I know lots of y’all have Alpine High acreage since I’ve seen it lamented a few time here, but thought I’d share what looks to be good news. Natural gas prices seem to have renewed the interest :).
What does it end up being? Probably a loss to Apache of about $40m.
I mean, who knows, but a bunch of 10k TVD what…4-5BCF wells?.. with a bunch of water and perhaps a bit of condensate doesn’t seem like much of a way to make money. Especially come 2024-25 when Whistler is full and takeaway is tight, WAHA diff is huge, and your transpo is through the roof. Glass half empty admittedly.
There’s a price where that all works and its a ton of acreage (that’s expiring). So never say never. Does also mean the odds of anyone’s specific acreage having any part of this is real low.
Reeves_Rancher, why do you say 10-12 wells? Is this from the same press release Tracy mentioned? By chance, do you know of any other landman or operator showing an interest to lease or buy minerals in south Reeves, beside Apache? Thanks.
They did actually get approved permits in the Bonsai State Unit. Approved in early May. Block 71. Seems a good place to start as the existing well made 6.5 bcf in two years and is still rattling along at 6mmcfd. From the Barnett/Woodford I guess.
A lot of the rest of it looks like poop. Natgas at $8.5 today kinda makes everything gassy start to look better.
Just an estimate based on the $100 million figure. Not sure if anyone else is ready to jump into this area, it is structurally complex and I think only Apache has the seismic data, infrastructure is limited and mostly owned by Apache (Altus). It think it is very telling that Chevron hasn’t done anything to develop its checkerboarded acreage in the area. Sorry to be a negative, where is your acreage located? Maybe it has other potential?
I’m not seeing any permits yet but will be interesting to watch what “a minimum of $100 million” ends up being.