Sent an email yesterday to Silverback asking for a contact person. Got a quick reply today with contact information, so that’s good. Interesting in that the email implied that the “well is not producing”. As far as we know there was never a well started/completed though there was a permit for 2 wells that lapsed. This initial reply stated they are not aware of any plans to proceed at this time. They were aware that we had signed a 2 yr extension.
** Thanks Buzz, cut and pasted this reply from you a couple of years back.m Thanks for checking/confirming that our lease has been sold by BHP to Silverback (we have not heard)**
Marian – J.W. Day is the original grantee who purchased the land from the State of Texas, probably around 1900. A-1390 is called the Abstract Number… like a serial number that goes with that piece of land. If you have only the Abstract Number and County, you can find the property.
This section, H&GN Section 4, Block 64, is 7.4 miles northwest of Pecos.
Well I went to the BHP document and couldn’t find Section 4 block 64 anywhere? So does that mean we were not included in the sell? Still seems that with this sell BHP isn’t going to do much at least in our area as there was a lot sold in Section 4?
Good evening all.
Just wanted to know 2 things:
We are under lease to Williams Energy until Dec of 2016. Wondering if Williams is still drilling in Reeves. Also, we have 480 acres in Sec 22 Block 68, A5759. Is there any drilling anywhere near us? Would love to hear something encouraging. Thanks. Pat Fellows
Pat – ‘they’ have been closer than they are now… rig count in Reeves has gone from a high of 60 last Sep to 20 a month ago to pushing 25 currently. During that time crude oil has gone from $90-$50-$60-$50-$62-$48 now. Later – Buzz
Pat – Clayton Williams recently appeared back on the scene with a rig drilling 8.6 miles SSE of Toyah: LONGORIA 11 #1H, ‘drilling ahead’ after 6 days, 389-34916, PSL BLK C8 SEC 11, A-4656, spud 7/19.
I’m showing A-5759 being in H&GN BLK 13 SEC 68…? Later – Buzz
Yes, Buzz, you are correct! I guess my take-away is that they are getting closer??! 
I’ve received an offer of 3k per acre to sell my 80 acres in Section 227, Block 13. Circumstances make selling something my husband and I will now consider. Can anyone tell us if this is a good purchase offer for the non-producing nma we own?
Two articles about the same report…
IHS: More testing of Permian’s Wolfcamp Delaware sweet spots
~~ Sweet spot identification and delineation continue to be the focus as more companies enter play
By Staff Writer || IHS Energy
9 July 2015
[http://blog.ihs.com/more-testing-of-permians-wolfcamp-delaware-swee...](http://blog.ihs.com/more-testing-of-permians-wolfcamp-delaware-sweet-spots)
================
IHS: Wolfcamp Delaware Play Offers Promise as it matures
June 24, 2015
[http://www.ogfj.com/articles/2015/06/ihs-wolfcamp-delaware-play-off...](http://www.ogfj.com/articles/2015/06/ihs-wolfcamp-delaware-play-offers-promise-at-it-matures.html)
Later – Buzz
Was contacted this week by a landman with Energen. Evidently they are looking at the idea of offering lease extensions early. Our tracts with them don’t expire until Oct/Nov of next year. They evidently are concerned about this low price scenario making drilling unattractive and as such, are looking at securing their land position for an extended period. I don’t think I am against this, providing the bonus for waiting is good.
Thoughts?
BHP Billiton Offers 85,000 Delaware, Permian Acres
Monday, June 15, 2015 {dated}
http://www.a-dcenter.com/bhp-billiton-offers-85000-delaware-permian…
BHP Billiton Ltd. (BHP) is selling six leasehold packages located in the Permian, Midland and Delaware basins in West Texas.
The packages include nearly 85,000 gross (64,000 net) acres and potential horizontal horizons in Culberson, Gaines, Reeves and Terry counties, Texas.
EnergyNet has been retained by the company’s subsidiary, BHP Billiton Petroleum Properties NA LP, to handle the transactions, which will be sold through sealed bid offerings.
{About 1/3rd in Reeves.} Later – Buzz
All the news is pretty discouraging for those of us negotiating leases or lease extensions right now. Darn it.
As I write this, oil has just fallen below $46.
Liz
Interesting read…
How Pipelines Saved America’s Biggest Oil Basin From Shale Bust
[http://www.bloomberg.com/news/articles/2015-07-28/how-pipelines-sav...](http://www.bloomberg.com/news/articles/2015-07-28/how-pipelines-saved-america-s-biggest-oil-basin-from-shale-bust?utm_source=hs_email&utm_medium=email&utm_content=20989600&_hsenc=p2ANqtz-9q5BUcx-2FbQFb0WyxROlfGNkYth9_3uUkUJAb5RiGDl8kdF271H4vqtXuFA0El1l17PUX2N3d2cJ-YDam2iPrYy3Rwg&_hsmi=20989600)
Later – Buzz
Just got bad news that Arabella Petroleum Co. has filed Chapter 11 bankruptcy. I am listed as a creditor in the 41 pages of creditors. Does anyone know what a creditor is supposed to do? Will Arabella continue to produce while in their present condition and will Royalty payments continue to be made?
Stephen - To me, it doesn’t seem logical that Energen would consider an extension/bonus offer 14-15 months early?..unless insider information has them convinced oil prices will be substantially higher by the time your lease expires. Now that would make perfect sense, wouldn’t it? Secure a cheaper extension today instead of paying more tomorrow. What other reason is there? If oil prices late next year are similar to today’s price, Energen will likely pay lower bonus anyway. Just my thoughts.
Fred, they want to keep their acreage position intact. With reduced drilling activity, many of the leases will be undrilled and they will lose them unless landowners sign a new lease. To be honest, if our tracts are undrilled and open for lease next year, I will look more favorably on Anadarko and others who are drilling more wells and have a bigger budget.
My siblings, and other family members have acreage in Sec 59, Blk. 4 - H&GN, that we got a very good lease on last summer. The leasing company has now contacted us want to transfer the lease to Silverback Exploration because they had more interest in drilling in this area. Buzz, do you, or any others that are part of this forum have much experience or knowledge of Silverback. All I know about them is what I have read in this forum. I am sure that they have more rigs operating than the company we now have it with.
Help will be appreciated.
Tommy
Another u-turn by BHP. This is the second or third time they have built a big acreage position and then decided to sell it. Leasing has stayed pretty strong in Reeves given the price environment.
Tommy,
Silverback has a well known founding team, including George Young and Ted Collins, but to date, I show no new permits or rigs. They are the current operator of the previously owned BHP/Petrohawk wells in the Block 4, C-18, C-19 area near Pecos.
Mike,
Yes still have not heard from Silverback. I am in C-18, Blk 4 with a lease coming up this fall.
r / Fred K