http://www.aogr.com/index.php/magazine/cover_story_archives/june_2011_cover_story/
ROZ - Residual Oil Zones are where it's at!
Just received lease offer in PSL Block A33 (NW of Andrews) - $300 / 25% for 3 years. How does this compare to others?
http://pubs.er.usgs.gov/publication/fs20123051?from=home
USGS Article - FYI
Assessment of remaining recoverable oil in selected major oil fields of the Permian Basin, Texas and New Mexico
Seeking Alpha transcript Q1 Concho Resources'
In the Q&A, transcript of www.seekingalpha.com for Concho Resources Q1 results - they discuss Cline Shale characteristics and Wolfcamp and Wolfberry goals and their new area in the Northern Midland Basin. VERY INTERESTING THING is that the Cline Shale (Pennsylvanian Sh.) is as widespread as the Wolfcamp and appears to be Permian Basin-wide! Matthew Hyde of Concho said "focused on the Permian are looking at a pretty broad distribution for the Penn shale or Cline equivalent rock. Depositionally [ph] , it is a more -- the term we use is clastic, which means more sand-shale sequence than the Wolfcamp, which is more shale carbonate rich. So they are a little bit different. The rocks are different, but we think they both have wide geographic extent, not only in the Midland Basin but in the greater Permian Basin."
My Take on Sandridge article by Writer Michael Filloon of SeekingAlpha.com - FYI
Great Article which describes strategies being employed by Sandridge in the Central Basin Platform and the Mississippian Carbonate Play. Great diagrams for your review and also the frack water issues and new methods for proper handling and use of frack fluids - namely water - sound very nifty. Check it out!
Happy Mother's Day!
Regards,
Ralpr
Barrons.com article by Gabriel Sorbara "Three Picks in the Permian" in the Investor's Soapbox
FYI
Ralpr
DOE sees vast energy potential in residual oil zones (ROZ)
Excellent article by the editors of OGJ - FYI.
Joy,
Ralpr
FYI - It appears that Chesapeake Energy may have sold their producing interests in the Central Basin Platform and Delaware Basin and Midland Basin to EnerVest.
"During the 2012 third quarter, Chesapeake expects to enter into agreements to sell three Permian Basin asset packages. A Purchase and Sale Agreement (PSA) has been signed with affiliates of Houston-based EnerVest, Ltd. for the company’s producing assets in the Midland Basin portion of the Permian Basin. Bids have also been received and accepted on two other packages in the Delaware Basin portion of the Permian Basin. Chesapeake is currently negotiating PSAs for the two Delaware Basin packages with the goal of entering into PSAs in the next 30 days and closing the transactions in the 2012 third quarter. Negotiations for the sale of substantially all of Chesapeake’s remaining midstream assets are also underway with GIP, which has an exclusive offer right until August 13, 2012. Chesapeake also expects to close various other asset sales during the 2012 third quarter."
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A Form 8-K regarding Chesapeake Energy has been filed with the United States Securities and Exchange Commission.
To View the filing please click here |
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If you are unable to click on the link above, please copy and paste the URL below into a web browser
Regards, Ralpr |
Here are the online reports from the Abilene, Odessa, and Midland papers. The Midland paper is probably the best, but has not updated for a couple weeks for some reason.
Abilene: http://www.reporternews.com/news/2012/sep/09/oil-report-992012/
Midland: http://www.mywesttexas.com/business/oil/ (scroll down)
Odessa: http://www.oaoa.com/sections/permian-basin-drilling-report/
http://www.chk.com/news/articles/Pages/1734237.aspx
FYI - Chesapeake keeping undeveloped, non producing acreage ~470,000 Net Mineral Acres in Midland Basin for either selling or developing later. Hopefully this is good news.
