Thanks for that great info, Lawrence. We knew about all the nearby wells but had no idea our well had been completed. That’s great to hear. We actually have two wells permitted there and they were spudded last year at different times. They’re called Conger 185-184.
NBL filed a completion report on Bush 215 a few days ago. That’s in the section to the SE of us. I think the Jalapeno wells are in the same area.
Hey John, good news…a permit(API 389-36812) was approved for a Wolfbone well to run through the East half of Section 21 on February 9, 2018.
Link to approved permit for Horizontal well 389-36812:
http://webapps.rrc.texas.gov/DP/drillDownQueryAction.do?fromPublicQ…
GIS Map of Reeves County Section 21/A-4587/Block C-1/PSL:
CLICK ON MAP TO ENLARGE
Clint Liles
Thanks Clint . Just found out from a cousin that the spud date is March 15. I appreciate the info. I always like this info in my records.
Thanks again
John
John,
If you go to the bottom of the approved permit you can pull up the plat map of this well location.
CLICK ON DOCUMENT TO ENLARGE
Clint Liles
Consultant firm sees seismic shift in Permian sand supply chain. Not all the frac sand mines proposed for the Permian Basin are online yet, but some operators are already reporting plans to source their sand locally. A study just released by Energent, an energy market research consultancy, supports that trend, predicting operators will increasingly turn to in-basin frac sand. By doing so, they will be able to save 40 to 50 percent on the cost of sand. This will result in potential savings of $500,000 or 10 to 20 percent per well. “If you can cut the costs by sourcing sand and getting it to the site in the range we expect, you’ll see more E&P companies buy local sand and cut their transportation costs,” said Todd Bush, founder of Energent. Speaking with the Reporter-Telegram by telephone from his Houston office, he said a handful of E&P operators have begun showing results from that shift and sharing them with their peers. His report says West Texas mines are producing sand of the required standards and volumes to meet expected demand growth of 2.5 million tons per quarter over 2018 and 2019. By the end of this year, Energent anticipates over 7 million tons per quarter of sand capacity inside the Permian Basin. This will remove approximately 800,000 tons of sand requiring long-haul rail logistics in the fourth quarter of this year as compared to the first quarter of the year. That anticipated growth in demand has mining companies eyeing the Permian Basin, he said. His company estimates over 800 exploration and production operators, 25 pressure pumpers and 30 frac sand producers are active in the Permian Basin. An inventory of 2,430 drilled uncompleted wells and increased capital expenditures means sand demand is expected to rise. New and existing sand companies are spending about $850 million to open facilities in West Texas, he said.
More at MRT.com
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Got sandhill blow sand on your property? Here’s another income stream.
Some energy producers are willing to pay more for high-quality hydraulic fracturing sand from Wisconsin, according to the Associated Press, despite mounting competition from new mines in west Texas. Samir Nangia, analyst from IHS, said Texas sand – because it is located in dunes – is easier to mine than Wisconsin sand in sandstone deposits. “You wash it, you dry it, you put it on a truck, and you send it where it needs to go,” Nangia told the Associated Press. “You don’t need a rail load terminal, you don’t need to do any blasting, you don’t need to do any heavy moving… The costs are really low of producing this sand.”
Wisconsin Public Radio said more than 20 new sand mines have been built or are being built in west Texas this year./////PBOG////
Yep, Winkler and Ward counties have the most new start up frack sand mines in west Texas…and are becoming the industry’s premier sand
supply mines. West Permian basin and the Delaware basin are rapidly becoming self sustaining for drilling/fracking operations raw materials
which drives the cost of exploration down and provides more jobs for area dwellers.
Centennial has permitted a horizontal well to be drilled west of Hwy 17 just behind
the former Clayton Williams/Desta rest camp/now Noble Permian rest camp
at Verhalen. Dunno if it will be a single, dual, or quad horizontal well yet.
I have a piece of property…N/2 of Section 1, Block 72, Tract 15.
