Hello y’all!
I’ve owned acreage totaling about 300 acres in this area and just received a 3 year lease offer. NW/4 Section 5,Block 35,T4N It amounts to $1,000 per acre @20% royalties. Last time I got a lease offer was around 2015. I thought Wolfcamp was basically dead in this area, is it picking up in Dawson, or are they exploring another shale level?
Thanks muchly!
Most the drilling HZ drilling nearby is in the Dean (which I just think of as the bottom of the Spraberry but I’m not a geologist), which isn’t technically the Wolfcamp. But the landing zones from Mid Spraberry to base of Wolfcamp B is the main action going on in the Midland Basin…so if you think of that as “the Wolfcamp” then this is part of that. It’s just that not all of that interval seems to work in Dawson.
Thats my amateur not a Midland Basin person opinion. Buyer beware.
Two Arod wells in Sec 2 of 36T4N are both in the Dean and both pretty good.
Hi Caesura, my sisters and I have 160 acres nearby in far south east Terry County, also on the edge of Wolfcamp from what I’ve researched. We have leased it 2 times over the last 10 years, but no drilling.
Can you share who your lease offer was from?
Thank you!
Who did the offer come from? MCM?
Okay thank you for that response! Part of the lease agreement states the ground water would be free of use. I understand the water is necessary as an agent to get things flowing and free use is the norm. Has anyone successfully leased out and gotten compensation for the ground water as well?
Also is there a way to pull the numbers on the aforementioned wells (Arod).
The Arod well numbers are below. There is also the Gemini wells that are ~3.5 miles to your east that are also pretty good. I can’t find the Gemini production numbers on the RRC but CONG shows they have produced 514,000 barrels from July 2022 to September 2023.
Thanks so much Kyle! I know finding oil even in a good zone is chancey for sure! Has the technology improved any over the last eight or so years as far as horizontal?
South part of Dawson County has been active. Yes, technology improves. Looks like you also have water right of your acreage. Negotiate a price for your water right in addition to your mineral rights.
Go for 25% and make sure you have a good “no cost” clause based on “gross proceeds” or “gross amount realized.” Some companies will tell you that the lease includes a no cost provision but it really doesn’t. We now use our own lease and update the clauses as the law changes. It has been well worth it.
Just came to my mind that with the current activities on lithium, the produced water may worth more than the water carrying the general purpose. Be aware of the tricks and have a professional to go through your asset.
orange circles on the image show leasing around your minerals since Jan 2023…Gemini wells are 3 sections due east of you… true vertical depth on the wells is around 8,600 feet…
Just an FYI, I am one of your neighbors to the north (section 44)
Thanks so much for the information all of you!
KyleL: Thanks, I have located the Arod and the Gemini wells and I do see I’m about 2.4 miles from the Arod and about 2 miles from the Gemini location. I know the oil game is all speculative but hopefully being right between both locations offers promise!
NMoilboy: I did some research on the top oil producing companies in Dawson county, of which SM energy is one that operates in South Dawson. From their Q3 2023 Earnings pdf, I do see they acquired a good chunk of land in South Dawson and it seems they are targeting the LS/Dean horizons. So that checks out with the results from the Arod production.
MY_PE: Yes, thanks! I know leases can involve huge amounts of water. George_D_Cat: Thanks on that information and it is really eye opening on how they well try to find ways to avoid paying royalties due! Is Texas pretty protective when it comes to royalty owners (I’ve read that some states have passed legislation in that regard).
Calvinoil: Thanks so much for that illumination on the Gemini! At that depth that would put them in the Dean area?
The Gemini wells are 8600’ deep or so, Arod is 9000’ deep. The Gemini well numbers are “1DN” and “2DN” so pretty sure they are in the Dean. In my simple non-geo brain if Dean works at A and Dean works at B, and you are between A and B, chances are you have a shot.
according to Enverus database both Arod and Gemini wells are in Dean…
Well, I was digging through old documents pertaining to the land titles and I came across another section of minerals. From the description it is at T5N, Section 43, Block 35. the GIS map has it notated as A-134 if I am reading this right? Looks to be maybe a couple of miles north of the plot at Section 5, T4N. Looks rather barren and undeveloped to the east, is there anything going on up that way?
Thanks yall!
Section 43 is just northwest of Section 5…there has been at least one lease taken in Section 45 by CGS…map attached showing wells in area with Section 43 highlighted in yellow…
Thank you for that! Hopefully EOG sends a lease offer!
What subscription service shows leasing activity like that on the map you shared?
How do they determine net mineral acres? I think it should be total gross acres /X number of mineral owners correct?
Say it’s 200 total acres split between 4 mineral owners then that would be 50 net mineral acres each correct?
If they are coming up with an odd net mineral acre per owner is that a red flag?
Thanks and happy weekend!
