I am getting new offers to purchase of $40,000-$50,000 per NMA in Reeves County Block 58 (also in Culberson Block 58.) I don’t want to sell but it makes me think something is going on that I don’t know about. Wells are up and producing but these offers seem higher than ones in prior years. Does anyone know of new activity in those areas?
Hello Joy…what’s your section #?
Reeves Sections 12 and 24. In Culberson Sections 28, 32, 34. They are all very close to each other!
Presumably Block 58 T1S? or T2S?
Block 58 (no township) is in Reeves, but not on the Reeves/Culberson line and is out in the boonies
Joy, check your exact block # again…it’s either 58 T6S, T7S or T8S
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Reeves: T2S SEC 12 BLK 58 T&P RR (A-2802) and T2S SEC 24 BLK 58 T&P RR (A-2803)
Culberson : T2S SEC 28 BLK 58 T&P RR (A-1758) and T2S SEC 32 BLK 58 T&P RR (A-1760) and T2S SEC 34 BLK 58 T&P RR (A-1759)
I have the same question. Offers have definitely picked up in the last 6-12 months. Had an offer of $1.5,mil so figure something must be going on. (section 18 Blk 5(amended). I appreciate those on this site sharing their knowledge and expertise.
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The same thing is happening to me. I’m receiving written offers and phone calls wanting to buy my interest in the Kingfisher 23 Units A and B wells (Sec. 23, Block C-7) in Reeves County. I’m fairly certain permits have been issued for new development. How can I be certain? Thanks!
You’re right, lots of new permitting in both areas. On the RRC maps below your surveys are outlined in red.
In Culberson, it looks like all your current production is Wolfcamp but both Chevron and BPX have recently permitted multiple Bone Springs wells. The Chevron wells will bottom at the north boundary of 1758, and the BPX wells bottom at the north boundary of 1759. The permits were approved late last year but can’t tell the status of drilling. It doesn’t look like you will have a part in those wells but proving the productivity of the Bone Springs should be very positive for your area.
Chevron has also permitted 5 more Wolfcamp wells in the Section joining the west side of A-1760, all long lateral wells extending across three sections.
In Reeves County BPX got permits approved last year to drill 9 more Wolfcamp wells from the two pads they have in A-2802. The plats show the four wells in the Laverne unit extending into the section to the north and the five wells in the Shirley unit extending through the section to the south. These are all allocation wells so where your specific acreage is located might make a difference. The last take-points for the new wells in the Shirley unit are at the north boundary of A-2803, which could encourage more drilling in that section also.
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The RRC map shows Rosetta and Noble had permits approved in 2020 for several wells that would have involve parts of Section 18 but they were never drilled and the permits have expired.
Earlier this month Colgate got permits approved for five wells to be drilled in their Jersey Lilly 17-7 unit that joins your Section 18 on the east. Those wells wouldn’t directly impact your acreage but, if successful, could increase the odds that wells will be drilled in your area.
I don’t see any new permits in or near Section 23, Blk C7. In addition to the two wells that were completed in the Kingfisher Unit it looks like three others were permitted but never got drilled and have now expired. Rosetta also had several permits in the section that joins 23 on the west that expired without being drilled.
Here is a link to the Railroad Commissions online map where you can check for new permits in your area. There are a users guide and tutorials on how to use it. https://www.rrc.texas.gov/resource-center/research/gis-viewer/
Thanks Dusty1. This is such good information–I see what you mean about some of the permits being for Bone Springs in Culberson. This is good education to look at the Field on the permit. In Reeves County I am being paid on the current 9 allocation wells that are Laverne and Shirley, so I assume I will get paid on the 9 new ones as well. This is such a help–thank you for going to all this trouble!! I have one other question–how long is a permit effective before it expires!
Thank you so much!!! Joy
Hi Joy, in Texas a permit expires in 3 years from the date it was approved if a well hasn’t been spudded, but the operator can get an extension for another 3 years if they apply before the expiration date.
In Culberson I mentioned the potential for Bone Springs production being added in your area. In Reeves, it looks like at least one of those already completed wells in both the Lavern and the Shirley units are producing from the Bone Springs. Maybe they’ll also go after the Avalon next and that same acreage will be producing from three separate formations someday. Nice to think about.
If you are being paid on those existing Lavern and Shirley allocation wells it seems reasonable you’d also participate in the new ones. The way allocation wells are handled apparently varies from one operator, or area, to another. I’m curious on those first wells if BPX had you sign a production sharing agreement or showed how the allocations were being calculated?
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Thanks Dusty1–more great information!
I did not sign a PSA with BPX. I did get a separate division order for each of the nine wells, and my decimal is correct. The only difference on my DOs is the “Tract Factor” (actually higher than my first two wells) and the “Unit Interest” (not material differences). Maybe that is how the allocations are calculated?
Dusty, Curious here but what are the going rates for a mineral acre unleased in these parts? Thanks C
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