It seems Percussion sold it’s assets in Eddy and Lea Counties In NM. The deal was announced in a May and I assume it has closed. Has anyone heard from Spur/KKR, the new owner? We have a small interest in Eddy County and signed a lease deal in March or April. I assume the deal will delay any potential development while they sort things out.
Spur Energy is a large, well-funded startup. They just announced today that they are buying all of Concho’s (COG’s) assets on the Northwestern Shelf for almost $1B. It appears they have deep pockets. They are drilling, but there are no promises they will continue with the same drilling program as Percussion. If you provide the legal description on here, someone will likely update you on the activity in the area.
So far the Spur drilling program has been to drill zero wells on the shelf. Yeah, it’s only been 4 months, but that’s a weird way to follow up on M&A activity. We will see. Maybe they were just waiting on bolting on all the Concho acreage, but you’d think the COG deal is a new opportunist thing following on the heels of a distressing month+ at COG following earnings and Dominator results.
Have some interests near home in 19s25e, hoping to see some rigs show up soon. 
Thanks for the info. Looking back, it seems the Percussion people were in a hurry to get leases signed this spring. They had sorta suggested that drilling would start this summer. I understand the mineral rights in the area are very fragmented. Many of the rights go back 3+ generations, so there are lots of small percentage inherited holdings.
FYI, the area where we have interests is section 7 19S 25E.
Thanks for the info. I also hope we see some drilling soon. You’d think that after plunking down a hefty chunk of change they would like to see some cash flow in return.
Yeah, we will see. They have 85 undrilled permits along the whole trend, the bulk in their “core” in S/2 of 19S 25E. A lot of pooling orders in other places. You’d think it is pretty tee’d up for Spur to run 3-5 rigs, but maybe that is wishful thinking. The longer they wait, the more likely they are gonna be scrambling around drilling just a single well in each unit to hold leases.
I’m sure Percussion was hurrying to get leases signed as they were likely selling at $X per acre.
We own minerals in Sec 14 and 15 of 19s25e.
Interesting. The wells they proposed have a pad in the lower part of section 6 with a lateral ending near the very lower part of section 7, near section 18, I think (I could be off)
Anyone seeing any activity around S/2 Sec. 9, Township 24 south, Range 28 East? Have received offers to purchase interest, but new to this and not wanting to sell short, if at all, if production is likely to start anytime soon. Thanks for any advise.
Ned, I’d guess the moderators would prefer that you start a new topic in Eddy Cty rather than change subject midstream here, but I figure it’s better to just give you a quick answer here.
Mewbourne has two new very good Wolfcamp wells in Sec 8/9 of 24S 28E. One in N/2 of those sections, and one in S/2. API 3001544261 is in your acreage. These wells came online in Nov 2018. If you own here and haven’t received a Division Order or payment you should call Mewbourne land dept and figure out your pay status. There are also 3 other Mewbourne permits in the S/2.