I am interested in the “down 609” part. I have interests in Muldoon. Thanks.
Kraut,
It looks to be at the intersection of 609 and Buckner’s Creek.
Here’s the Plat Map:
Thanks for the info, Ribeye.
Do you have plats of the NW of LG sites?
Darrell,
Sure. Here’s the Froomey, just off of 71 west of La Grange:
Here’s the Geraint, nw of La Grange on the river:
Much appreciated, Ribeye. I wish them good luck too.
INEOS just received another (this is the fourth) permit to drill in Fayette.
It’s called the Lawless, and it’s west of the airport and crosses under Old Lockhart Road.
Here’s the plat:
Still here, not much going on. Crickets chirping, are getting old!
INEOS just received another (this is the fifth) permit to drill in Fayette.
It’s called the Egan, and it’s about 5 miles northeast of La Grange.
Here’s the plat:
I’ve got no inside information on INEOS’ plans, but given the general lack of interest in drilling right now (as evidenced by the low working rig count), I’ll bet they’re in no hurry.
Since the RRC permits are good for 2 years, they can sit on these things a while. I’m not familiar with the production from the existing acreage, but if they’re worried about losing their leases due to a lack of paying production (or operations), this may be a way to buy them some time.
Again, I don’t know any details. Just thinking out loud.
It looks like INEOS may be laying the groundwork to do something with their Geraint permit.
According to the Schulenburg Sticker, at the August 13 2020 meeting of the Fayette County Commissioners:
Blockquote•Approved the routing agreement and road use bond agreement submitted by INEOS USA Oil & Gas LLC for overweight loads to travel on Huelsebusch Road, Old Plum Highway and Egypt Road in Precinct 1
Those would be the roads needed to get to the drill site, I believe.
The most recent Red Top Rig report now shows only 12 rigs working the entire Eagle Ford, so things really aren’t back to where they were. I guess we’ll see.
Thanks for the updates on INEOS. I figured they had plans beyond getting permits approved since that’s not enough to hold any acreage.
I’m curious about the Red Top Rig report you mentioned. I found one on line covering Kansas but don’t see anything about one for Texas?
Dusty,
I apologize for mentioning Red Top as the source for the Texas data. As you saw, they deal with Kansas.
The Texas rig counts come from the Baker Hughes Rig Count reports. Here’s the page for those:
Baker Hughes Rig Count Reports
They list the Texas counts by RRC District. Fayette, Lee, Burleson, Washington, Brazos and counties east of us are in District 3. The report shows there are 2 rigs working in District 3.
LaVaca, De Witt and Karnes (and a few others) are in District 2, where there are 8 rigs working currently.
The main Texas action, of course, is in District 8 (Permian - Pecos county and west), where there are 77 rigs working.
For comparison, last year at this time there were 62 rigs working the Eagle Ford. Now there are only 12.
Regarding the Permian rigs – some of those may be working solely to hold leases. People have invested many $$$$ per acre out there just to get acreage and they probably don’t want to lose it, even in the age of $40 oil.
Thanks. I appreciate it.
Ironroc seems to have brought in a good well back in July just southwest of Ledbetter on the Gonzo B lease.
It was spud before the pandemic, and completed during it.
Inititial production was 1400+ BPD.
INEOS completed the Geraint well, which is just NW of LaGrange on the river, in December 2020.
They tested it in January 2021 and got initial production of 721 bbls/day, which is pretty good. The question, as it is with all the fracked wells, is how long can they keep it going before they see a significant decline.
The fact that they got this drilled may mean they’ll get busy on some of the other sites down 609 that they got permitted last year. District 3 doesn’t have many working rigs right now, so it’s good to see them doing something in Fayette.
INEOS filed completions yesterday and today on their reentry in the McCollum-Hood Unit and new well in the Vaclavik unit, but both were Well Record Only with no results shown.
Dusty,
Yeah, I believe they filed those only to adjust the acreages due to the more recent survey they did for the Geraint well, which goes across both the McCollum-Hood and the Vaclavik units.
That area is probably a surveyor’s nightmare with both the Colorado River and a creek or two thrown in for good measure.
They supposedly are testing out some new fracking technology down there, but who knows whether it will produce the results they want.
I’m just glad they’re spending some money in Fayette. We’ll see if they start drilling on those other areas down 609 and west of town that they got permitted last year.
The RRC has issued a handfull of drilling permits for Fayette since the beginning of 2021.
Magnolia has the Rainer, which is a horizontal oil well 5 miles SE of LaGrange on the river.
Cimarron has the STV, which is a 3,000 foot vertical oil well in Cistern.
Ironroc has the Constantine, which is a horizontal oil well just east of Ledbetter.
Geosouthern has the Millsap, which is a horizontal oil well 7 miles NE of Fayetteville.
INEOS has reported production for January and February on its recently completed Geraint well just NW of LaGrange on the river. While initial production came in at 700 BPD, it looks like it’s settled down to about 300 BPD. They supposedly are playing with some new technology, but I bet they really wanted some better numbers now that oil is back to a respectable price.
They’ve got some other active permits in Fayette, so we’ll keep an eye on those too.
I’ve heard that the boys up in the Haynesville Shale (gas) are getting offers and inquiries again from landmen for leaseable acreage, which is good news since money for oil and gas deals has not been as available as it was a few years ago.
But, if you’ve got something in the Permian to lease, go pick you out a new Lincoln! Those boys get bonuses with a capital ‘B’.
1 Like
Well, we certainly haven’t seen much leasing in Fayette this year, and what little there has been has been up NE of LaGrange. Plus, there hasn’t been a lot of money being thrown at oil deals lately.
Ironroc just filed a Completion Report on their Constantine oil well in the Austin Chalk just east of Ledbetter, which showed an initial production of 1124 BPD.
Decline rate is a real problem with shale/chalk wells, and those in Fayette are no exception. Even after only 6 months, many of those wells decline 50% from the initial production rate.
With $70 oil, it seems they are able to make those wells pay out in our Austin Chalk. But, if you are a royalty owner, those big checks become small checks before you know it. I’m pretty sure Jed Clampett didn’t have any shale wells.
I’m even hearing about folks being offered leases with NO bonus money. Maybe if we see oil > $80 things will change.
I guess it’s good that the value of the surface estate in Fayette continues to increase. But, then you have to move or die to see it.
1 Like
Out of the blue we have received a lease offer on our property. We are on the very south end of Fayette County on FM 1295. Matrix, through Beacon Land Management is offering a 3/2. 20%, $400/ bonus.
The 3/2, 20 i’m ok with, but the 400/ is really rock bottom. Plus, the option is only at $200/. Anybody else getting any offers from this group. They do have some previous activity in Fayette up just west of Swiss Alp.
Thanks for sharing that information.
It’s nice to see some real interest in Fayette again, rather than those no bonus 1-year lease offers I’ve been hearing about lately.
Matrix had bought/taken over quite a few of the leases that Beland Energy initially executed in the Freyburg - Swiss Alp area back in 2017-2018. As far as I know, none of those were drilled and the leases I suppose all expired. Now with oil and gas both way up I bet they wish they still had them.
If you talk to the land man ask them whether they’re targeting the Austin Chalk or whether they’re going deeper into the Eagle Ford.
Depending on how much acreage you have, you might be able to work that bonus up. Good luck.