I own minerals in Sec 213 Blk 34 Ward County. In Dec I talked to my contact person at Luxe and he told me that they hoped for the wells to be completed by the end of Jan and then later said hopefully end of Feb. I tried to contact him 3 weeks ago and have not heard back. The owner relations dept told me last week that the wells had not been completed yet. The wells are the Dallas and Ava. Does anyone know what is going on with these wells or how I can find out what the hold up is? Thanks in advance.
I hope you can find out but you should understand that when the product price goes from $60 to $20, the industry shuts down. Oil companies will leave faster than they came, leaving behind equipment & questions.
Perhaps Luxe is delaying the frac due to the cost (can exceed $5,000,000 per well) due to the low oil prices. It would benefit you financially as a mineral owner for the large production for early months to be delayed until the oil price increases.
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On this topic, there’s an important fact that mineral owners should understand. Private equity backed outfits like Luxe and many others operating in West TX, take their orders from the PE firms who gave them their initial heartbeat (you know $$), and continue to (or not) provide them their very oxygen to live. I suspect the management at Luxe and dozens of others in their shoes have precious little say in what they get to do these days. These companies are controlled by Boards who are controlled by the PE’s.
Golden rule all the way here. He who has the gold, rules.
The industry is much like a deer in the headlights right now.
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Drilling Info is showing that the Dallas 213 Unit 1H was spud on 7/3/19 and is still designated as a DUC (Drilled, Un-Completed). Hopefully this helps.
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