I understand it was because the logs showed three spikes that resembled three fingers. I believe it is part of the Cline shale.
Devon reported in a paper that it is larger than the Bakken. that paper was posted on this Blog
I've heard all kinds of rumors about the play in Fisher -at the end of day - just drill...drill baby drill!
Any new activity in Fisher County as of Sept. 18? Leases on 3 pieces of property....but am in NC and want to keep up with what might be the latest goings on.
Range Production "No. 1H Willingham 69" is drilling 15 miles west of Roby on 180 with a planned depth of 10,000 feet. I believe Devon is doing a similar operation south of that on the Davenport Ranch. These big rigs look like space stations!
Any news on production, from the Davenport Well?
I've heard only contradictory rumors. However, at least one lease hound has renewed efforts to tie up more Fisher County land, indicating that someone thinks that something positive is occurring.
Its going to be hard to get good info in the short term and even that shouldnt affect Devons drilling plans for a while. They are playing with Sumitomo money here so they can afford to drill and do science and try and figure out the formations without fear of to much bad PR. The Kirkpatrick well was completed in the cline up north and is only making 13 bbls a day but could very well be cleaning up and improving as it flows back. Devon drilled one Cline and one Mississippi well on Davenport so it will be interesting to see how they turn out. The Well on Baldridge up in Kent is a Mississippi test so it appears Devon has two targets in mind. So called "lease hounds" are going to be a big help now that all the easy stuff is gone because it will allow Devon and other to focus on runsheets and clearing title to drill instead of bogging down in messy mineral title. 3 years sounds like a long time to drill but the clock is running on their leases and they have a large position to drill. Besides if neither the Mississippi or Cline pan out for Devon there are other objectives that smaller cost efficient operators could pursue so its not a bad risk to take. I am very interested to see how the MS test in Kent and Davenport MS test turn out. My understanding is although its the MS formation the make up of the MS is different down here then what they are having success in around Midland. If they can make it work or fall back to the Cline and have success it should be a good thing for the area. I am pulling for success for the benefit of the area but in the meantime could we at lease get some RAIN!
If anyone knows the answer for this question, it would be much appreciated. What were mineral rights(per acre) in Fisher County worth or selling for in 2008? Where or from whom could I get this information?
Diane:
The true answer to that question is an answer most people selling minerals dont like to hear. They are worth what someone is willing to pay at the time you are selling. Since that answer never satisfies anyone a fairly decent guideline is 2x to 2 1/2X the going lease rate at that time depending on activity in the area. Back in 2008 the conventional plays that were being drilled in Fisher County were not prolific so neither bonus rates nor royalty percentages were very high. In 2008 $50-$75 per net mineral acre was probably the most common bonus amount with some larger and more sophisticated owners in attractive areas getting up to $150. Due to the lack of activity in the area in 2008 and the lease bonus prices at that time most of the mineral buyers I know who will acquire minerals anywhere, anytime regardless of activity would have been willing to pay in the range of $125-$250 depending on the acreage size and location. Its no different than any other market for an asset, the price varies due to numerous factors and cant be compared to the prices being paid in todays feeding frenzy.
I would add that if you owned minerals in most parts of Fisher County in 2008 and were trying to either lease or sell them that the market was basically non-existent. If your goal is to attempt to establish their value at that time, then the market was so thin as to be useless as a guideline. If this relates to valuation for estate or tax purposes, then the value would have to be very nominal. Depending on which side of the issue you were on, anything from $5 to $100 might be defensible, but unless property immediately adjacent to yours traded during that period there would be no useful comparable.
If you were to ask the same question about the year 2012, then the answer would be "higher", but still, a reasonable figure would be hard to pin down. Leases have gone for anywhere from $150 to allegedly in excess of $800, and activity has fluctuated tremendously. What you might think the market was in January (active and going up) versus June (slow and declining) versus December (once again somewhat active and speculatively climbing) would make placing defensible a value for the "year 2012" nearly impossible.
About all you can say is that in 2008 the mineral estate on a piece of Fisher County land should have been worth something -- but that something was less than the something they appear to be worth in 2012. Perhaps comparing, if possible, land sales prices in 2008 which included minerals and those which did not would give you some indicator, but again, those sales are probably too few and may be too remote from your property to be meaningful.
Question on another type of "mineral": Water for drilling/fracking seems to be in demand, with several water pits going in around Fisher County. What is the going rate for water paid to the landowner (sucked from a pit)? How much demand is there, or might there be, and what should water rights be worth?
I know this is a somewhat speculative question, but then what isn't speculative in the petroleum business?
Family member just emailed me this. Nice read I thought. http://m.reporternews.com/news/2013/jan/19/big-country-communities-bracing-for-cline-shale/
Does anyone know any news, regarding Fisher County? How are the horizontal wells looking, in the area?
We own some land in Royston...Does anybody know if there is any leasing going on in this area and if so, what kind of bonus and royalty?
anyone know what block and section the most recent Devon permit, is located? the sojourner 1-H
It is located in Block 1, Section 60
We have some old wells in Fisher Co. and received a call from the oil company saying they are mailing out a unitization agreement so they can inject water into the wells. Our percentage is smaller but he explained that we will have a smaller percentage of a larger pool and that it would be to our advantage. Is this something that we just agree to or is it something that should be negotiated? Thanks for any help.
Unitization could very well be advantageous to you, but you can rest assured that the first contract offered to you will not be. Take the contract to an experience O&G attorney for review and negotiate the points which are less favorable to you. There are literally dozens of issues which a "unitzation agreement" could alter in terms of your original lease, so an attorney needs to look for those.
Is $150/acre with 3/16 royalties a good offer in Fisher County?