Greetings! I hold interests in the Wyatt unit as well Benedum Spby Unit, Tract 7. This is currently operated by D3 (Double Eagle) and producing small checks, similar to when JM Cox had it. However, I’ve got offers north of $450k to sell. Looking to see if anyone is getting similar or knows of permits pulled, forecasted moves by operators to go horizontal in these units etc… I don’t want to sell if they are about to pop the top, but if its going to be 10 years, I’ll do it. Thoughts? Am I crazy?
People are getting hammered in the 6 Midland basin counties with offers right now, some acreage that will get drilled this year, some that is placed in year 20 of inventory. I think DE3 will let the next guy large scale development their acreage… when that will be? Who knows. The capital markets hate oil and gas right now so I’m sure they are trying to figure it out themselves while the private equity clock is ticking louder and louder. Say your acres are part of an undivided two sections. DE 3 has 70,000 acres or 109 sections. If DE has 3 rigs running say they can roughly drill 75 wells a year, those two sections are competing with the other 39 years of inventory. Plus your acreage being held in eternity due to it being in that huge unit doesn’t put any more pressure on them to drill it first. It may be a while. I don’t think acreage held by production in eternity in those huge units is high on the list unless the operator farmed into the acreage with a continuous drilling obligation.