SONRIS is always a week or two behind the actual well status. The state relies on the operator's reports and then has to process and upload the drilling status to the database. Never look to SONRIS for timely updates on drilling activity. If you want to be up to date on a weekly basis, subscribe to a weekly rig report.
BLM has this well updated on 8/15/18 with Formation as ALL with 86.66% BLM land & 13.34% private land with BLM lease extended to 6/28/19,
Really? What a scam.
This well is very close to me but I can't tell anything about the site or traffic coming to & from it. Can only see entrance road they built, not the rig or site. Off the road a bit & in a wooded area. Wonder if someone else is backing Magnum.
Plug & Abandoned per Sonris 9/10/18, Just as predicted.
Got to be more than meets the eye here. Throwing away money on a rig to extend a lease for a year on 33,000 acres?
No, not necessarily. This is a not an uncommon occurrence. What do you think a lease on 33,000 acres is potentially worth? What do you think it cost to drill the well? Here's my estimate: 33,000 acres valued at $4K per = $132,000,000. The cost of a well to hold the lease rights - < $1,000,000.
Makes sense then. Economically. R & R (Magnum) also has a bunch more BLM units leased that they just extended which was around $110 an acre. $4000 seems a little high as to what landowners are actually getting. But such a large area too. Could have been a bidding war if a good potential area. I do know that this area is the unit/area as to where Chesapeake & Oxy drilled several wells in mid 90's, This is the largest BLM unit in the area. The rest are 900-2000 acres only. Their intent could be to resale for a profit. Will have to see where they show up next. Also MBI has a lot of the BLM acres leased up in this area. I am in a BLM unit MBI has, which is just to west of one where Gordon well was. Magnum probably got a lot of useful info from this well too, which will never know. Thanks Skip for all your help. I am just wishful of this area producing.
You're welcome, Lisa. The value of $4000/acre is unrelated to what mineral lessors receive for lease bonuses. And $4K is conservative based on no easily recognizable short term development interest. In the Permian Basin, companies have purchased leasehold for $45,000/acre, or more. The recent lease sale in New Mexico brought a successful bid of over $90,000/acre. I doubt that Magnum incurred the expense to generate any "useful info". This doesn't appear to be an "exploration" well. It appears to be a well to meet a "drilling commitment" in a lease. Nothing more, nothing less.
Good deal Skip! So expensive to drill and acquire land for companies. Price of oil up helps, but still a risk that must be lessened over time. New technology helping too. Just glad I am in a good area of AC/TMS. In time all hopefully will be profitable. I'm still learning on all this and guys like you have helped me alot.