The proposed transfer by Enervest of all of its South Texas (Eagle Ford and Austin Chalk) properties to the newly formed Magnolia Oil and Gas Corp. for a 53% equity interest and about $1.1 billion in cash will still leave Magnolia with about .5 billion for drilling and development. The new management is from Occidental and appear from their prospectus to be planning a lot more drilling after the June closing.
Does anyone have any information not included in the Prospectus?
Tomas, thanks for posting this. Haven't heard anything beyond what the companies released and doubt much more will come out until the stockholders approve it.
I'm thinking Magnolia should increase the pace of new laterals being added to old Enervest units that have single, outdated wells holding a bunch of acreage. EV has added some great ones recently but working through the 1000 potential drill sites they talk about with one rig would have taken a long time.
Dusty, How long before the January production figures for a well completed in December will post on the RR Commission website? Just received the royalty check for January sales but believe production was greater with sales in Feb.
Tomas, I think most operators have already posted their January production but the reporting date can vary on recent completions.
If the well you are talking about is in a new unit that wasn't completed until December the first few months of production will probably show up on RRC's site under Pending status.
Geosouthern turned in the January production from their pending wells on 3/08 but for some reason Wildhorse didn't report any of their December production, including their pending wells, until 3/20 so I'm thinking their January pending numbers may not show up on RRC until late April.
I am interested in the Broussard Liebscher Coop unit 1H operated by Enervest. I will try to find it in pending status.
Doesn't look like Enervest has filed anything on it. They filed January production from other pending wells on 3/08 but nothing in District 3, and the last well shown for EV under Leases Built is the Neva.
Thanks for the information.
Tomas, since you alert us to this deal I'm assuming you've seen the investor presentation on Magnolia's website. If not link is below. Table on page 12 compares Broussard Liebscher to other recent wells.
Yes, I read this prospectus. It looks like they forecast production of about 63000 bb in the first 50 days. We were paid for two sales of about 23000 bb in January so I was trying to see what the actual monthly production was going to be in the early months. Guess I will have to wait a bit longer.
Just remembered you can sometimes see sales numbers quicker through the sales tax volume that that has to be reported to State Comptroller’s office. https://mycpa.cpa.state.tx.us/cong/checkDigitForward.do
It says Enervest reported February crude sales from Broussard Liebscher Coop of 33,244 barrels. No gas sales shown yet.
January sales shown there was 23,418 barrels. Great well.
Just remembered you can sometimes see sales numbers quicker through the sales tax volume that has to be reported to State Comptroller’s office. https://mycpa.cpa.state.tx.us/cong/checkDigitForward.do
It says Enervest reported February crude sales from Broussard Liebscher Coop of 33,244 barrels. No gas sales shown yet.
January sales shown there was 23,418 barrels. Great well.
Thanks Dusty for the sales tax information. These figures are a little less than the chart in the prospectus shows for the first 50 days of production. But as you said it is a pretty good well so far.
Dusty, I have tried to look at the sales tax data but have been unable to navigate that website. I can’t find the lease number for the new coop unit . Would you mind giving me a guide to get to the monthly reports so I can monitor them in the future? THANKS, Tomas
Tomas, a lease number hasn't been assigned yet but you can check the Comptroller's site using the drilling permit number for the Broussard Liebscher Coop Unit that's 822493.
Go to https://mycpa.cpa.state.tx.us/cong/checkDigitForward.do
On the page that pulls up go over to the left side of the page and click "Lease Drop-Crude Oil"
On the page that pulls up put in that drilling permit number and below that enter starting and ending dates using two digits for year followed by two digits for month (like 1801 for January, 2018). Then go to the bottom of the page and click "Search". Monthly totals should show up at the bottom of the page.
At this point Jan. and Feb. 2018 are the only months shown on there for your well. You can try putting in an earlier start date or using March or April for the end date but nothing will come up beyond February because March numbers aren't due yet. The reporting deadline for crude sales is either the 20th or 25th of the following month so March should show in another week or so.
To check the gas sales click "Lease Drop-Natural Gas" and repeat what you did to find the crude sales. Only January, 2018 gas sales are currently shown for your well and I think there is a two month lag on when gas has to be reported so the February sales should show up before the end of this month.
Thanks very much.
How can you find the drilling permit nuumber?
Here’s a link that should take you to Railroad Commission’s site to look up drilling permits.
Use the pull down menu at the right side of that page to select Washington County and at the bottom of the page put in the time period you want to search. If you know the name of the operator you can also fill that in.
Forgot to mention, when you look up that permit number you asked about, on RRC’s site they are called the Status #. That’s what you’d need to use to pull up sales volumes on the Comptroller’s website until RRC assigns a lease number to the well you are interested in, which sometimes takes months, and by the time a lease number is assigned the monthly production volume for the well is usually available on RRC’s site.
This is great advice, and I’m glad you mentioned that to everybody. Remember to always add zeros to the lease number so that your total number of digits add up to 6, and if you cannot find information by the lease number use the permit number.
Dusty, The state tax reports for crude oil and natural gas don’t show anything past Dec. 2018 for Magnolia Oil and Gas for Drilling Permit 822493. I wonder if they are reporting under the Lease number which I could not find. Any ideas?