Fairhurst a geologist for Eagle presented those numbers a few years ago, google “Evolution and Development of the Wolfbone Play, Southern Delaware Basin” and look for their report. First published June 2012. The numbers are possibly higher since Avalon, Bone Springs (second Bone Springs) may have been under-estimated in past. Sarah
ok but with the estimate of 108 million barrels of oil in place per square mile for the wolf camp, and 103 million barrels of oil in place per square mile for the Avalon is 211 million barrels of oil in place per square mile.
At 640 acres per square mile i.e. a section of land, the barrels of oil per acre in place, would be 332812.5 an acre.
Conjecture that ten percent is recovered, 33281 barrels, the royalty being 25% or 8320 barrels say sold at $100 a barrel, or $832,000 per acre in royalties potential.
Still, an awful lot of money. But I hope your figures are the correct ones.
Current technology is 10%, but if necessity is the mother of invention! I guarantee greed is the father. Since most wells in Reeves county are now horizontals and CO2 flooding and secondary fracking are being used in other plays, I foresee the long-term numbers could see a million an acre in royalties is not unbelievable. These are what a colleague referred to as “hundred year wells”. Clearly I won’t see all the millions in my lifetime, but what a gift to my heirs.
2-3% is what I have heard. If they ever recover 4-6% it will be unreal.
Stephen, from the current information that I can find available, I agree with your assessment
But still, it is fun to conjecture.
for what it is worth, got an offer to buy in section 44 in April for $10k per NMA for my lease with 25% royalty. well is permitted there now. Tend to agree with group that if you do not need to sell, just wait.
Tim Kirby
Hi Rick,
Wade Caldwell is a Texas Attorney that has been recommended to me to use on this forum.
T,
Lea
Rick said:
Sounds good guys. Thanks. Won't sell, but will wait for a lease offer. Anyone know a good Texas attorney or landman that would negotiate leases and review Division Orders for me? For a reasonable fee of-course.
Thanks Lea, Buddy, and everyone who answered me on this forum.
Can anyone tell me if there is production in section 270, Block 13 H & GN Survey please. Thanks. My deceased grandmother has some minerals there that the Bank has not yet conveyed and I want to know why.
Rick,
I see 2 vertical wells I'm sure are still producing in Section 270.
Link to drilling permit for well API 389-32741:
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...
Link to drilling permit for well API 389-32930:
http://webapps2.rrc.state.tx.us/EWA/drillingPermitDetailAction.do?m...
Section 270 consists of 2 Abstract numbers:A-1120 and A-1868.
GIS Map of Reeves County Section 270/Block 13/A-1120 and A-1868:
Clint Liles
Rick said:
Can anyone tell me if there is production in section 270, Block 13 H & GN Survey please. Thanks. My deceased grandmother has some minerals there that the Bank has not yet conveyed and I want to know why.
We are a couple of sections to your north west, in 258. It is an excellent area and should be protected.
Thanks so much Clint. I will have to hire an attorney to see why my interest isn’t leased or sharing in the production.
Rick,
Contact Charles Emery Tooke(Landman) in Ft Worth and possibly won't cost you as much as an attorney Charles is a Member of the Forum and very knowledgeable and has resources for finding the info you need.
Charles Emery Tooke <[email protected]>
Clint Liles
Rick said:
Thanks so much Clint. I will have to hire an attorney to see why my interest isn't leased or sharing in the production.
Stephen,
That is what he told me. And you math is right. He is a landman with 40 years + experience and though has been prone to wild exaggerations, I don't think so this time.
Buddy
Stephen Long said:
Buddy, according to my not so good math that is $25K/NMA.
Seriously???
I visited the Texas RRC and see that one of the Young wells in the lease has produced over 100K Barrels of Oil since its completion in 2011. It still is producing. Never heard of the operator before…J. Cleo Thompson. Anyone have dealings with this person/company?
They drilled two wells on us. Did a good job and I thought they were a good operator. OxyUSA bought them out, so haven't had any dealings with them since April 1st, 2013.
Have a contact number Stephen? By any chance?
I do not. Sorry.
Section 270 is in what has been identified as a "super sweet spot" by EOG geologists before EOG sold its holdings in the area in order to better concentrate on other oilfields it was also developing.
Development of the adjacent sections has been slow due to the area being of small holdings from the time of irrigated land holdings, many mineral rights blocks are small and now with three and four generations removed from the sale of the irrigated farm land, a lot of work to assemble into sufficient size for drilling blocks.
But, with oil deposits over pressurized so that the first 80,000 barrels arrive at the surface before any lifting means need be used, wells will eventually get there.
THOMPSON, J. CLEO Operator # 855610
325 N SAINT PAUL SUITE 4300 DALLAS TX 75201
(214) 953-1177
Rick said:
Have a contact number Stephen? By any chance?