What's the future

Texas Mineral Rights Reeves County, TX
1

I know very little about oil and gas.

We own a small small interest in Big Chief lease property in the southern Delaware. It’s partially Block 1, sec 173-175. I recently figured out it’s been a big producing property and includes about 10 sections and 32 wells. I believe it was first drilled in 2012.

It looks like there’s roughly 3-4 wells per section at this point. You can see the production jumps up when wells are added and then it tails off. For this area of Reeves county, is 3-4 wells per section about the max or will it likely add more? If it likely adds more wells, about how many wells per section is normal for that area?

It appears these wells have been accessing the Wolfcamp formation so far. Is it likely the oil company will use these same wells to access different layers (different part of Wolf Camp? Bone Springs?) when the production slows down? Does this part of the southern Delaware have other layers to access?

Is it likely this property will play out soon since it’s been producing for over 10 years now? I know no one has a crystal ball, but I’m just trying to get some sort of idea what to expect over the next 5-10 years.

Any input you might have on this would be appreciated.

2

I’d be skeptical of anyone who thinks they can tell the future, but the WC formation of that part of the world is thin from my understanding. There looks to be a few slots left, but I bet those would be child wells. I don’t think the drilling will be as dense as other parts of Reeves. We have looked at a number of deals around that area and they have been lower return drilling. Perhaps that begins to change as drilling inventory decreases.

3

thanks for the info.