word is that the murphy is to be pluged
PPC Operating has been actively leasing in Hockley County for many months. In July of this year, they sold a 48% interest in several of their new leases (about 10 pages worth) to a larger operator, OXY. I would say this is a positive development.
what I have been hearing oxy seems to be stepping in on other deals in the area I will be in west tex next week should hear more on oxy. Anderson who else seems to be trading leases in hockley I will look at a few records in terry monday no way to stay on top of all of this without a few friends in put thanks
Dubose:
The other big player to watch in Hockley County is Cimmaron Field Services, as they have leased several hundred in the last few months and still are active. Their area of interest is farther north, certainly east of Whitharral and maybe other areas. However, Cimmaron is leasing on behalf of someone else for sure, and they have not assigned any of their leases over to others yet at the courthouse. It would be interesting to know who they are leasing for.
Dale Operating Company has a new permit (770336) to drill 11.3 miles NW of Levelland. It's a horizontal drill in labor 22, Reeves CSL, Abs 203, and the well is the Deloache 1-1H.
jw I hope I get time before long to watch the records in the court house in hockley I will do terry co this week Back a few months it showed When Empresa sold 20% of a bunch of leases in terry and hockley in the Terry Records and it was a oil co in Boston named Liberty Oil LLC would like to Talk To That CEO
Run Grantee grantor on Cimmaron and see Who they are buying for I will run them in Terry co will let you know if I find anything Thanks A bunch
Is it just me, or is anyone else having troubles getting any kind of response from Occidental Permian? Can they withhold payments of royalties?
Has anyone heard of cog activity near ropesville?
Hi Ernest. Last thing I heard was a while back when they were drilling the Red Headed Stranger well. Went to the Texas RR website for records and still no completion report filed with the RR commission. Rumors I heard was that it was a dry hole, but with no completion report filed and the GIS map showing it as a permitted well, who knows....
I received an application to amend surface commingling authority form p-17 for various leases in Levelland field area.. I called the engineering company and he assured me there would be no change to my royalty payments.. can't help but wonder if this is ok... The applicant is Occidental...
There is an important new filing by Cimarex to drill a horizontal well just South of Levelland (2.9 miles).
Cimarex has a long history of horizontal shale development, first in Oklahoma's Woodford Shale, and more recently in the Permian Basin.
This is permit 777896 on the Montgomery Unit, listed as 220 acres.
Section 29 Abs 204 Rusk CSL. Targeting a vertical depth of 8250 ft.
My sister and I own the mineral rights for eighty acres that are located three miles west of Anton in Hockley County. We'd like to know what is happening in the area and would like to know if we can help anyone else.
I leased with Penegren ( sp? ) in Dec. 2012 .....I haven't heard anything from them since but does anyone know of any activity South of Whitharral in Hockley County?
Above please find a map of a lot of the recent leasing (and some horizontal drilling) that has gone on in Hockley County. To orient yourself, the city of Levelland is near the lower left of this map. You will need to know your labor/league/CSL/etc to find a particular location.
This map came in conjunction with a big block of leases from Peregrine Production and Zenith that have been put up for sale. Here is their executive summary:
New Macha Prospect Overview:
The New Macha Prospect Area is currently covered by 8,495 net acres out of 9,690 gross acres of leasehold in central Hockley County, Texas. The New Macha Partners are looking for a solid Permian Basin Operator to purchase up to 100 percent of our current leasehold position and drill a horizontal Wolfcamp Detrital or Lower Clearfork – Wichita Test Well on or before 180 days from closing. Additionally, we would like to jointly continue acquiring available leasehold in order to cause the project area to cover about 15,000+/- acres of land.
Land Lease Status:
Leases are new three (3) year primary terms with expiration dates maturing in 2015 and 2016. Approximately 80% of the prospect leases carry an additional right to extend the primary term to 2017 and 2018, with the payment of an additional bonus. The leases are all paid up on primarily producers 88 forms providing for 180 day continuous development after primary term with some leases having no continuous development.
Here is some additional info about their offering:
Peregrine Production, LLC and Zenith Energy, LLC et al are selling 8,495 Net Leasehold Acres (9,690 Gross Acres) located in Hockley County, Texas.
Primary Targets:
► Pay Zones are at depth intervals of 6,700' - 8,500'
► Potential for 60+ Horizontal Wells Assuming 160 Acre Drilling Units
► 200' - 400' thick Wolfcamp Detrital Carbonate Interval
◌ Potential Reserves of 275 MBO to 320 MBO per Horizontal Well
◌ Core Analysis, Drill Stem Testing and Production Demonstrate Interval is Saturated with Oil
◌ Estimated Drilling and Completion Cost of $5.75 Million per Horizontal Well
► 800' - 1,000' of the Lower Clearfork, Wichita - Albany Carbonate
◌ Potential Reserves of 225 MBO to 245 MBO per Horizontal Well
◌ Estimated Drilling and Completion cost of $4.25 Million per Horizontal Well
► 16.8 MMBO Potential Total Reserves
► Additional San Andres Potential
Cimarex recently completed a horizontal well in the Airfield Lease, Well # 1-H. During the 24 hour test, it produced 95 bl of oil, no gas and 1344 bl of water from the 3000 ft lateral.
Not a barn burner by horizontal well standards.
1344 bl of water and only 95bl of oil. I bet that Cimarex makes that one a "shut-in." A person who worked for SWEPI told me once that if the water to oil ratio exceeds 7 to 1, meaning there are 7 barrels of water for each barrel of oil, then that is the maximum limit of water to oil, otherwise it costs them too much to dispose of all that water. Well #1-H has a 13 to 1 ratio. Look for them to abandon that one.
There is a real hangup about water disposal on these forums.
Most operators have SWD wells, and typically the cost runs less than $0.25 per barrel for disposal. Even commercial SWD runs anywhere from $0.50 to $2.50 per barrel. Trucking salt water is the most expensive route, and it runs typically $1 per barrel per hour if utilized. Established companies in big fields don't do this. Pipelines are run to neighboring SWD wells.
In many of the horitzonatal shale wells in various fields, it is not uncommon to see 1000 barrels per day of water per well, especially for new production.
Although water does add to the expense, it also serves a very useful purpose in helping bring in the oil in the formation. Over time, as the oil production declines, the water follows suit.
Water disposal rates in other states, such as Pennsylvania, can be expensive. But Texas is used to this stuff. A 7 to 1 ratio implies a cost of $15 per barrel for disposal, and this is simply not the case for today's oil prices and for the majority of locations.
Cimarex reported results of a second well, the Montgomery Unit 1-H three miles south of Levelland. This one had a mile long lateral. Completion test showed 311 barrels of oil, no gas, and 1133 barrels of water per day, under no choke. This could to prove to be a nice well, but some time is needed to see what the decline curve is like.
New drilling north part of county 2 miles west of hwy 385