I’m in the SW4 of the S/w 4 of Section 14, Block 5, H & GN. I understand we are in the Hollywood Unit 1406H. Evidently there are currently two wells being drilled (?) or preparing to drill. I’m in Idaho so have never seen the property. Had a young woman call about two weeks ago to verify heirship information for one of my grandfather’s siblings. I do alot of genealogy research, so usually if a landman needs info, I’m the one they call regarding this 40 acres. COG is the operator.
Not much out there.
All the oil and gas operators require their lease operators/pumpers to
test EACH producing well each month. Back when I used to work for
AMOCO Prod. Co. in Wink, I had 160 wells both rod pump and gas wells with meter runs, 16 tank batteries, 6 SWDs, 16 LACT units…all to monitor, change charts on, and test the wells each month…to check in 8 hours each day.
I spent an average of 5 minutes at each well and tank battery per day
and called the company roustabout gang to deal with any leaks, blown packing in stuffing boxes, or other problems I didn’t have time to deal with by myself. But, I TESTED each well EACH month and kept records of
that production to compare to…to develop trend charts.
The lease operator is the eyes, ears, and arms of the company to OPERATE the lease at peak efficiency and in accordance with the lease production allowables set by the Railroad Commission.
So, the wells ARE tested at approximately the same time each month
and the data recorded so production trend line charts are produced by well, by lease, by month and year of operation. It was the same for commingled wells. The trends were calculated for each producing formation in the commingled well.
We did it on paper back in the day…now they use Palm Pilots or other
electronic entry systems.
near Verhalen
It is not possible to accurately test the oil and gas production from horizontal wells accurately within 5 minutes. These wells produce huge volumes of oil and water which take a lot of time (hours) to separate and measure the proportionate production within the fluids. If the production from the wells is combined before going into the LACT unit, then it only measures the combined oil production from the group of wells. Same for the gas if it is combined before being run through any meters. Today, operators do not test every well every month. Some only test annually. I have been to the LACT units with oil and gas measurement specialists to discuss the accuracy of the equipment which is a second problem. Some operators are running huge volumes through equipment that is too small small to adequately separate the oil and water for testing. It is very likely that the oil is going to a common collection facility to be measured on a multi-well total and then transported by pipeline. The oil company is only concerned about the total volumes and likely thinks that an estimated allocation is as good as accurate measurements from each well. This is a very serious issue for mineral owners. I respect your experience in the field, but Amoco ceased operating wells in 2004 and it mostly operated shallow oil wells and deep gas wells. Operating at peak efficiency can become operating at the lowest costs, including not having separate facilities at each well or lease level, but instead only on a field-wide level.
I hope the Wells burn your barn down!
I hope not. I hope you get enough royalties to build an alabaster mansion for you and your family.
near Verhalen
Where are your properties? Has anybody looked your area up for you yet?
Land/mineral owners in Reeves county, here is the future of oil and gas refining for the Delaware Basin: http://www.reftexas.com/media/522fc8f27343d.pdf
These skid mounted mini refineries can be placed on each location or at a central hub for many locations and produce finished liquid products from produced oil and natural gas. Gasoline, naptha, diesel, aviation jet fuel, lube/motor oils…and stored in tanks on location to be pumped in distribution pipelines or loaded on railroad tank cars to take the products to market. These can be moved around the country as needed
and preclude interruptions due to hurricanes, earthquakes, etc.
near Verhalen
There are now 3 Wells permitted:
None of Google Earth’s photos are in real time. You’d have to be with the NSA or something to have that. The aerials I sent are from 11/20/2015.
If they have begun drilling, they must be behind in reporting the status of the Wells.
Still, it looks like you are in for a much better year next year!
Oryx Energy is putting in more gas and oil gathering pipeline infrastructure
in Reeves county, anticipating more wells being brought online by operators soon. Looks like rights of way from west to east along county
road 336 from FM2903 to State Hwy 285 is going to be the major thoroughfare for the southern Delaware basin.
near Verhalen
Hello all! Does anyone know of any wells or drilling activity near our family’s nma in Block 13, Section 227? I’d really appreciate any information you might have. Thank you!
It’s people like you that make it so.
Don’t quit the Day Job just yet.
A friend of mine’s Father told him “Don’t get excited when the Lease is signed, don’t get excited when the Well gets drilled, don’t even get excited when the first royalty check arrives… get excited when the first royalty check CLEARS.”
That’s good, Kathleen! I got a call from another Landman a few years back asking if I knew of anybody who wanted to by a woman’s minerals down in the Eagle Ford. I don’t know who was stupid enough to give her such a line of credit, but she had racked up $6,000,000.00 in credit card debt, apparently thinking that her checks were going to stay as high as the first one.
Kathleen,
here is a pix of the well in your section -sw 1/4 sw 1/4 along the section fence.
Absolutely do not run up credit card debt or ANY debt betting on income from investments. Pay cash for everything, keep your titles and deeds where you can PHYSICALLY access them anytime you want…(that means NOT in safety deposit boxes in banks). Economies DO collapse from
all sorts of unforeseen calamities. Currencies can be declared worthless overnight. Having your own land and being able to produce FOOD is
the only guaranteed method of amassing family wealth that has stood the test of time everywhere in the world.
My Dad always used to say, ‘Make hay while the sun shines’…So, I advocate securing your land (pay it off) and vertically integrate it so that
you produce your own electricity, your own water for drinking and irrigation, and raise your own food in greenhouses for vegetables and pole barns with pastures for livestock. IF something ever happened to collapse our economy and currency…FOOD will buy ANYTHING when people get hungry. So, I advocate oil and gas workers as well as the land owners with surface and mineral rights, concentrate on building wealth for their families by vertically integrating private FARMS everywhere in west Texas.
near Verhalen
The oil and gas industry and the farmer/ranchers CAN work hand in glove
to develop west Texas into both the premier energy producing location in the world, AND a premier FOOD production location.
This,…from a guy who 45 years ago working 24/7/365 scratching out a living in the oil and gas industry of west Texas never thought he would ever become a sod bustin’ DIRT FARMER in retirement!!! But…here I am!
near Verhalen
The WTI -Brent Spread. What gives?