Does anybody have information regarding current activity for permits in Howard County? Most specifically all of Sections 19, 20, and East 3/4 of Section 30; Block 32. We recently discovered that we own an interest through SM Energy on 4 wells. I know that there have been a lot of permits in the county, however, we are eventually looking to divest. I just want to make sure to maximize the return with a timeline. We had gotten a really high offer out of nowhere, but they were really not complete with the details they had regarding our ownership in all four wells. Through emails, they eventually said they had acquired all they wanted and were no longer interested. Does this make sense to anyone?
32S or 32 N? Makes a difference.
The SM Energy wells are in Section 19, Block 32, T1S (Waco Kid A & B) and Section 20, Block 32, T1S (Willie Scott A&B). The question is:
Do you own minerals in Both sections which are leased to SM, or do you own an Overriding Royalty Interest and/or a working interest. You have referred to your holdings as “as interest in … 4 wells”.
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I am guessing it is South as the Deed as well as the Division Orders quote “Block 32 T1S”.
We own a Non-Participating Royalty Interest in all of Sections 19, 20 and the East three-fourths of Section 30, all in Block 32, Township One South. It was just discovered that we owned it recently even though (I believe) those 4 wells were drilled around 2018. We want to divest all of our interests, but looking for the most advantageous timing. Was surprised at what we receive now month to month, and what the offer was to buy our interest. Any insight into the activity in that area would be greatly appreciated.
Given that you have productive horizontal wells already and that there are permits for quite a few infill wells just a few hundred yards away in section 29, you might not want to sell. Or ask for more than what is offered.
Thank you for the information. Would that mean that the infill wells would be horizontals that would cross into the three sections in which we have our interest? I know infill wells can be either horizontal or vertical, and are used to maximize production with different patterns to the drilling. Is that why this area (Howard) seems to be seeing activity now?
I would think any new wells would be horizontals. I do not have direct knowledge of any right now on your property since the permits have not been made public. Any time I get multiple offers to buy, I check out nearby activity. If multiple offers, then somebody thinks they know something (or several somebodies).
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