I’m in the oil and gas business and live in Howard County, we’ve got just under 50 sections in Howard, Borden and Glasscock county. We own and operate wells in all these counties plus hold minerals on an additional 180 sections in said counties. This is just a buy out of existing production, neither the minerals or the surface is being purchased. No different that what we did north of town on 8 sections that we own both the surface and minerals on. We drilled 14 wells total and operated them for 4 years then sold them to Chesapeake. We still own the land, minerals and receive royalties from these well’s and 22 others that they have drilled since. The big money to be made is in the first 1 1/2 years then the production falls off considerably. out best well up there made averaged over 300 barrels of oil per day and around 250 mcf gas per day for the first 6 months. it had dropped to 35 oil and 62 gas within 2 1/2 years.
Let me add that they will be selling oil and gas to the same companies I’ve been selling to for the last 20 year’s. No big deal other than a very misleading headline.
Good post to clarify details that were totally muddled in the headline. Your deal with Chesapeake explains a lot.