Suddenly Im receving many offers for my 5 acres…well is Escarpa Roja which is currently producing gas. Description is: blk 57 t1 39. Escarpa Roja 57 t1 34. I just got a call offering 99k for my small tract…leads me to believe good things are happening there. Any info would be appreciated.
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Northern Reeves very active, and offers are usually an indicator a rig has been scheduled.
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Thanks Wade. I have never received such a high offer and figured something was going on. I have reccomended you to several people.
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Thank you very much, Susan.
I’m still getting huge offers to sell. They just keep going up. Where can I go to find out info on this area?
Susan, there is a lot of information: land records, maps, well permits, drilling reports, production reports, etc. What exactly are you trying to find out?
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I meant to say 6 wells have been permitted in March by Anadarko. Also, a well that is SE of your section was drilled in June 2018 by Anadarko has produced over 600,000 mcf and about 120,000 barrels of condensate.
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I’m trying to determine if the well is ever going to really produce oil. Right now I’m getting small checks for gas and a little condensate. I was getting much more three years ago and it has steadily declined. I dont know enough to make an educated guess about selling or holding on. Thank you for any thoughts or where I can find information.
Additionally I only own 5 acres.
I’m trying to find out if this section which contains my small 2.5 net mineral acres has any more wells started or in the works. My checks are decreasing as well as the value of the land. I dont know if this is because the gas is not being sold right now or being burned off. It is producing some condensate and I dont understand much about the difference between that and regular oil. My dilemma is whether I should hold on to this land or consider selling it.
I thought I would only get proceeds from the well in my plat. I guess I dont understand.
Yes that is correct. Usually if there is activity around you that means there is a good possibility they may come back and drill on your land. There is room for more wells in your section it’s just a matter of if the wells are economical at this point.
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Hold on to your oil royalties. It takes time and patience. I have 3 acres and a 6 acre tract Royalties have fluctuated, but I have read many articles about the riches to be discovered in Reeves County.
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So if there is already a producing well and others are started, because I’m in the plat, I would benefit from those wells too? Thank you for all your help.
Thank you so much! I’m learning alot!
Exactly. There aren’t any permits in your plat currently and you are held by production so you really have no control on when the oil & gas company will come back and drill. Only bad thing is that it’s a gas well and natural gas prices in the permian have been terrible even negative since most operators only care about oil.
Ms. Huerta,
In Reeves County there are multiple "stacked" formations over much of the Delaware Basin. The Barnett, Wolfcamp A, Wolfcamp B, Bonesprings A, Bonesprings B, and the Avalon along with one other, shallower, formation. The six I have named are all potentional horizontal wells extending sometimes as far as two miles under multiple leases. I have not spotted your section on a map yet, but it appears to me that you should hold your cards close, hang back, until you find the really highest bidder. Lease bonuses are great but getting a bigger cut off the royalties - 22.5 - 24.0% pays a lot more in the long term.
My best regards,
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Sorry, Stephen. Just found the rest of your message. I have been pleased with BHP Billiton since about 2012. The checks also show Petrohawk which I’m guessing is the "producer "? I started receiving checks in 2016 for gas and very little condensate. My land value went way up but now it has decreased. My checks are decreasing also. I am torn because I’m not sure it will ever be drilled for oil. My last offer was 99k. Thank you for replying to me.
I meant leased! Lol Dont know if I’m pleased or not!
Ms. Huerta,
Like I said, Reeves County has a respectable number of "Stacked Plays". This means that because your royalty returns are declining now from the formation it is exploiting does not mean that other formations, probably above the formation they are producing now are possibly "Waiting to be produced".
"Patience Grasshopper"! Hang in there young lady!!
Stephen Watkins
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