I've heard that Recoil Resources has bought out some/all of Hunt's Assets in Wilson County. Is this true? If so, any ideas what their plans are?
Yes, Recoil Resources has purchased the Hunt properties in Wilson County. They started construction of a drilling pad last week and have permitted a well on the Yosko B unit with a 10,000 ft. lateral. I have heard that the rig will arrive May 15, 2018 to drill the well and is contracted to drill more new wells through the rest of 2018. If all goes well, they plan to add a second rig in 2019. Good news for Wilson County.
Yes, we received word that Recoil Resources closed on all of Hunt's Wilson leases on May 1, 2018. I recently spoke to Travis Bacot, Recoil's land manager. He said they had 4 new drills permitted, including Yosko B as mentioned, and would be drilling about 15 wells per year. The good news is that Recoil's only interests are in Wilson. Unlike Hunt, with world wide operations, Recoil is devoting all their energy to Wilson drills. They are a small and aggressive operator out of Houston, so hopefully that means we will see our unit drilled out in our lifetime. Would be nice! Their new permits are close, but not yet in our unit. They are evaluating these first 4 drills to determine which units they drill next, as well as how they will approach the drills.
New technology in refracting existing wells has progressed considerably in the last two years and my understanding is that many wells have been brought back to near original production levels. When I asked, Travis said he didn't know of any plans Recoil might have to implement that in Wilson, but it's a sure bet they are looking at it.
I was originally told that Enterprise Products owned Recoil, however, that isn't true. Enterprise is handling Recoil's production and will be writing the checks, as Recoil is too small to handle the royalty administrative work.