Wrong when you claimed Breitling had only been around as a private company for six seven years. They have actually been around for well over ten.
Wrong when you claimed that they have been public for at least five. In reality, it has only been two.
I disagree, but it really could not be less important.
Most recently, you wrongfully assumed that the continuous drilling obligation for the Clayton Williams farmout agreement was 90 days instead of the 180 days that it actually is.
Nope, never said that. I did say this: “Common leases expire after 90 days of not producing and with no drilling activity. There are dozens of ways around this, including leasing the land again. Leasing back in to a commercial well is sometimes difficult. Leasing back in to a non-commercial well on land with no viable prospects, not so hard. “ Not really the same thing, not really the same agreement, and not wrong. Could you show us a link to the farmout agreement?
I also said this:
“Well, mackfish, you are correct, but let me elucidate. I haven't read the farmout agreement, but it can be styled on the whim of the participants. Drilling ten wells may well earn a 3600 acre farmout. Whether drilling 10 wells to TD and leaving them counts is up to the terms of the agreement, but I suspect it does not. The farmout has underlying leases and usually, if they are not HBP by the end of the primary term, they expire. Extension clauses that stipulate more money as not all that uncommon. So yes, Breitling has some drilling and producing to do if they are going to "own" 3600 acres. The key is producing, drilling might earn the farmout, but production is needed to hold the leases, or perhaps more correctly, the units.
"Oh, and as to Clayton's opinion of the acreage, by entering into a farmout agreement with Breitling, Clayton gets an override in a well that will never payout at no cost to him. How could that possibly be bad regardless of his opinion of the acreage? And that is before one considers the bonus he got from BECC. He saw BECC coming a mile away."
Nothing about continuous drilling.
Please copy where I assumed the farmout agreement had a 90 day continuous drilling term. I am pleased to learn it has a 180 day continuous drilling clause. I assumed it had a time limit, but had no idea what it might be.
Our most recent debate on the oil and gas leases in general also leaves me with doubts. I still don’t understand how you know what the proven, producing and recoverable reserves are for the Hoppe 63?
I never said my estimate was proved producing. I said it was a guess. I don't "know" anything. I have an opinion as to what is likely to happen and, in terms of the BECC wells, I have expressed an opinion, I have been shown correct so far.
This is what I see when looking at the Sterling County farmout.
Clayton Williams has operations in the northern portion of Glasscock and Sterling counties, where they have the farm out agreement with Breitling Energy.
Clayton Williams has a well about 1200 feet west of the Hoppe. It, combined with another well on the lease, are not commercial and both have produced around 9000 bbls, thus 4500 bbls per well. He has a reason to farmout the acreage.
As a reminder you never answered this question:
On another note. Reaper could you explain how you know I know full well BECC hasn't been slowing the pump? By what mechanism am I supposed to know it was not slowed.
