gas, or just dry gas.
Susan, Section 34, Block 57, T1 is in the heart of one of the most valuable onshore oil plays in the US. I have seen acreage in that area lease for over $5,000/ac, even in these depressed commodity prices. Feel free to send me a private message and I would be happy to provide further insight, but that acreage is extraordinarily valuable.
Janet, I would be very hesitant to sell the minerals to someone that made an unsolicited offer. Further, that is a very productive area of Reeves County, and 950 bbls in a 24 hour period is a phenomenal well... If your well is temporarily shut in, it may because they are waiting for commodity prices to bounce back, waiting for a pipeline connection, or any number of reasons that do not impact the long term value to you. Shale wells decline a lot in their first year, so it is ideal for an oil company to be able to sell that strong initial production at the highest oil price possible.
If you're considering selling, I'd recommend that you reach out to one of the mineral advisors that sponsors this forum to get their take on the value of your offer relative to what they've seen in that area. http://marketplace.mineralrightsforum.com/ad-category/minerals-management-consultants/
Dusty, thank you so much for your info. This gives me enough to use to become more informed on how all this works!
Texas Comptroller CONG reports volumes - oil company may or may not be reporting as pending on RRC site, but must report to Comptroller and pay severance tax. Use permit number before RRC lease number assigned. When using RRC lease number, of only 5 digits for gas then you add 0 in front of lease number to be 6 digits.
BHP Escarpa Roja -
Go to Gas Lease
Use permit 805366 and dates 1511 & 1601 and Reeves
Nov 2015 - 22490 bbl (called CN for condensate) and 39989 mcf
Dec 2015 - 21300 bbl and 2734 mcf
Manti Tarka Affirmed 48
Permit 806692
Oil Lease (no gas reports)
Nov 21550 bbl
Dec 9558 bbl
Jan 9855 bbl
Well now has RRC lease # 47299, so subsequent Comptroller reports should use that
TennisDaze
I'm very interested in what you posted. Think it could help lots of folks who are waiting on well results.
I ran into a problem the first time I tried following the steps you gave but figured out I wasn't understanding what you meant by "go to Gas Lease". When I realized you were talking about the section called "Lease Drop - Natural Gas" it all worked.
In checking some other wells it looks like where the operator calls one a gas well both the gas and condensate numbers get reported the same place but if it's called an oil well the oil volume may show up under the lease drop-oil section but also have gas volume reported under the gas drop.
If someone wants to try it the link to the site is
https://mycpa.cpa.state.tx.us/cong/loginForward.do?phase=check
Thanks for sharing this. Seems like the kind of thing that should get posted on the front page of this site if there's a way to do that.
Janet,
I'm familiar with the activity in the area. I can answer your questions and outline your options while this information can give you great advantages. My personal email is lazarallen84@gmail.com