Much like the Permian Basin in West Texas, the Uinta Basin in Northeast Utah, which began producing natural gas and oil in commercial volumes in 1925 and 1949, respectively, has experienced something of a rebirth in recent years. After reaching average daily crude oil production of 44,000 b/d in 1985, annual crude oil fell by more than half, to an average 20,000 b/d in 2002. However, Uinta crude oil production has roared back to life since, rising at a trend-line growth rate of 12% per year through 2014. All this despite the fact that the drilling rig count in the basin has been in a downward trend since peaking at 39 in July 2012, falling to just five in early October 2015.
The Uinta Basin is a stacked formation that shows oil and gas pay from intervals ranging anywhere between 1,300’-18,000’, in both conventional and unconventional tight sands and shale formations. Much of the drilling in the area has been and continues to be vertical, although operators have begun drilling horizontal test wells into some of the deeper formations. (http://www.naturalgasintel.com/uintainfo)
Primary geologic targets are the Green River, Wasatch, and the Mesaverde zones. These zones requires massive fracture treatments after being drilled horizontally to maximize production. However, being developed with expensive horizontal drilling and huge fracks, well economics can become challenging during oil and gas price downturns. Many wells in the past that penetrated oil and gas reserves have been plugged and abandoned because they weren’t economic at low prices. We stand at such a time, when mineral buyers and sellers, and oil and gas operators, don’t have a crystal ball to view the future of our industry. Many of us have lived through long downturns, and have minerals that were worth significant amounts of money for a season, only to see those minerals lose much of their value as the industry cycled down.
As you evaluate your overall financial position as it relates to the question of selling some portion of your minerals, we would welcome the opportunity to work with you. You will receive personal service as we research your mineral values, and promptly inform you of our offer. It all starts with you filling out our assessment form.
“We heard about Lee through a relative who attends the same church with Lee. That recommendation was confirmed by Lee’s openness, integrity, and professional communication with us. The results of Lee’s work were beneficial to us all.”
Ric and Rachel, Dimmit County, TX
“Lee, thank you so much! I appreciate your help with this and would never hesitate to call you! You did a GREAT job!”
E.M., Harrison County, Texas