Hello,
I’ve read plenty of articles about small and mid producers in Reeves County, but not much about the majors. Does anyone know if Exxon or Chevron have acreage (leases) in Reeves County? I recently read an article about the majors and it talked about how they are expanding their drilling and expect to continue to do so in the Permian (e.g. in contrast to the trend in other articles that have been discussing drilling slowing down in the Permian due to thin margins and diminishing cash flows for the mid and small producers). Apparently the majors in the article only have ~100-150 wells currently, but have permits for over ~6,000. It’s encouraging to read an upbeat report about future drilling, but certainly it’s only as good as the actions that follow it. So I just wondered if anyone had any insight into possible activity.
Thank you!
-R
A good place to look besides the forum is the investor presentation and reports of the companies that you are interested in. The Q2 reports are coming out about now and many of the companies have maps and comments on their recent activity and planned future activity.
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Thank you, I’ll check their reports to see what detail is available and to what level is break downs to (e.g. formation vs. county). I posted here as a shortcut of sorts as I know this community is very good about sharing info. Someone else in my family manages the property, but I want to be certain I’m well aware of the territory, trends, etc. I really appreciate all of your input (and those from others as well). This message board is a great resource.
Cheers - Robert
Fwiw, here are maps of Chevron and ExxonMobil (or XTO, same company) rigs and horizontal producers in the Delaware.
Pretty familiar with the Exxon position. Its basically a few sections on the Pecos/Reeves border and then one section up by Culberson. That’s it in terms of operatorship. Essentially Reeves is a zero, mostly NM. Chevron has a bit more, but doesn’t appear to be a whole lot.
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A post was split to a new topic: General question here
Hello NMoilboy- I appreciate you sharing this info! I assume these are wells as opposed to permits? I’ll have to do some research on their permits/leases. It sounds like they have close to 6,000 permits in their back pocket. I understood that to mean approved permits. Granted I could be wrong as I’m very green. 
Thank you!
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Those are wells online (drilled), not permits.
In general, if you are a bigger company, you just have permitted what you are going to drill in the near future, otherwise you are clogging the regulatory system and spending $ on things that will expire. CVX has 83 approved permits and XOM has a bit over 300 in the Delaware Basin. 7 of those total are in Reeves. Right now CVX is running 15 drilling rigs and XOM is running 29 rigs in Delaware. Figure about 10 wells per year per rig on average.
As far as 6000 goes, that sort of range is more likely the total # of locations that each company may think they can drill on their acreage. In 20-40 years or whatever.
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Chevron owns a large amount of acreage (minerals and/or surface) on more than 2 million acres in the Permian on TXL Lands. They have owned it for a long time so their cost is very low (comparatively) allowing them to drill at their own pace.
Chevron has a very large mineral ownership position in Reeves. Most of it coming when they bought the non-mineral classified lands minerals from Texas Pacific Land Trust many years ago. You could probably find presentations somewhere on their ownership.
I am assuming,
That you are "only" talking about "wells drilled" and not about "wells drilled and completed"?
My best regards,
Stephen Watkins
The data is the same. Neither CVX nor XOM have more than a handful of horizontal producers, horizontal DUCs, or horizontal permits, or current rigs operating in Reeves County. CVX owns interest in a lot of places in Reeves, but their operated position is small (around 50T7S).
