As a mineral owner in the Eagle Ford, Vine Royalty likes to stay up on trends and happenings in the shale. Below is a list of moves made by the big operators in the Eagle Ford. Let me know what you're seeing.
- Dallas, TX- based Exco Resources Inc, a U.S. Oil & Gas producer announced on its third-quarter results, they will be suspending oil exploration in the Eagle Ford shale for the remainder of 2015, because of low crude oil prices.
- Houston, TX- based Cabot Oil & Gas Corporation, an independent Oil and Gas company released its third-quarter results, and is currently operating 3 rigs in the Eagle Ford Shale, with plans to 1 rig by the end of 2015 in response to current lower commodity prices.
- Houston, TX- based Noble Energy, a global independent Oil and Gas exploration and production company, anticipates exiting the year with 1 operating rig in the Eagle Ford shale.
- Irving, TX-based Pioneer Natural Resources Co., a large independent Oil and Gas company, expects to have 6 horizontal rigs in the Eagle Ford shale that are expected to keep production flat over 2016-2018 period compared to the third quarter of 2015
We are with Chesapeake. Any news on them?
You can get a good idea of CHK's plans for Eagle Ford trend by checking their latest investor presentation on their website
Hi Beverly, I hope you find this useful.
Oklahoma City, OK - based Chesapeake Energy, a U.S. oil & natural gas producer announced on its third-quarter financial and operational results (Eagle Ford Shale), they have placed 30 wells on production, compared to 89 wells, a 66 percent, respectively, below prior year-to-date levels. They also anticipate maintaining 3 operating rigs through the end of the year.
Thanks John
Our well were drilled a couple of years ago . Just hope they keep pumping and that oil goes up significantly before they run dry??
Most Eagle Ford wells will last at least 20 years and as long as 30+ years. Problem after the first 12-24 months is that the decline rate will take the wells to a low rate that will maintain with much lesser decline over the life of the well.
About half of the well's total production will take place in the first 18-36 months (time range varies by area).
Expect your well to change hands from one operator to another over its lifetime as each one tries to milk as much oil as possible out of it at as low a cost as possible to keep making money
If you feel comfortable telling us, where is your well with CHK? Abstract name and number would be great and lease name would help too. I would like to look up the completion and production info as well as see the plat to determine if there is room for additional wells - which is where big future money will be.
How about Marlin Energy? That is is who we are with
Good Morning Betsy, unfortunately we don't have any information on Marlin. Vine Royalty doesn't have any leases with them.
Marlin Energy appears to be focusing on Burleson, Brazos and mostly Grimes Co (see attached PDF of their 11 horizontal permits in this area).
They have 9 wells producing (all horizontal) as of Sept 2015 with total monthly production of 20,000 BO and 50 Million CF of gas
I have a Lease with Gambit Energy for 30 acres in Dimmit County - Bermuda division. Gambit declared Bankruptcy in 2014. My lease will expire in March 2016. Does this make it available to be leased again?....or can I lease now, since the company is Bankrupt?
☆★☆ more questions ~ I also have 2 other leases with 2 separate companies for 10 acres each. Both companies said they were going for the Buda Reservoir. What is the action on the Buda? I was told they would be the well-head for each of these companies - horizontal drilling. I only hold the mineral rights for these acres...are there any advantages to having the well-head on these acres for me? And is there ever any vertical drilling still being done in Dimmit County? I would appreciate any updates or information. Thank you.
I believe - if it is a paid up lease - that the groups who have been assigned the Gambit position as part of the bankruptcy process will hold this lease until expiration
Jayne,
I too am being told that the lessee is going to the Buda but they need 30 more days on same economics as last 68 day extension which was 6 months prior to the expiration of an 18 month term. If they could not find a rig during last 8 months, not sure how the next 30 day extension is going to help.
In addition, i am leased on many of those ten acre tracts. Do you mind sharing the abstracts you are in? Private msg if that is better.
Thanks
Doug
Rock Man
Sorry for late response, my attorney has advised me that the Courts can sit on the lands for as long as they want. The only way I will find out if there is renewed prospecting is if another oil company presents a Leasing option to me and my family. He did not believe there would be any activity soon..with the chaotic and uncertain climate in the oil business at the moment...and with it being an Election Year all bets are off...to figure out what is next..hope this helps others too..j :)
Jayne,
If my research is correct, there is a horizontal well a half mile or so to the west of your tracts that has produced 20,000 bbls of oil and 28,000 mcf of gas. It has been shut in since about 2004. I do not see any permitted wells near your acreage.
One of my friends on this forum has had extensive experience with your lessee. Started out liking him, ended up disliking. I am happy to provide his information if you want to reach out to him and see where he is with your lessee. I have no leases with your lessee but have a counter out now for a 30 day extension so a buda well can be drilled. Very fair offer but they need to do what they say they are going to do. They asked for 30 days and i offered three option: 30, 60 and 90 days.
Let me know if you want more details or want to speak to the lessor with your same lessee.
Doug
I was wondering if anyone had any information on the average price for a oil lease in Zavala County ?
I have been contacted by one company at $250 per acre and royalty starting in the 20 % range.
Any information or thoughts would be appreciated.
Price will all depend on where in Zavala - lots of variability as to potential across the county / especially from south to north
What abstract are your minerals located in?
Cometa Area. West of Crystal City:
CC Gibbs Survey 318 Abstract 1129 and the Riley Ware survey 319 Abstract 1219
Thanks for that info. The $250 per NMA seems low to me - should be closer to $1000 in my opinion especially if they are firm on the 20% royalty. If they go for 25% royalty, I would go down to $700-$750 per NMA.
The norm in may EF areas now is for operators to get leases for as low a terms as possible in their benefit. The wild and crazy bonuses from 2009-2012 are long gone.
I would ask you to remember that there is a give and take right now in the oilfield - operators are looking at lower EUR's and economics in many areas and are trying to keep acreage costs down. And if the landowners don't work with these operators, wells won't get drilled and no royalties will be paid
Aloha from the Island of Kauai
Just wondering anyone has any updates on Chesapeake for the new year? 2016 was rather bleak.
Also anyone out there have a simple way to figure depreciation/depletion?
Thanks
Bev
I know that CHK has put together a pretty good sized acreage position in E Tx to make a play for the Goodland Lime. They have drilled one 7500' horizontal well and rumors say that this well can produce over 500 BOPD.
Still drilling in the Eagle Ford trend in their preferred area while they continue to sell off secondary assets and focus their operations.
As to your question on depreciation / depletion, are you talking about specific producing wells? If so, what area?