Replies to This Discussion

Permalink Reply by Mister Sunday on September 16, 2014 at 11:37

I should also add I'm east of 1196. Well I've told you I'm in the A. Spear.

Permalink Reply by jffree1 on October 7, 2014 at 13:30

Be on the lookout for Nabors rig 206. It finished up in Shelby Co. last week and fell off the report last Friday so it was moving... somewhere. There are new permits on the pad in Z. Redmond (BSI Redhawks DU #H 1) and on Hilltoppers Unit on FM 1196 and also on the Fightin' Irish Unit up north of 21.

Permalink Reply by Tootie Fruitie on October 8, 2014 at 20:52

Do you know where the new permits are, exactly? Any in A.Spears survey???

Permalink Reply by jffree1 on October 9, 2014 at 3:00

Three are on Hilltoppers Unit which is on FM 1196 about 3 miles south of Hwy. 21. The pads are off the hwy on a rock road toward the river and you may not be able to see through the timber but there may be unusual traffic if the rig is there and there would probably be a rig sign at the turnoffs.

There is one permit in Z. Redmond (still waiting on approval yesterday) on the pad just west of the gas station @ 147 & 103. There is a rock road with a gate on the south side of 103 going into timber but you should be able to see a rig standing above the trees... the pad is fairly close to the hwy.

No new permits in A. Spears yet but I'm watching for it.

Permalink Reply by Lynne Davis on October 9, 2014 at 12:53

Is there a rig at 147-103 on the pad in the national forest?

Permalink Reply by Lynne Davis on October 15, 2014 at 15:44

Where do you look to see if a well has been permitted?  Interested in the Hawk Unit 7 with XTO in Z. Redmond.

Permalink Reply by jffree1 on October 16, 2014 at 3:40

Lynne,

You can check permits on the "W-1 Query" page. In the county box (upper right), click on any county name visible and then hit "S" on your keyboard twice and you will be on SAN AUGUSTINE. Hit "Submit" (bottom left) and you will get a list of well permits in the county. The Hawk Unit permit is on the last page (62). They filed an amendment to the unit acreage today so there are two permit pages for that unit.

Permalink Reply by Lynne Davis on October 16, 2014 at 12:51

Thank you!

Permalink Reply by Lynne Davis on October 27, 2014 at 15:44

How much time after a well is approved does the oil company have to drill before the approval runs out?

Permalink Reply by jffree1 on October 28, 2014 at 4:28

A permit is good for two years.

If they (surprise!) started next week it takes a month to six weeks, maybe longer down here where depth is around 14,000', to drill the well (if there are no problems). Then it is typically 3-6 months for final completion. The longest wait is for division orders which could push it to a year, if not longer, before you see a royalty check.

They drilled two wells (up FM 1277 a few miles) earlier this year. One was permitted in Jan. and one in Mar., both spudded in April and drilling was finished in July, on both, using one rig. Those are still waiting on completion.

Permalink Reply by Chloe on October 28, 2014 at 13:26

Could you explain if a permit is good for 2 years...  but your lease expires 5 months into that 2 year period then what.  for instance say they drilled it, etc..  but it is not yet in production when the lease expires....  then what happens???  do they hold it for an additional 19 months without signing more lease renewals...  or do they have to have production for a lease to be held?  or they must renew lease since not producing yet and pay another 5 year lease fee ?  thanks

Permalink Reply by jffree1 on October 28, 2014 at 14:44

Chloe,

That is a really good question that we talked about a lot in the early days of this play. The reality is that if they spud a well (begin drilling) before your lease expires then your leased minerals are either "held by production" or by the "shut-in clause" even though it may be a year, or more, after the lease expiration date before you see a dime of royalty money. You should get your lease out and read all the teensy fine print. They can hold the lease for quite a while without any production at all... if a well is drilled or being drilled when your lease expiration date arrives.

In the event that the lease was allowed to expire (no attempt to drill) XTO would just come back at some later date, when they do decide to drill, and offer you a new lease.

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