Regards,
Ralpr
SandRidge to Sell Permian Basin Oil Assets for $2.6 Billion By Mike Lee December 19, 2012 6:15 PM EST Facebook Twitter LinkedIn Queue SandRidge Energy Inc. (SD), the energy producer that has been fighting shareholder calls to break up the company, agreed to sell assets in the Permian Basin to Sheridan Production Partners II for $2.6 billion. Sheridan, a closely-held producer based in Houston, will pay cash, SandRidge said today in a news release. SandRidge, based in Oklahoma City, produces about 24,500 barrels of oil equivalent a day from 225,000 acres in the Permian’s Central Basin Platform. The sale price exceeds an estimate from John Gerdes, a Canaccord Genuity analyst based in Houston who said in a Dec. 17 note to clients that the acreage might fetch $2.5 billion. “The sale of the Permian assets at this time has allowed us to capitalize on current strong valuations for mature, conventional Permian assets,” SandRidge Chief Executive Officer Tom Ward said in the statement. The transaction is expected to close in the first quarter of 2013. SandRidge will use the proceeds to pay debt and fund drilling at its Mississippian Lime fields in Oklahoma and Kansas, according to the statement. The deal makes SandRidge “more of a bet on the Horizontal Mississippian,” said Jason Wangler, an analyst at Wunderlich Securities Inc. in San Francisco. “If that play works, so does SandRidge,” he said. Wangler rates SandRidge a buy and doesn’t own any of its shares. SandRidge announced the sale after the close of regular trading in New York. SandRidge rose 8.8 percent to $7.07 in late trading after closing at $6.50 in New York. SandRidge’s managers believe “all shareholders should conclude that this is a great outcome for them,” Greg Dewey, a spokesman, said in response to e-mailed questions. “We are simply doing what we said we would do, staying true to our brand and doing things quickly and efficiently and once again making a move that creates tremendous value for the Company and its shareholders.” SandRidge shares have fallen this year as shareholders including TPG-Axon Capital Management LP and Mount Kellett Capital Management LP call for the company to put itself up for sale. TPG-Axon, the hedge fund run by former Goldman Sachs (GS) banker Dinakar Singh, has called for a shareholder vote on replacing SandRidge’s board of directors. TPG owns 6.5 percent of SandRidge, and Mount Kellett owns 4.5 percent, according to data compiled by Bloomberg. SandRidge should avoid “any hasty strategic actions, such as the precipitous sale of the Permian assets,” until a new board can be seated, Mount Kellett Chief Operating Officer Jonathan Fiorello said in a Nov. 15 letter. He estimated the Permian acreage may be worth $4 billion. Wangler said the sale may help SandRidge win over shareholders, since it will allow the company to reduce its debt. Other analysts have criticized the sale because it would increase SandRidge’s reliance on lower-profit natural gas. “Regrettably, a Permian sale does not improve SandRidge’s long-term financial standing,” Gerdes wrote in his note. Selling the assets at $2.5 billion would have funded the company through through 2014, and SandRidge would outspend its cash flow by $1.2 bilion a year from 2014 to 2017, Gerdes wrote. He said in an interview he hasn’t had time to review his calculations based on SandRidge’s higher sales price. To contact the reporter on this story: Mike Lee in Dallas at [email protected] To contact the editor responsible for this story: Susan Warren at [email protected]
We have some royalties from the Fusselman in Andrews Co., but not like this (but we have very old well/s) at any rate I thought this might be of interest to you folks.
Ralpr
Newswest9.com article Cline Shale Could Create a Super-Boom in the Basin Jan 08, 2013 9:31 PM CST By Jen Kastner
Was just contacted about leasing some minerals in Sections 9 and 10, Block A47, PSL (A-760 & A761; About 10 miles south of Frankel) Hello Ralpr, I see you are here also. As you can see, I'm getting offers in several counties and I wish I could evaluate them better, but I'm learning.
Ring Energy plans aggresive growth in Permian Basin by Mella McEwen of Mywesttexas.com
FYI - They will target Andrews County.
Ralpr
George, I have an interest around where yours is. Who offered and what were their terms?
Thanks
We were contacted by Double Eagle. Their initial offer was $100 per acre and 3/16. That, of course is too low. We have not started real negotiations yet. I am trying to get ballpark figures on what the going rate is for this area so I can know how to deal. Anyone?
I have about 400 net acres across three sections in Block A-33, and had negotiated $650 and 25% royalty with Sandridge last year. Deal never closed because of Sandridge' decision to divest their Permian Basin assets. Anyone know of current leasing activity NW of Andrews?
Rams Head Energy is offering $750 for 5 yr and 1/4 in Sec. 7, Blk A46