Will the price of oil convince drillers to start again in Frio County?

Texas Mineral Rights Frio County, TX
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Since oil has hit $100 plus per barrel and we are cutting off the 8% we get from Russia, have any of you seen any lease activity in Frio County? I have 127 acres 4 miles south of Pearsall. Thanks, Victor Holmes

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Victor, I live in Pearsall. Oil activity was picking up before Russian war. gas is now $4/gal at HEB. I suspect oil drilling will pickup. Reynaldo Trevino

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Reality check is that it would be minimum six-nine months before any new drilling actually gets oil from rig to pipeline to refinery to tank of car. There are so many interweaving factors involved. Operators take a long view to how to carefully invest their drilling dollars. Some of the issues are lack of trained staff to safely man rigs and frac crews and supply chain issues for pipe and tubing. The independents can move more quickly than the huge majors beholden to stockholders. Was at a Mid-Continent conference last week where it was a hot topic. Big CERAWEEK conference in Houston this week. Also a hot topic. No magic switch to flip.

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Let’s see what moves when gas at the pump hits $5/gallon. Putin will double down.

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Thanks for your comments! VH

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I like your comment. Paid $4.99 / gallon a few weeks ago and filled up my truck for $113.00 for about 25 gallons. Price has dropped to about $4.60 for now. I read that drillers in Eagle Ford needed to have price above $48/ barrel to break even. Price now is over $100 so we will see what happens!

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15 drilling permits have been granted for Frio county, Texas since January 1, 2022:

16301247 01 ALLERKAMP, ERNEST E. 7 BIGFOOT OIL LLC(070738) FRIO Submitted: 02/22/2022 Approved: 02/28/2022 877315 Vertical Reenter N 4033 APPROVED
16334286 01 RUSSELL 1 MANTLE OIL & GAS, LLC(524903) FRIO Submitted: 01/06/2022 Approved: 01/11/2022 875816 Vertical New Drill N 4200 APPROVED
16334294 01 SCHMIDT 1 MANTLE OIL & GAS, LLC(524903) FRIO Submitted: 03/28/2022 878492 Vertical New Drill N 3990 DRILLING PERMIT
16334292 01 PH GREEN 1H MUELLER EXPLORATION, INC.(592650) FRIO Submitted: 03/18/2022 Approved: 03/24/2022 878228 Horizontal New Drill N 15000 APPROVED
16334293 01 PH GREEN 2H MUELLER EXPLORATION, INC.(592650) FRIO Submitted: 03/18/2022 Approved: 03/24/2022 878229 Horizontal New Drill N 15000 APPROVED
16334278 01 MIDWAY SOUTH L 136H TRINITY OPERATING (USG), LLC(870209) FRIO Submitted: 01/21/2022 Approved: 03/01/2022 875197 Horizontal New Drill Y 8000 APPROVED
16334279 01 MIDWAY SOUTH L 137H TRINITY OPERATING (USG), LLC(870209) FRIO Submitted: 01/21/2022 Approved: 03/01/2022 875198 Horizontal New Drill Y 8000 APPROVED
16334280 01 MIDWAY SOUTH M 138H TRINITY OPERATING (USG), LLC(870209) FRIO Submitted: 01/21/2022 Approved: 03/01/2022 875199 Horizontal New Drill Y 8000 APPROVED
16334281 01 MIDWAY SOUTH M 139H TRINITY OPERATING (USG), LLC(870209) FRIO Submitted: 01/21/2022 Approved: 03/01/2022 875200 Horizontal New Drill Y 8000 APPROVED
16334285 01 C CROSS RANCH 304 A304 VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 01/19/2022 Approved: 01/25/2022 875239 Horizontal New Drill Y 8500 APPROVED
16334290 01 TORTUGA 110H VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 03/01/2022 Approved: 03/03/2022 877572 Horizontal New Drill N 9000 APPROVED
16334291 01 TORTUGA 111H VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 03/01/2022 Approved: 03/03/2022 877573 Horizontal New Drill N 9000 APPROVED
16334287 01 TALON 304 B304 VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 03/01/2022 Approved: 03/16/2022 877569 Horizontal New Drill N 9000 APPROVED
16334288 01 TALON 305 B305 VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 03/01/2022 Approved: 03/16/2022 877570 Horizontal New Drill N 9000 APPROVED
16334289 01 TALON 306 B306 VENADO OPERATING COMPANY LLC(884496) FRIO Submitted: 03/01/2022 Approved: 03/16/2022 877571 Horizontal New Drill N 9000 APPRO
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