Historically, the only way to secure the best acreage in a hot play has been through manpower and money spent. Operators can invest enormous amounts of time, money and effort to stay ahead of competitors in the race for prime assets.
But it’s not just about working harder and spending more. Today’s winners know it’s about being better informed and moving faster to outmaneuver the competition.
Drillinginfo provides you the world-class and tools you need to accelerate your exploration at drastically lower costs.
When leaders at one top producer wanted to expand their presence in the Eagle Ford play, they found a partner in Drillinginfo and got results in hours, not months.
Identify Area of Interest
Based on hot activity and current production volumes, the geology team had a good sense of the general area they wanted to pursue, but the land department needed a method to focus their exploration efforts.
Using the DI AOI feature in DI Plus, the land department was able to plot a customized AOI shape and receive daily email alerts with news regarding that area, such as leasing activity or the closing of a well, without wasting time or resources.
In the past, landmen would have had to hire a GIS expert to draw maps at a price of roughly $2,000 each. If new information became available during an investigation of land availability, the maps would have had to be redone for additional costs.
The Competitive Landscape
After defining the Area of Interest, the land team needed to determine acreage that was already burdened with leases and uncover available tracts.
With Drillinginfo’s database and proprietary maps, what used to take months of time and costly expenses occurred in minutes. Landmen populated the AOI map view with the competition’s active wells, leases and producing units using LandTracs.
The Permits tool let them quickly view any permits filed with the RRC within their AOI. Getting to the exact results moments, the team discovered what appeared to be prime, open acreage - right next to a key competitor.
It’s common practice to rush multiple field Landmen to the courthouse to research ownership within the AOI. At a day rate of almost $425 per person - plus mileage and expenses - for a month or more, costs could soar into thousands, and complexity and miscommunication can spin out of control.
Scout for Production Holds
Finding open tracts in the middle of hot acreage looked like real progress, but before they could celebrate, they needed to make sure those tracts were not currently held by production (HBP).
The team simply activated the production data within their AOI to show any land that was held by production. Within minutes, they were already comfortable pursuing the tracts. Even with a quick physical spot-check the time for this critical task was reduced to a couple of days.
Landmen would normally need to travel to and physically scout the entire prospect to see if there were any rigs, wells or pumps. Then, they would burn even more time to visit a courthouse crowded with competitors, or visit a state website and perform tedious research to verify the production status of the units. Even for the most seasoned and efficient Landmen, the entire process could take up to six weeks to complete.
Make the Deal
Now that the team was confident in the tracts they wanted, it was time to act quickly. Finding and contacting the mineral owners could become the most costly step.
DI Surface Parcels data provided a comprehensive and accurate list of surface owners within seconds. From there, a quick toggle over to DI Courthouse allowed the team to perform due diligence, running the title indirect to uncover any mineral severance and then reversing the process to find the current owners.
DI Courthouse also gave the team access to a wealth of information about the owners including their status, addresses and interest amounts. Landmen could even run the chain of title and print all the legal documents without setting foot in a physical courthouse.
In some cases, ownership could be split between hundreds of heirs. Without DI, this land team would have had to make multiple trips to the courthouse to run titles back to sovereignty.
They would likely need outside contractors to track down contact information and legal documents for every individual involved before negotiations could begin. This process could have taken months and exposed their interests to competitive pressure.
Leadership was thrilled with the team’s results. Drillinginfo helped them streamline the process to identify the acreage in 3 hours, not 3 months and secure it in days.
The project team demonstrated unprecedented efficiency in acquiring valuable assets for the company and expanding their presence right alongside the competition – who had no idea their neighboring land was open.
This case is by no means unique. Similar successes have already occurred for hundreds of DI customers. Talk with a member of our team today to see how you can dramatically improve your efficiency.