Atomic Capital has approached us to sell our minerals in Section 30 6N 64W which we are reluctant to do so. Looking at GOGCC GIS maps, It appears that there are lot of horizontal wells around the perimeter of sections 27-34 but none in these sections. There are numerous older vertical well s that are in production.
Does anyone have knowledge of why these sections have not had any recent (5years) activity and are the formations suitable for horizontal well.
Here is my thinking after having taken a fast look at the State map and after having seen Atomic Capital invest over the years:
1. Atomic Capital is a long-time investor in mineral rights in the DJ Basin. Its reputation is good. They won't waste your time.
2. Atomic Capital generally invests by buying mineral rights in undeveloped areas, where there is risk involved as to whether wells will be drilled or not.
3. Noble Energy and PDC Energy are the controlling operators in your area, and an experienced buyer may be able to guess at some of their next moves.
4. Personally, I see no signs of immediate action in Section 30, which is maybe discouraging for you; but Atomic Capital may have the cash and the patience.
5. Yes, the formations under section 30 are suitable for horizontal wells, but so are the similar formations in many, many other sections.
6. Therefore, other technical and economic factors play a role, such as pipeline access, access to market for other products, and simple road access for heavy equipment.
Regards,
John Gustavson
There are permits for some lay downs in 21-6N-64W that may pull from the N of Sec. 29 &30. However, permitting does not always equate to drilling. What quarter section are you in?
Might be best to PM me.