I have two questions. Is there a lot of activity going on in this area? Has anyone heard of Cobalt Energy buying up minerals in Ellis County? They have contacted me to sell. Any help will be greatly appreciated. Thanks
Hi John. Looks like Mewbourne Oil is about to drill some wells in this area for a different zone. I have acreage just north of you. Cobalt’s offers are cheaper than should be expected. I really like mewbourne as an operator. Excellent oil finders.
Hi Todd: Thanks for the information. I am in Arizona so this forum is my only good contact. Which zone are you referring to?? Also, would you have any idea of what acreage is worth in this area? I do want to sell as I am retired and selling minerals but I don’t want to sell low ): Thanks again for your help.
Marmaton has been the main target here, but the new Mewbourne permits are targeting ~200’ lower in the Cherokee. That’d be interesting if they could get that bench working. This area has been all about finding the best sand channel (mostly tight sand some that’s being produced with unconventional horizontal wells, not the massive shale reservoir like in other areas) and following the path of it successfully. This is deeper than Tonkawa, Cleveland, and Marmaton, but shallower than Granite Wash and Morrow. I’m not sure if they found a deeper sand channel they’re chasing in the Cherokee depth, or if it’s actually the Cherokee shale. My interest is piqued.
You’re right in the middle of the fairway EOG was drilling and one of the few sections with open acreage for more Marmaton wells. This could be that the Morrow well there mapped a thin Marmaton sand across there so it’s being avoided, or it could just be randomly how the drilling dice metaphorically rolled. If Mewbourne proved the Cherokee concept, that’d be great for your acreage.
This area’s value was hit HARD by the 2015 crash and just has maintained any sign of life due to Marmaton continuing to kick up some dust. Of the operators, I agree, Mewbourne is my favorite currently drilling the area. They aren’t investor-backed, which I think helps them make better decisions. Ellis county acreage values are low…but you’re probably in the top quartile for value where you are. You should be able to negotiate as much as anyone else in Ellis County at least. I would personally wait to sell to see if any more of these wells look as good as the Goldfinger 21-28 BO (circled in purple). There’s a reason they’re drilling right next to it. Over 100k bbls in a year is great for this area.
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I’ve had a lease bonus offer that I am hoping is low and that I’ll be able to negotiate to a higher price. Is there anyone who has also received an offer?
Lease bonuses are based on competition and Mewbourne has very little so the bonuses are representative of that. Also basically a one zone shot at production.
You are fantastic You put a lot of time and effort into showing me this. I really appreciate it. You have helped me greatly.
Awe, thank you! This area will probably always hold a bit of my heart. I was the reservoir engineer for a company who only had acreage in Lipscomb, Ellis, and Hemphill for ~8 years.
Tracy, since you’re familiar with this area can you tell me if far southern Ellis County, particularly Sections 3 & 10-16N-24W, have any of the potential you mentioned above? Or is that too far south? Thanks
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