But I will hold out for more wells to be drilled in the area I have royalties. The Delaware Basin’s activity continues to attract more interest than ever before, with or without rock movement, etc.
The Delaware basin is unique among all the producing sedimentary systems worldwide because of the unique
nexus of mantle magma pressure relieving faults, fresh water aquifers in place of the inland salt sea they
replaced when the Guadalupe, Davis, and Christmas mountain ranges were upthrust through the seabed, and the multiple stacked layers of sediments trapping hydrocarbons. This same stacked shale plays system
is repeated three times more in Mexico where it is being exploited by Devon Corporation. One of the places
abiotic oil and gas recharging of formations is being documented is in the Permian Basin in Andrews and Winkler counties in wells that were drilled in the late 1920s and early 1930s in the Yates gas field and Seven
Rivers oil bearing sands. I’ve been watching this development with interest because I grew up in Winkler
county when those old wells were still producing then abandoned and plugged in the late 50s.
That we must wait eons or epochs for recharging of such reservoirs to occur is not yet proven. Mantle magma movement may greatly shorten the necessary recharging time…we’ll see.
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Fluor progresses on project at Marathon’s Galveston Bay refinery page 27 in the latest Oil & Gas Journal.
This is one of the refineries we (Reeves county) pump natural gas liquids and dry natural gas to…where it is refined into LNG (Liquified Natural Gas) and put on tankers to supply the needs of countries all over the world that use LNG to generate electricity and cooking/heating/cooling.
I used to be a project electrical construction superintendent for Fluor Global Services…fond memories of the projects and craftsmen I worked with.
The big mistake is putting such refineries on the Gulf coast where they are susceptible to hurricanes and flooding…which will cause outages and loss of revenue. It’s better to do all the refining of natural gas and natural gas liquids here in the Delaware basin where the weather conditions are more stable so there won’t be any outages and shortages of product to anyone. JMHO.
ol’Lawrence in Verhalen
I agree, there is nothing to stop hurricanes in the gulf, and they will be a perennial impact. The flooding impact could last for months.
Hi,Fred…had a great time talking to you on the phone the other day!
Our Trust is wondering about the idea that once a property , 56-6, has a producing well on it that property can never again be leased. Can this be true?
Have to get one of those oil and gas lawyers to give you a definitive answer, but I KNOW a guy who owns the surface and mineral rights to Block 13 Section 153 and has TWO producing wells on it, each operated by a separate company…namely Primexx for one and Noble-Permian for the other…and they are in the same section but different formations…so, I wouldn’t think your land though lease held by a producing well would keep you from leasing that same land different location for a well in another formation. Your production royalties are formation specific in all operator agreements I’ve ever seen.
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Do you know anything about being able to lease the land for cell phone tower if it is leased for gas/oil production?
AR Foster, It depends on the language in your lease. Does the lease cover all depths? Does it specify the number of acres that a well can hold? Is there a release of depths and/or acreage at the end of the continuous drilling period? If you own minerals in 10 gross acres, does the well include all 10 acres or only 5 acres? If you own minerals in 640 acres, how many acres can the well hold? Is the a unit? Oil and gas leases can be complicated to understand and you must read the lease as a whole to determine the lease status of your minerals.
If you own the surface, then you can lease for a cell phone tower. If you also own the minerals, then you may want to check with your oil company lessee to make sure that the tower is not placed where it could interfere with well placement.
Do you have any idea of how long these well will produce and how the production will decrease over time? Our vertical wells have really petered out in a short time.
Phyllis…depends entirely on the stratification…the size of the reservoir of gas and oil…and the water
drive that transports the oil into the bore as the gas cap pressure in the formation comes down to where the well will no longer flow. Then it must be put on a submersible pump or rod pump to continue production. As the oil in the formation becomes less the brine water produced will increase until the well becomes unprofitable. How long it remains profitable is anybody’s guess but generally follows a predictable pattern for all wells in that area in that formation.
Sorry I couldn’t be more definitive or specific to your question.
Thanks Lawrence, You know some of those old wells have been just puttin’ out tobacco money for years just to keep the 1/8 in effect. So I am waiting to see how the Permian holds up on the horizontals. Hopefully our Grands will see a bonanza.
Shift to production efficient sustainability/automation
This is the foreseeable trend in Reeves county. (posted 9/6/2018)
A flurry of drilling activity developing the metes and bounds of producible stacked shale plays
with the most gas, oil, and natural gas liquids production for the buck invested, followed by a flurry of upgraded production facilities and transportation (takeaway pipelines to refineries).
It will come in waves with increased contractor activity followed by increased permanent party
hiring by the operators. And the whole development of the Delaware Basin bounded on the East by the Pecos River and on the west by the mountains in Hudspeth county…will proceed
west and both north and south to the Texas/New Mexico border and to the US/Mexico boundary
of the Rio Grand river.
LOTS of development yet to come.
, Reeves county, Tx:sunglasses:
How are pipeline payments running. I have 2% of an undifferentiated piece of land in Reeves Blk 45 Sec 46. Salt Creek Midstream is offering $300 per rod which seems low for permanent and temporary easements on 218.18 rods of the whole . Since I only have 2% of this, I hope to do better and was left a message to tell them what I might accept. What do you all think?
Kathy…you have 2% of a piece of land…is that your percentage of MINERAL RIGHTS on the property? Who owns and utilizes the SURFACE of the property? They are the only ones, the SURFACE owners, who are to get ROW lease payments. Mineral owners get nothing because
the surface is being impacted not the minerals.
Unless you have 2% of SURFACE RIGHTS and have a whole trainload of surface working partners, you will basically get nothing.
Either way…get a lawyer to represent you and your interests…is my recommendation.
, Reeves county, Tx 
I do have 2% of that land , both mineral rights and the top of the land too. It is just undifferentiated so I do not have a specific piece, just 2% of the whole. So I will be able to sign off on this pipeline if it is a good deal.
Surface rights, that is. There are bout 10 other owners, some are two members of a family and one is a company called Daltex Munn, which owns the largest percentage.
i would do what Brad Bennett at Daltex Munn does