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Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2023 at 2:52

Paloma completed three wells that include Section 34 (HA RA SU93;LATTIN 3&34 HC 1-3 Alt) in April of last year.  Although Paloma has a field order that approves spacing for additional wells, there currently are no new well permits to drill.  You won't get a notice letter when Paloma wants to drill more wells.  You'd have to check SONRIS to know when that happens.  The last three wells have declined enough that there may be capacity in the gathering system for more wells but there will be sufficient production for the next several years that Paloma will not have to drill new wells.  Considering the price projections for natural gas, I wouldn't expect new wells before 2025.

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Permalink Reply by M B Gilster on November 22, 2023 at 6:45

Skip as usual gave the best response but *somewhat* relevant as I've had two Paloma DUC wells since Jan/Feb of this yr. in 10&15-14-16. Last week I received an email reply from a PNG landman that they'll decide @ the January board meeting whether to complete these two in Q1 of 2024 or push that plan out further. 

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Permalink Reply by Skip Peel - Mineral Consultant on November 22, 2023 at 7:03

I'm hearing more and more comments that are less sure about significantly better pricing in 2024.  It is helpful to keep in mind that the current version long lateral wells will produce ~80% of their life time volume in the first 24 months.  The later in 2024 that operators can wait to drill or complete wells, the better.  There is some question at this point whether the monthly average price for 2024 will be greater than the cost to drill and complete new wells.

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