Hello everyone, I'm a first time forum participant and new to the oil game. I need some advice.
I have mineral rights in Panola County, Texas. I get offers to buy them occasionally. Can anyone tell me how to find the value of these mineral rights?
Thank you, these are all things to consider. I was hoping to find oil and gas production data for Panola County and areas nearby. I believe my small royalties were because horizontal drilling wend under part of the 684 acres of rights I own which complicates it further.
You can look on line at the Tx RRC site to find production in your area. Or if you give me your abstract number, I can do a quick look in DrilliingInfo.com for historical production, horizon and both vertical and horizontal well control.
Is all your 684 acres included in producing units?
I don't think so, I think they're horizontal drilling under my parcel. I'm going to contact Chevron and see if they'll explain it to me. Also, as an aside, they royalty checks were in the hundred dollar range, and I haven't received one for a couple years now, so I don't think I'm sitting on a gold mine here.
Old horizontal wells will have low production rates after the first few years. Questions here is how many more horizontal locations may be available to be drilled that may include your acreage.
Do you have a well name from your checks or division orders that you could share? I would like to look up the production profile info.
Rock Man, sorry to take this blog off track but I have a question. Is the Bossier considered a shale or a sand in Panola County. We had originally been told the Bossier is a shale in this area, but we were recently told that there has been some recent exploration for a "deep bossier sand". Thank you, Kathy
Kathy - good question @ Bossier.
Technically, there is a Bossier "sand" play and a Bossier "shale" play depending where you are in East Texas.
The Bossier Sand play is truly chasing sandstone reservoirs. This is normally focused in the Limestone/ Freestone / Anderson/ Leon County (and other county) parts of the Basin. Although deep and expensive to drill due to over pressure and other issues, normally frac stimulation is not needed. This is normally a vertical play but some horizontal drilling in the sands has been done.
The Bossier Shale play is the "unconventional" play that requires horizontal drilling and frac stimulation. Although called a "shale", it is actually a mix of siltstones (very fined grained sandstone sections) that are normally thin and interbedded with more shaly intervals (that can be organic rich).. This play is the one that is focused in the Harrison / Panola / Shelby county area and into North Louisiana.
Hope this helps but it may come across as "clear as mud". LOL
Wow, thanks everyone. I didn't expect such a quick response. I said I'm new to the oil game, but I should have said I'm new to the mineral rights game. I worked in the North Sea for a long time, so I'm familiar with basic drilling techniques and terminology. Having said that, I'm clueless about what i inherited from m father. This is my first attempt to research it.
Kathy, I'm not sure what an abstract number is, but my paperwork says
Property Name: Deadwood
Operator: Chevron U.S.A. Inc
Survey Adam Legrone SVY A-392
Described in the Declaration of Consolidation and Unitization recorded in Volume 271, Page 550 of the deed records of Panola County.
I'll look at the website you mentioned.
Abstract number is the A-392 info.
Let me do some looking and get back with a posting. I believe that this area (Deadwood) is close to the state line.
Attached is PDF showing Abstract 392. The red dots represent vertical wells that are in this survey. Some of the wells are operated by Chevron. These vertical wells are low volume wells.
Note the long lines - these are lateral wellbores (either drilled or permitted) - I need to look closer at these wells as to production numbers.
Any idea where in this survey is your acreage????
More later after I do some more high level scoping of this area.
Turns out the four laterals that cut thru parts of A-392 are all permitted horizontals with Brammer as the operator. They normally do contract operating work for a third party that does not have a drilling group. All four wells are permitted in the 8000-8500' range. No rig activity yet.
I have attached the permits and plats for all four wells.
Interesting that although Chevron is operating the vertical wells, Brammer is operating these horizontals. If this were a Chevron operation, they would be operator of record.
Therefore assuming that this is a different company that has done some sort of deal with Chevron to get these rights. Based on the permitted TD (TVD), I am assuming that these are Lower Cotton Valley Sand or Bossier laterals.
Could only attach three permits to previous posting due to size. Note that all this info is available on the Tx RRC site.
I would not be surprised that the company behind the drilling of these new laterals is the one trying to purchase the minerals.