I am wondering if NMOilboy or CMC15 have any current information on Section 15-Township-23 South Range 28 East regarding the 6 wells that had been drilled by Chevron (we participate in 3 wells). We understand that with the slow down due to Covid virus, they were cutting back on their oil production.
Also we understand that Division orders would be sent out, possibly in the fall. Any update would be helpful by anyone with any information regarding this section. Thanks Lee
They fracked the ones in the E/2 of Sec 15/22 (CB NE 15 22 H, 2H, 3H) in Jan/Feb. Looks like they drilled out frack plugs, ran tubing and packer and were ready to produce them in April.
So…they probably started producing in late April would be my guess.
Yes they show they did complete the wells and in the 1st well reported CB NE 15 22 002 #001H they show as you said NMoilboy so I expected to see a small amount of production for April but the April report shows 0 barrels.
The other two wells that Lee is interested in show all the completion work along with comment that the wells were shut in.
I have not seen any well files that show who will be the oil and gas transport filed with the NM OCD.
My last request to Chevron about division orders was “forwarded to the land admin” which I equate to the “ether” and was never responded to beyond that.
I will reach out to Chevron again and share any response I receive.
Thanks to both NMOilboy and to you CMC15 for answering my inquiry regarding S-15 T-23s R-28e. I do appreciate any information that you might find out from Chevron CMC15. It seems that they are not “in the know” whenever I have tried to find information regarding the division orders, so if you have success it would be a “win win”. Thanks again, Lee
I reached out to the Land Admin @ Chevron and they replied that they are currently working from home and will send out division orders when they return to the office in September.
Thank you so much CMC15 for your follow through! Not being familiar with how the Division Orders work, but assuming since there are presently 3 wells on this section (15-Township-23 South Range 28 East), which we will participate in, will there will only be one division order for all three wells instead of 1 division order for each well?
CMC15, I don’t know the protocol for exchanging telephone numbers on this forum but hopefully I am not breaking a hard and fast rule for asking if it is possible for us to talk with via telephone? I get a feeling that you might have mineral/royalty interests in this same section as my wife and I do. Thanks so much, Lee
Hi NMoilboy, you seem to have a lot of knowledge regarding everything , so i am hoping to get some help from you, in your opinion what would be a fair price for leasing bonus in Shugart field in Eddy with a 1/4 held
I would just be guessing. I don’t know your exact legals. Lets say 18s31e somewhere. In the height of the madness (late 2018), BLM leases in 18S 31E went for $5500/acre bonus. (SW/4 of Sec 17). Those are 1/8th royalty (so more valuable to the lessee) and…well…this is not 2018. So, not sure that is much of a benchmark. It probably says that $3k is the absolute possible best case you might ever get if things turn around 180 degrees. For a 25% lease I would be surprised if you got an offer for $1000/acre today. Heck, I’m surprised you are getting offers at all.
I kind of doubt bonuses are going back up to $1000s in the next 3 years. If you can get a 25% royalty I don’t know if there is much risk to signing a lease. If something gets drilled then you are gonna make most of your money off of the royalty and not the bonus, so a $100s difference in bonus is not gonna be a huge deal. If nothing happens, which seems most likely, then you get this bonus and you get to lease it again in 3 years. Money is money, so try to get whatever you can, but I’d sign a 3 year lease if people are making you offers.
Again, though, I’m sure there is somebody who knows more about lease bonuses in this area than I do, they may just not be dropping into the forum for their once a week visit like me.
Yeah I know, this is not the right topic to post this…
Hi Lee! I also own an interest in these wells. They came online at the end of May. I’ve been in touch with their landman and she told me that we should get division orders by the end of July. Her name is Kelly Rau.
Hi Marty. Thank you for your reply and also for the new information. It is nice to visit with someone who holds an interest in the same Section. Would it be possible for us to visit by telephone and or email as I have some other questions regarding the activity of the section and Kelly Rau’s telephone number if possible? My telephone # is 423-284-6363. If you do call me, please leave me a voice mail and I will return your call as we so many scammers calling. Thank you so much, Lee
thank you, You have cleared a lot of querries
Hi Marty I haven’t been on for a while and also own an interest in these wells.
Did the Landman specify which wells were put into production at the end of May ? I see production from the 3 wells drilled to the North which are actually pooled with the east half of Sections 10 and 3. These are the CH Hayes 10 3 Fed Comm wells. They did show some small production numbers for May.
The CB NE 15 22 wells which I have an interest in and is where Lee also has an interest, are showing no production for May.
There is a lag in what is reported to the State Of New Mexico and when they actually publish those numbers. We will probably not see June numbers till after August 10th.
Lee, I had not seen your message about calling. Will try to reach out this week sometime and leave a message.
CB wells first produced at the very end of May. Possibly no sales for that month. Kelly Rau is in Houston office. Office# 713-372-7411
Once again at Chevron the left hand doesn’t know what the right hand is doing, or should I say the landmen don’t know what the company is doing.
Here are the June production numbers for the 6 wells drilled on Section 15 Township 23 South, Range 28 East.
As you can clearly see, the CB Hayes Wells drilled/pooled on sections 10 and 3 to the North produced a very nice 126,000 barrels of oil in June.
The CB NE 15 22 wells produced 0 barrels.
Since Division orders have not been sent, possible Chevron will leave these shut in for a while, maybe the difference is that the CB Hayes wells are Federal and hence a high BLM ownership and are being exempted to a certain degree on paying royalties, while the CB NE 15 22 wells are all private fee and 25% right off the top.
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