April 30, 2018
May 07, 2018
DRILLING PERMIT SUBMITTED PENDING APPROVAL
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...
May 17, 2018
DRILLING PERMIT SUBMITTED PENDING APPROVAL
August 02, 2018 http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPublicQuery=Y&name=KAINER%2BUNIT&univDocNo=491900073
Completion Reports
August 09, 2018
August 14, 2108
AMENDMENT PENDING APPROVAL
From the RRC report, it looks like something fishy is going on, not to even think about over 2100 acres in the pool???
Thanks for the post, reading these keeps us on our toes.
September 05, 2018
DRILLING PERMIT SUBMITTED PENDING APPROVAL
September 08, 2018
October 05, 2018
Interesting data points. 14,000 feet total completion “depth” and 1693 acres in the pool. Not sure why they didn’t include the entire North Eastern part of the county while they were at it, that way they would be able to hold it all with only one well.
Bigfoot
Notice that big unit is set up for an allocation well. The unit was put together by taking parts of two old units Swift Energy formed back in the 90’s, the Strange and the Scout that have kept producing all these years, and combining those parts with a little outside acreage to form that big new one.
The well covered by the new permit will be drilled from the same location where RamTex Energy recently complete a well called the SuperT. If the story I saw on another thread yesterday turns out to be right the SuperT is a very big well, RamTex has already drilled a second one a little further west called the Tango that is probably being fracked now.
I’ve never heard of RamTex but want to learn about them. It looks like they have partnered with Geosouthern who became the operator on the old Strange Unit and thereby will have part of this new well.
If anyone knows more about what is happening there I’d definitely be interested.
Dusty: Thanks for the update. Now that you have done the research and found out that this is an Allocation well, it is more suspect than it was previously. IMO and I’m definitely not by myself, Allocation is just another misused term (when it comes to oil leasing and production) to put the shaft to selected mineral owners in a pool of wells. Just like everything these high flying producers (EOG in particular) can come up with, the RRC punted and shoved it back to the individual land/mineral owners. This is just another important term to remember prior to signing another lease.
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Since I haven’t had any direct experience with an allocation situation I don’t have a firm opinion. In the Delaware Basin it seems to be the most common way units are formed these days.
Can’t help questioning a system that instead of portioning royalties based on the mineral acres you have in a unit allows the operator to come up with a formula and say you can accept it or get nothing. RRC taking the position “It’s not our job” to judge if that formula is right makes going to court the only alternative. That will benefit the lawyers but isn’t really be an option for small royalty owners. That said, I’m guessing a bunch of folks in those two old Swift units whose minerals have been HBP all these years are thinking those RamTex allocation wells look pretty good.
Everything I have read and what I have heard about the Allocation process is that it is just another system the operators have come up with that gives them way too much flexibility and is just another way to bully the small mineral owner that has no way to fight their over reach.
With that said, when $$$$'s are waved in front of most people they are extremely happy, at least in the beginning until they really know what has been taking place. Hope this works for both the mineral owners as well as the producers. Just reading about the Allocation process, makes the hair raise up on the back of my neck and if I ever get another lease I will do my best to make sure that process is left in the book case where it belongs.
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The reason I’m not ready to say allocation wells are all bad is, basing everybody’s share of production on acres in a unit had become unfair in a lot of cases where operators formed units any size and shape they wanted, and RRC approved them.
The way unit boundaries are set now probably seems wrong to me because I still feel like the productive limits of an area are supposed to relate to structure instead of really understanding these resource plays where all acreage is supposedly capable of producing. But if there is no attempt to match unit boundaries to the productive limits of a reservoir, then using a formula based on how many feet of well bore cross your land, or how many perfs are on your acreage, may be much fairer than just basing it on the total acreage within the unit. The problem is RRC, or some other unbiased party, needs to make sure that formula is right.
In any case, it looks like allocation can allow units to be formed faster, and possibly result in more wells getting drilled, which isn’t all bad.