Any recent Mewbourne activity in Custer, in particular section 20-T15N-R20W? We’ve been getting some “lucrative” buyout offer letters, I haven’t received anything lately concerning Mewbourne starting horizontal wells in the area.
What company(s) are sending you the buyout letters? Are they offering to buy your minerals outright?
Hello 20/15n/20w yes a lot of drilling in area the Sage Dragon well 32/5 a great well by Mewbourne just south of section 20 then the moorewood well sections 30/19 just drilled no data yet being fracked. Also the Strickland well being drilled now sections 31/6 these are all Mewbourne wells expectations are high I have talked directly with Mewbourne and section 20 is on the books to be drilled later this year . I have had some huge offers for my minerals in section 20 and 19
How huge are we talking Dennis?
Yes I’d be interested in what they are offering other owners for buyouts in this section, I received a letter from a company offering “up to” $7000/acre.
The “up to” may be a marketing tactic in my opinion. It is likely for only a few folks who might have a 1/4th interest or may not be relevant at all.
Hi Dennis_Ruther, I just signed a lease for a proposed well by Mewbourne in Roger Mills 26-13N-24W. Still some 30 miles away I believe from the Sage Dragon. Some of the landmen I spoke with mentioned that the production results from the Sage Dragon would impact future well drilling in the area moving forward. In your comment you mention the Sage being a “great” well. By great what does that entail? What quantities of; oil, gas, NGL’s are coming out of there? One landman I spoke with said it started out strong on oil month one, but declined faster than expected within a few months. So if you or anyone has monthly production on the Sage, I’d love to take a look. Thanks
Definition of a Landman= “Fast talking younger brother of a used car salesman.” So danger Will Robinson, if you know what I mean. The Sage Dragon (API#039-22627) had first production in February 2024 so well production information is available online: https://oktap.tax.ok.gov/OkTAP. Oil- Best month- April 2024- 21,592 barrels. Gas-Best month- May 2024- 110,305 mmcf. Last available information- 11/24- Oil- 7,838 barrels. Gas- 57,803 mmcf. For the novice, here is a quick way to get a “value” on the money a well must make for a buyer to break even. Let’s use $5,000/acre for 1 acre that is leased on 3/16ths in a 1280 acre unit. So 1 acre/1280 X 0.1875= 0.0001464 unit net revenue interest. So divide $5000 by 0.0001464= $34,153,005. At a $70 BOE, divide that number by $70.00 & you get 487,900 BOE for the buyer @ $5,000/acre to break even. You can change the royalty, price per acre or dollars per BOE to whatever numbers you want and let the calculator do the rest.
Martha is correct, IMHO, that “up to” is the bait. Using the calculations above, the party that pays $7000/acre will most likley lose money on their investment within reasonable time value of money scenarios.
30 miles? Thats a liftetime away when trying to compare future wells drilled on your section? Did you mean 3 miles?
Here is the Sage Dragon Production:
| 30-Nov-2024 | Crude Oil - 1 | 7,838.37 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
|---|---|---|---|---|
| 30-Nov-2024 | Natural Gas - 5 | 57,803.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 31-Oct-2024 | Crude Oil - 1 | 9,294.56 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 31-Oct-2024 | Natural Gas - 5 | 62,300.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 30-Sep-2024 | Crude Oil - 1 | 9,257.94 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 30-Sep-2024 | Natural Gas - 5 | 62,334.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 31-Aug-2024 | Crude Oil - 1 | 11,139.95 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 31-Aug-2024 | Natural Gas - 5 | 70,525.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 31-Jul-2024 | Crude Oil - 1 | 11,802.01 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 31-Jul-2024 | Natural Gas - 5 | 78,145.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 30-Jun-2024 | Crude Oil - 1 | 13,795.69 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 30-Jun-2024 | Natural Gas - 5 | 87,802.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 31-May-2024 | Crude Oil - 1 | 18,417.09 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 31-May-2024 | Natural Gas - 5 | 110,305.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 30-Apr-2024 | Crude Oil - 1 | 21,592.70 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 30-Apr-2024 | Natural Gas - 5 | 0.00 | ET GATHERING & PROCESSING LLC | 24917 |
| 30-Apr-2024 | Natural Gas - 5 | 107,275.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 31-Mar-2024 | Crude Oil - 1 | 10,296.27 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 31-Mar-2024 | Natural Gas - 5 | -44,543.00 | ET GATHERING & PROCESSING LLC | 24917 |
| 31-Mar-2024 | Natural Gas - 5 | 48,675.00 | MEWBOURNE MARKETING, INC. | 19053 |
| 29-Feb-2024 | Crude Oil - 1 | 10,620.97 | VALERO MARKETING AND SUPPLY COMPANY | 21409 |
| 29-Feb-2024 | Natural Gas - 5 | 0.00 | ET GATHERING & PROCESSING LLC | 24917 |
| 29-Feb-2024 | Natural Gas - 5 | 43,320.00 | MEWBOURNE MARKETING, INC. | 19053 |
Bob77, yeah I meant 30 miles. Although relatively new to O&G, I am familiar with it being a lifetime away in the mineral world. From speaking with a few landmen it came up twice as a factor (waiting for production reports), or as a Guinea pig towards how lease pricing and activity would be affected “in the area” moving forward. That’s just what I was told, and why the Sage Dragon in particular peeks my interest. Are those numbers “great?” I’ve heard 1,000bbl/day being great for the Anadarko. These numbers are definitely good numbers though.
Thanks for uploading the well report! What is the negative from 3/24 mean? March 2024 natural gas of -44,543.00 ET GATHERING & PROCESSING LLC
It’s the only time ET has any activity and the only negative on the report