First, can anyone tell me how to find how many net mineral acres a royalty holder owns? Secondly, I own an interest in an active well. I am considering selling my mineral interest so I need to know if anyone knows any land men or companies buying leases?
Glen,
You can take a look at your check stubs from your royalty payments and/or look at the tax rolls (if there is a producing well like you said). Tax rolls can be inaccurate, so I would advise you to look at check stubs first.
Let us not forget this is the anniversary of Donald Trump winning the
Presidency. In the year sinceā¦the Dow gained 4000 points and 5.4 Trillion dollars came BACK into the US coffers. The regulations stifling oil and gas domestic exploration and production have been relaxed and an economic boom is in the offing. The price of oil (WTI crude) is
back up above $55/bbl. All kudos for our President and his administration. Hope that it continues and the economic flywheel continues to accelerate under his leadershipā¦especially here in Reeves
County.
near Verhalen
Looks like WTI crude is on track to get above $65/bbl before the end of November. Good news for prospects in Reeves county. I understand
the majors are planning more products refineries here in the Permian/Delaware basin to be close to the production and not subject
to hurricane interruptions. That means ever increasing crude/gas transportation lines.
near Verhalen
Matador is drilling some horizontal wells east of the Pecos river and ending the laterals UNDER the Pecos river. The river follows an old earthquake fault
and has broken the east/west anticlines crossing itā¦causing pinchouts
on both sides in the stacked shale plays. There will be considerable pooling of both high liquids gas (wet gas) and oil on both sides of the river. So there will be good wells in Loving and Reeves county along the
river. There are other similar formations on the west side of Reeves county going into Culberson county where one can expect similar results.
near Verhalen
More fracking going on around meā¦5 wells at the same time in a 10 mile circle of Verhalen. The oilpatch is picking up around here.
near Verhalen
John Richardson -
I just took a look at your area and didnāt see anything notably spectacular going on. Just your run of the mill really great area for Horizontal Wolfbone (Trend Area) wells coming in between 400 and 1100 BOPD and settling to roughly 1/3 of that after a year or so then maybe settling another notch after another year or so.
Sounds to me like they buyers are simply canvassing the area. Lots of room for lots of more wells out there. Some people want to cash out now rather than wait for the rest of the wells to get drilled.
Charles,
Thank you for the update.
PV Hefelfinger -
Please see the attached. The Polo Grounds 150 No. 11H was spudded in on October 29th, just two weeks ago.
It will be some time before it is fracked.
POLO%20GROUNDS%20150%20NO.%2011H%20AS%20OF%202017%2011%2014.pdf
Anyone know the latest on the wells in H&GN RR block 4 section 68? I think the permits were pulled in August. Still curious what the average well in this area is likely to produce per nma? Any thoughts?
I am trying to help a friend with an O&G lease. Has anyone received a recent lease proposal? Terms? Thanks for your help!
Lawrence, In your Verhalen area, do you know if OXY drilled the Polo Grounds 11H well (API 38936261) in Sec.150, Block 13; H&GN? Have they fracked it?
Location, Location, Locationā¦ Where is the land and who is the proposal from?
I truly need some help on a situation with a Pad proposal. What is the advantage of a Pad on the property. How long does it tie up the land? I have ask for a water well on the land when they leave. The money offered is from a form from State of Texas for damages, $7200.00 and I would get half. Now they are saying the water well would cost too much to leave in place when they leave. Also, states they would be drilling more wells, so donāt know how long they would tie up the land. It is 90,000ā. I am so confused if this is a good thing for the land. The company that has the lease on land say they will be drilling in July and not sure if this Pad would be in the area that they would be using to drill. The company that wants to put the Pad is not the company that has the lease. Any help would be greatly appreciated. Thanks, in advance.
Louise
$7200 is too low, Louise. Thatās the rate Clayton Williams wanted to pay
10 years ago before the last drilling āboomā. Depending on how hot the prospect is, you could get up to $25,000 for a drill site pad. But, any way you go at itā¦a water well costs $100/foot and a 500 foot deep
well into the Barilla aquifer will cost them about $55,000ā¦so unless
they are desperateā¦they wonāt drill a water well for you.
near Verhalen
Thank you all for the valuable information on the problem I have had with the pad. They must be very interested as they drop the process a couple of weeks ago. Now they are back. Another package they are sending me. I have not communicated with them since. They sent a couple of messages to me and said they were sending a new package. I was wondering if it is beneficial to me or not. We only have 477 acres. They are not the company we are leased to. And not sure if that would hinder our company drilling a well.
Just want to know the advantages or disadvantages of permitting a Pad on the land. Any and all information will be helpful.
Thank you guys for the quick responseā¦it is appreciated.
Louise
IF they make a well that produces, the pad will ātie upā that piece of land
for 20 to 30 years or more, but they have to fence it off and maintain it and the road access to it.
Louise, You need to gather and provide a lot more information for advice.
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Is this for a well to produce your minerals or is it an off-site location to develop other minerals only?
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Note that the key in the rate and damage schedule is total vertical + horizontal wellbore length, not the pad size. The $7,200 for up to 90.000 sf is only for a well no deeper than 4,000 feet. If this is for a horizontal well, then it will most likely be over 13,000 feet (vertical + horizontal) and then the damages are $20,800. If the pad exceeds the listed 250,000 sf, then you should be paid per sq foot extra - at least $0.08 per sf.
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Roads and electric lines are extra. Road for on-lease minerals is $24.00 per rod and off-lease road (use easement form) is $40.00 per rod. Utility line prices depend on electric capacity. And additional payments are due every 10 years.
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If this is an off-lease pad, then you should be paid for pipeline ROW for the total length of the well pipe from surface down to the point where it crosses under someone elseās surface. At 11,000 feet for vertical pipeline, this can add up. Again, you can require renewal payments every 10 years. At off-lease pipeline prices. Think of this as 667 rods at $64 per rod (6 inch to 12 inch) = $16,008 and renewal at another $48 per rod.
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Why are you receiving 1/2 of payment? Do you only own 1/2 of surface? If this is mineral classified land, then you only split with the State of Texas for an on-site well pad. Any off-site well pad revenues are due 100% to the surface owner.
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Depending on where your surface is located, the depth of fresh water will vary and so will the costs. I do not have experience with getting this. But if they want to use any of your water, then they need to pay for it. Brackish water has value.
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Total remuneration can be quite substantial for an off-lease pad. You need a good easement and well pad lease form with legal protections requiring restoration of surface and clean-up of damages.
Louise,
Please be patient with us. We all mean well, but sometimes we, the people who respond to postings on The Forum, neglect to remember that we are advising Real People.
Everything that TennisDaze has written and advised you is very valid. He or She is one of the best of the best of those who respond to questions people like you post on The Forum.
But sometimes we all get a little more complicated in the way we try and explain things to people than necessary.
No Offense intended, TennisDaze.
Louise, I think it would be absolutely best if you consulted someone to help you with your negotiations regarding an āOff Siteā location on your lands.
Wade Caldwell, an Attorney out of San Antonio, is a well qualified Attorney and a frequent Contributor here on The Forum.
I think you should, at the least, spend a few minutes with him before you make any decisions.
Does anyone have info on when weāll hear anything about the Fury wells Apache is drilling? Many thanks.