I am trying to determine if I own interest in certain wells in Reeves County, Texas. The description of the property I have interest in is S/4 Section 26, Block C-8 Public School land 160 acres.
In the image below taken from MineraliQ I have been receiving royalties from 3 Guam State 26-21 unit wells shown in blue, but not the 5 Iwo Jima wells shown in red. All of the wells are in Block C8 Section 26. All of these wells are Permian Resources wells.
Should I be receiving royalties from the Iwo Jima wells? If not, can you explain the reason? It doesn’t hurt to ask.
Note: I am asking for help on the forum because Permian Resources takes forever, if at all, to answer questions. With questions in the past about division orders and other matters it has taken 3 MONTHS or more to get a first response and often with the question not fully answered. Right now I’ve been waiting 4 months on a question I had about a division order in Reagan County for some new wells where I have ownership.
Based on the description of your acreage / lease position (i.e. the S4 of Section 26 or 160 acres), you should not have an interest in the Iwo Jima laterals. Your “slide” of Section 26 only covers the southernmost quarter of that that section - the Iwo Jima wells are north of that quarter section.
This figures shows your 160 acres in yellow as I interpret its position.
No problem - looks like you are only getting a partial share of the royalties on the Guam wells - only about 15-16% of those laterals fall in your 160-acre slice.
Good news is that there is a lot of room between the two present Guam lateral areas to drill infill wells when Permian Resources is ready to do so. Plus, there are probably multiple benches to be exploited.
No urgencty to drill since everything in HBP right now
Thank you. There seems to be a great deal of urgency to drill in Reagan County right now. DE Central Operating (Double Eagle) in particular has been drilling at a fast pace. Fortunately, I do have some ownership where Double Eagle is working. Permian Resources is also active there.
Double Eagle has some really good assets in Reagan County / Midland Basin area. I know that most companies are wanting to get acreage drilled and HBP instead of facing the need to negotiate renewal leases.
Of course, everything is tied to economics - recent oil price fluctuation as well as predictions of negative gas pricing in parts of the Permian, operators may be more tentative in drilling new laterals.
