Talked to company that offered to buy my nma. Told me that Continental was cutting budget and rig count was really going to fall and lease amounts were going to plummet. Gave low offer. Well rig count is going down from 19 to 12 but they’re cutting rigs in the stack to 2 but are increasing rig count to 10 in the scoop and springboard. So lease prices may drop short term they should bounce back quickly Stephens county is in the middle of play. Looks like they are moving to south of velma field to east of Loco. Fyi
One reason for the cut in rig count is the companies are becoming more efficient. They can drill the same number of wells with fewer rigs.
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Another reason could be that the wells that are drilled aren’t producing as many hydrocarbons as advertised and therefore not as economical as first believed. Notice the number of companies that are bailing out of being operators? That isn’t because they are more efficient. Drilling companies have been becoming more efficient for the last 60 years. If efficiency related to better economics, wouldn’t it make cents (literally) to drill more wells? IMHO.
Todd M. Baker
Any one hear what’s going on with 89 energy in Stephens county are they still drilling township 1 section 35 an 26
Long way to go before that is determined.