I have seen several comments about CGS leasing and permitting, etc., in Dawson, Gaines, and Andrews.
Many ideas as to who they were working with as they just seemed to appear.
I can tell you for a fact it’s EOG.
My wife has interests in all of League 268, and the contiguous 5 Labors in 267. Many wells have been drilled over the years on this acreage (something like 65-70).
She received division orders yesterday from EOG on leases covering about 2,000 acres of League 268 formerly operated by EXL.
Looking at the GIS info, CGS is the operator of record as of March 1, 2020 on all wells involved…so CGS is EOG, or at least that’s who’s paying her.
I’m surprised the Assignments from CGS to EOG have not been filed yet, but I"m sure they will be soon. The other day, somebody posted about the J. Cleo to EOG assignment having been filed recently in Dawson County, and that document, over 100 pages, includes substantial leasehold in Gaines County.
Also, I recently spoke with a royalty owner who said he asked the CGS landman directly if they’re working for EOG, and they told him yes. I’m guessing CGS/EOG have leased most of what they hoped to lease in that area, and the veil of secrecy is no longer as important. And, given the current price environment, they may not be too worried about other people following them out there, other than the usual scrappers trying to find small, unleased acreage that EOG left behind. Should be interesting to see what happens in the next few years!
Change of operator from EXL to CGS was just effective in March, and these D/O’s from EOG show up in less than 6 weeks. A little different than dealing with Lario over in Martin.
J Cleo also operates on her acreage, as well as Sunoco, Mammoth, Endeavor, Saber, and White Rock.
As I said, she has interests in all of League 268, and the contiguous Labors 1,10,11,20,21 of 267.
After looking just now, EOG apparently has the other 20 Labors of 267 as they are the named operator of every well you click on.
When drilling does finally resume, we’d love to see them (EOG) come in and wine rack this entire acreage. A bunch of verticals have been drilled over the years, some good and some bad, but the one HZ (of any length) on this acreage EXL did mid-year of 2019 (which I believe to be a Wolfcamp A) is awful as far as the W-2 sheet of the completions report. Haven’t seen a dime from this one 'til yet, nor a D/O obviously.
Geologist friend in Midland tells me to watch the Dean around here as he’s heard of some 1,000+bbl HZ wells fairly close by. He also says Fusselman over on east side of 268, where there’s been some 4-500K bbl verticals, (his research leads him to think) is fed by the Penn Shale and this is what EOG is after, similar to them being a first mover in the Eagleford…thus the cloak and dagger using a 3 year old LLC in Tyler buying leases/acreage.
Too bad it’s probably 2 years away at best…everything is HBP so they don’t have to be in a rush, nor should they be.
Best,
DB
Proshop225. Do you have any information or opinion about Oxy’s similarly mysterious leasing of minerals in Gaines county partially depicted in this image?