We are looking for information on the value of nma leasing BELOW the currently leased depths. Pecos county section 36 blk 8. Thank you
Good morning Sandy…Sandy your heading states Pecos Texas and your post states Pecos County…FYI Pecos Texas is in Reeves County…so which is it?
Block 8 Sec 36 is in Pecos County
I assume leasing below current depths would be minimal. Might depend somewhat on how it was defined. I think the existing Trees Ranch 4301H pretty much is as far down in the Wolfcamp as anyone is going to go across your section. So if somebody is offering you something…well that’s better than nothing.
I thought Pecos County near the community of Coyanosa. Area called Trees Ranch
They are asking for all levels below Wolfcamp
Yeah good luck to them. Anything below Wolfcamp is pretty much rank speculative exploration in my book. I would say the value of that is approaching zero but I may not have a good enough imagination. The bonus should not be much, I’d take anything I could get. If they manage to pull something off well then you get your royalty rate and will be happy. If they don’t, well then they gave you free money for 3 years of doing nothing. Shrug.
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Thank you so much for your insight!
Sandy after checking the area in and around Block 8 I find several very old verticals wells that were producing from the Mississippian and Devonian formations…and those formations are below the Wolfcamp…
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API 371-30120//Lower Mississippian production data:
API 371-10651//Mississippian Horizontal well production data:
API 371-10674//Ellenburger production data:
CLICK ON DOCUMENT TO ENLARGE
Thank you Clint. Then we would need a very specific lease, I am thinking? I hesitate on giving them Everything above and below. ?
You are correct. I mean its right on top of the old Coyanosa field/fault block there is definitely old deep production. Given the choice between slam dunk shale horizontals and trying to map structural traps for 13000’ vertical targets, the market/industry is a bit skewed against the latter. Again I would take whatever (lease bonus) anybody would give me for the rights below the Wolfcamp. That is all I have here.
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Thank you for taking the time to delve into this for us. Very appreciated
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