Exxon, Pioneer hype Permian growth for years to come. Some of the producers in West Texas’ booming Permian Basin would have you believe the hype cannot be overstated. The massive Permian shale acreage is expected to account for about 30 percent of all U.S. oil production by the end of the year and it’s easily the fastest-growing oil region in the world. The Permian, previously considered a mature area, is born again thanks to the shale techniques combining horizontal drilling with hydraulic fracturing. “What we’re staring at beneath our feet cannot be replicated anywhere else in the United States. That’s a given,” said Tim Dove, chief executive of Irving-based Pioneer Natural Resources. “We have a golden goose right before us,” Dove said at the CERAWeek by IHS Markit conference in Houston. He joked that Midland -- the largest city in rural West Texas -- must have negative unemployment levels now. The Permian surge is “demonstrably different” from Texas’ earlier shale developments in East Texas’ Barnett shale and South Texas’ Eagle Ford because it’s 90,000 square miles and the shale rock can easily extend 4,000 feet underground, said Dove and Sara Ortwein, president of ExxonMobil’s shale subsidiary, XTO Energy. “It’s clear now that Permania -- as some have called it -- is really not a passing fad,” Ortwein said, adding that ExxonMobil plans to triple its Permian production by 2025. The Permian is producing more than 2.5 million barrels of oil a day now and is expected to hit close to 3 million barrels by the end of 2018. Volumes should grow above 4 million barrels in the coming years if healthy oil prices hold. More at MRT.com
Be advised Clayton Williams, who recently sold all his equipment and holdings for 7.5 Billion bucks to Noble Permian, has land men in Culberson county purchasing land both north and south of IH-10.
He will be developing that county with quad and octal horizontal well
clusters on locations there and building his own gathering and refining
The last big spurt of leasing was in the early 1960's by Sun Oil. Section 265 is a highly fragmented Section because of the Torah Valley et al/swindle of the Southern Methodist University, in that small truck farm plats of land, 5 to 20 acres, were sold to "investors". Section 265 takes a whole lot more work to assemble drilling lease blocks than most of the other sections.
If not for the internet and our current Information technology they probably would be back to the days of having to hire detectives to trace any heirs down.
Mr Rayburn, could you clarify something for me. I have received a letter requesting easement through our acreage. This is the second pipeline asking to cross our land. Will others follow, also requesting right-of-way? Is this common procedure? This one has offered a one-time payment. I wrote our landman for some guidance, but you seem very knowledgeable about this stuff. I have absolutely no reference to rely on. Thanks for taking the time.
I had a company last year do a seismic survey on my land and they are asking for another test. They indicate that I have to share the monies with the state of Texas. I don't remember having to share with the state last year. Is this true that they have to share with the state for a seismic test?
We had a seismic survey on our property last fall. Since we are Public School Land and the State of Texas owns the minerals we had to share 1/2 of the money with The State of Texas.
Thanks Kenneth for the speedy reply. The gentleman that I spoke with said that the State has started the new sharing agreement with the Seismic companies. The money is fair and I am not against sharing with the State, as they are nice enough to share the oil and gas with us. I do thank you for the information. I appreciate the help...
Glenda....negotiate a separate right of way agreement with each company that wants to come across your property. Compensation is based on the size of the pipelines and the distance they use to cross your property. You can make the contract a perpetual one where you get a one time payment, or with term limits...like 5 or 10 years for a set fee payable at the beginning of the contract and renewable at the end of the contract term.
ol'Lawrence in Verhalen (BTW, my Dad was Mister Rayburn because he earned it. I'm just
Mr Lawrence~That seems quite clear, so I will pass this on down the line. (I will heretofore refer to you as Mr. Lawrence as dictated by my Delta upbringing.)
For people in the general area of Block 13, Sec. 185...fyi, a man saying he is working for Black Stone called and offered to buy our lease in the above section. We have a 1/4 interest in acreage there and he offered what amounted to about $8500 a nma. We declined and it became apparent the offer would go up - but we simply didn't want to sell and negotiated no further. So we don't know how high the offer would have gone. We do have two wells spudded on part of the property.
COG sold Ward asset package to Luxe, rec doc 2018-737. Ward County has stopped using volume and page. COG sold Reeves asset package to Colgate, rec vol 1530, page 501.
Noble Permian just completed a well in the northwest corner of that
section and it is part of a cluster of wells they are drilling in that general area...They are horizontal gas wells with two to four wells going in different directions on the same pad. I don't know what they call that
particular well, but the quad well on the adjacent section to me on the northeast side is called the Jalapeno.
Additionally, across Hwy 17 from you in Block 13, section 153, Primexx
is drilling a horizontal gas well offset on that section to the Mercedes Cattle Company well #1 operated by Noble Permian.
So, they KNOW the gas is there. That means there will be MORE offers from companies that want to get a finger in the pie as well.
I'm pretty sure they are about to drill another horizontal well on the section I'm in because they just ran cameras in the existing water wells
here to see if they would support hard pumping of large volumes of water.
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.
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
Wisconsin sand mines getting competition from new mines in west Texas
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.
