There are two new Forge Energy drilling permits (Dec 4, 2017) on sec 28, blk 27, API# 49534003 and 49534005 for horizontal wells that extend south to the far side of sec 33, spanning two sections, lease name "STAGECOACH". I would appreciate any insight the friendly people of this forum might be able to offer. Entering my retirement years, this holding does represent value to me, but am uncertain whether to hold or sell - there have been some good offers.
Thank you.
Caleb...in that area we drilled some vertical wells in the early 70s.
14,000 to 22,000 feet we passed through three shale caps and
had gas and oil showings on the logs. Moved off and they were completed by another company.
BTW, they call that the STAGECCOACH lease because the Butterfield Stage line had a waystation overlooking the Pecos river in what was known as the Brookfield pasture of the Haley ranch.
Shell Western is making a comeback here in Reeves county and
are taking over some of the wells Chesapeake bought from them along
Hwy 17.
Thanks for your insight, Lawrence. These wells are permitted for 13,500 feet. I'm still learning, but with horizontal drilling, would they be after the shallowest resource first, leaving the option to harvest deeper resources later? It might be fun just to have a chat some time, and I'm not ruling out a winter vacation to West Texas this year!
Cheers
When I used to work for AMOCO in Wink and for various drilling companies
in Winkler, Loving, and Ward counties....we identified 17 producing zones
of oil and gas. There have been MANY surges of drilling activity
in the area exploiting the shallow stuff first, from the Yates at 2500 to
3000 feet down to the Devonian/Silurian at 10 to 11 thousand feet.
The Queen sands were shallow, along with 7 Rivers, down to the
Wolfcamp, Bone Springs, Pennsylvania. Now they got all the formations
joined together based on the layers of shale they are between. That's how they came up with the Wolfbone. I preferred the distinctions
of the formations before they consolidated them.....but, I'm old school
oilfield trash.
PBOG Blast
New pipeline to Gulf Coast through Winkler, Crane, and Upton Counties.
http://www.abraxaspetroleum.com/news.aspx?releaseid=2329295
Abraxas acquires land in Winkler county......completes three wells to
engineering specifications....all producing according to plan.
Digging into the Abraxas report that Lawrence found, it is interesting to note that they are actively playing four different landing zones in the same area (Caprito) in Ward Co. Plus they are doing down spacing tests in this same area with objective of proving viability of going from 4 laterals per section to 8.
Their acquisition of 900 net acres (100% HBP) in Winkler Co worked out to a purchase price of $15,777 per net acre.
All good info as to how some things are developing in this part of the Delaware Basin
Exxon is a major player in one of the hottest oil plays in the world right now: the Permian Basin.
Right now, nearly 3 million barrels of oil is extracted from the Permian Basin on a daily basis, making up almost one-third of our total output.
So the fact that Exxon doubled its Permian acreage in 2017 and plans on boosting output in the play by 600,000 boepd makes that temptation to buy grow a little more.
That is, until you look at the rest of the field.
Take a closer look at Diamondback Energy (NASDAQ: FANG), for example.
Not only has it outperformed analyst expectations quarter after quarter for last two years, but it’s also trading at a fraction of Exxon’s market cap.
And it’s one of several smaller players that will put Exxon’s performance to shame. Since the last major bottom in oil in February of 2016, the returns haven’t even been close:
This is the kind of buy-and-hold investment that still has enormous growth potential.
Over the next few weeks, we’re going to shine the spotlight on a few other oil stocks worth a second look.
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Besides Diamondback, another upstart company is drilling wells
in Winkler, Loving, and Reeves counties near Orla.....BlackMountain.
The exploration acceleration continues........
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Anyone receiving offers for royalty minerals acreage around sections 33 &34, Block 27, PSL ? Or anywhere in Winkler County.
Hello William,
Yes indeed. I own interests in sections 28 and 39, which border your two sections. Interestingly enough, if you look at who holds the leases on these sections, all four belong to the same company - formerly Forge Energy, now Oasis Petroleum. Even more interesting, is the fact this allows them to drill a well in one section (eg 28) and extend it all the way into the next section (eg 33), and two such permits are already in place. They get twice the bang for the buck, and in my mind, makes the mineral interests more valuable. I have been approached many times to sell my interests. I have set a specific price, but have not decided to sell.
While I'm not always good at answering the phone, I'm happy to chat about the situation. 206-612-4589
Building on Caleb's comments, operators are preferring 10,000' or 7500' laterals over section length (5000') laterals for economic reasons - significantly higher ROI for the longer wells due to more treated section for not as much capital investment.
Minerals in sections that allow for these long laterals are of high value. Plus multiple wells at multiple levels can be drilled in each 10,000' production unit.
Are you receiving offers to buy your minerals? Or lease your minerals?
I have not paid much attention to the visual of Winkler County Block 27 Section 39 <Wadsworth> lately but looked at it again today and noticed in the N. East corner some kind of a production plant. I looked at an image from Nov 2015 and it is not there. Can anyone shed some light on who built it and just what is its operation being used for. Wadsworth%2039.jpg 2015 and Image from 2018 Wadsworth%2039%20Well%20and%20Plant.jpg.
Thanks, Steve
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