When we purchased this Reeves County land, we were told in writing that we have the “classified mineral rights.” I don’t know what this means. On the warranty deed it states: “This conveyance is made subject to any effective oil and gas lease, easement or prior reservation of record affecting the herein conveyed lands.” What does this mean? Do we have oil/gas rights? Thank you.
John McFarland is a well-known oil and gas attorney in Austin. He maintains a blog which is a rich source of information. His July 9, 2009 addition thoroughly explains the concept of mineral classified lands. I’m not sure how to post the link from my phone but if you google his name and mineral classified lands I’m sure you will be able to access it.
Atta’ Girl, Virginia! Great answer.
They can - operator may claim statute of limitations applies (tort 2 yrs, contract 4 yrs).
Sorry - July 31, 2009 and search “Relinquishment Act”.
Karen Cargill -
Please see the links below.
I pulled up Sec 1, Blk 72, PSL/E B Daniel Survey, A-5571, Reeves Co, TX and it appears to have been Patented in 1943.
I have a call into Walter Talley with the State’s General Land Office to determine how it was / is Classified, but he may not get back to me until tomorrow or the next day. You can call Walter yourself if you would like to: 512-475-1859
GLO%20INFO%20SHEET%2C%20A-5571%20REEVES%20CO%2C%20TX.pdf
I also pulled up information on the Centennial Resources - Barbee 72-1 Well No. 1H that was drilled and completed in 2013. It’s Unit is all of Sec 1.
42-389-33389%20CENTENNIAL%20-%20BARBEE%2072-1%20NO.%201H%20-%20PERM…
Then I pulled up the 2017 Mineral Tax Rolls for the Barbee 72-1 No. 1H. The decimal interests reflected in them adds up to 100%, but the name Cargill does not appear.
Then I pulled up recent leases in Sec 1 on DrillingInfo. There records might not be complete, but no Cargills there, either.
DI%20LEASE%20DATA%20-%20SEC%201%2C%20BLK%2072%20PSL%2C%20A-5571%20R…
I noticed that the State of Texas appears on the 2017 Mineral Tax Rolls as owning a 1/16th Royalty in the Barbee 72-1 No. 1H. Along with everything else that I see, it appears to me that your lands are not “Mineral Classified”, where the State retained the Minerals when it Patented the lands and the surface owners act as Agent for the State, but that the State retained a 1/16th Non-Participating Royalty Interest (NPRI) when it Patented the land.
Walter can tell us more.
Either way, since you have not mentioned ever being approached about signing a lease or ratifying one, your minerals appear to have been reserved in prior title.
Hope this helps -
I received a great Bonus offer for a 3 year lease. How important is it in choosing the company who will lease your land for oil royalties? I’ve had my oil and gas attorney revise the lease. But, what’s the possible downside for picking the wrong company, or is there. Are some better than others when it comes to wells being drilled, etc.
Looking for a partnership to sell water on FM 1216. Colgate, Rosetta Resources, PDC Permian, Carrizo Permian, Devon Energy, Centennial Resources are drilling within 5 miles of my location. Contact me at 432-260-8741, serious inquiries only!
My turn to ask a question!
Can anyone remember the discussion about leasing interests in a unit after the unit has been producing for a while? The conversation was regarding whether a previously unleased owner could, once leased, claim royalties back to the first date of production.
Would NOT recommend leasing in that situation without review as it’s possible to claim 100% of share of production as unleased mineral owner. Operator will usually get to offset cost of well but if facts reveal intentional trespass, they do not get that benefit.
Of course, if they decide to lease (and it may turn out to be warranted to participate in all unit well production) they can made payment of all royalties to inception part of the negotiations. … all to say … it depends.
The people involved have been approached by the Operator to either lease or sell because they protested a Rule 37 Application. Their unleased 2 acre tract is too close to two proposed horizontal wellbores and they wanted to slow things down until they knew more.
I reviewed the entire situation with them and they want to lease. I just couldn’t find the previous discussion about the options.
Appreciate the info!