Life Beyond the Permian | Russell T. Rudy Energy LLC
The theory is that when there is a limited supply and an ever-increasing demand, prices will increase as well. However, once prices reach a sufficiently high level, consumers begin looking for substitutes and competing products. This certainly appears to be the case with mineral rights in the Permian Basin of West Texas and New Mexico. “Rigzone” reports that several oil companies have found the $50,000 per acre price tag in the Permian too high and are looking for opportunities elsewhere.
Danny Aguirre with Newfield Exploration explains that they got involved with the SCOOP (South Central Oklahoma Oil Play) and STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher Counties, Oklahoma) plays back when oil and gas rights could be purchased for $3,000 an acre, and have never looked back. Newfield and Devon Energy are two of the primary players in the area and it has been very profitable for Newfield. In fact, Aguirre says that his company is “laser focused” on the Anadarko Basin.
RMP Energy concentrates on West Central Alberta where chairman, Josh Young, says the most expensive acreage is $7,000 per acre. The company continues to have great success in the Montey play and is committed to its development.
Lafayette based White Knight Resources is privately held and specializes in buying producing properties with upside potential. CEO Jerry Wenzel feels that opportunity abounds for White Knight in the San Joaquin Basin of California. The company takes advantage of weaker competitors who are ripe for acquisition and sees 2017 as full of opportunities in the area. He notes that in 2016 many operators were still optimistic, but are now ready to sell.
To read the article in its entirety, please go to http://www.rigzone.com/news/article_pf.asp?a_id=150407 .
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