Anyone do business with Overflow Energy? They are a saltwater disposal company that wants to drill a SWD well on some acreage in Reeves County. Anyone have experience with SWD wells/lease?
I’ve had a SWD on my property at Verhalen on Hwy 17 in Reeves county for the past 8 years. Originally operated by MTN Energy, then by Probity SWD, then by EnWater, now it’s operated by WaterBridge Solutions. You want to make any deals with Overflow Energy to pay you an overriding royalty percentage of GROSS REVENUES each month…not ‘Net Revenue’ or they’ll net you to zero income.
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Thanks Lawrence for your valuable information.
SWD are beasts of their own. You’ll want to make sure you earn revenue on gross terms (like Lawrence said) and also make sure you get proceeds from any skimming and such.
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Hi. I was wondering if anyone has done a deal with Overflow Energy on a SWD in West Texas and what type of agreement was made?
I have not worked with that specific company, but the important terms you will want to consider are price per barrel or % of gross revenue (or a hybrid) for disposal operations, price for skim oil royalty, surface damage prices or rental, and strong indemnities and other surface protections. It will also make a difference what kind of well they are installing (commercial or for their own use) and who their potential customers are. I would ask for all of this information up front before going any further to make sure the terms are in the ballpark.
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Has anyone heard anything more about Overflow or their activity in the Permian?