New York company to drill new oil wells in Texas Panhandle
(WO) – Joseph Sassoon Group (JSG), a New York-based investment management company, has secured the oil and gas interests across 23,958 acres of late oil tycoon T Boone Pickens’ Mesa Vista Ranch.
According to JSG, the company will drill at least one well every six months until the area is fully developed. JSG will drill its first horizontal completion in the Granite Wash formation in February 2023.
The 23,958 net acres of continual drilling space allows for the optimal selection of well sites across known geology. This allows for more decisive drilling paths and eliminates the need to pull back from borders.
The development will likely generate a 78% royalty interest, which means these mineral rights are rich with payout to the drilling partners, compared to other tracts with higher royalty obligations due to land ownership. Conservative estimate project $2.3 billion of resources are available for extraction within the first 1.5 years, based on today's $80/bbl crude pricing. Diverse well locations and advanced geology on the acreage provide confidence in the extraction.
Mesa Vista Ranch
In 1971, T. Boone Pickens, also known as the “oracle of oil,” purchased the Mesa Vista Ranch. Over the years, the oil tycoon spent millions of dollars assembling over 100 square miles. Before JSG, the ranch was operated by BP Operating and Polaris Operating.
The Granite Wash is a tight sand play located in the Texas Panhandle and Western Oklahoma. Pennsylvanian in age, the Granite Wash is 160 miles long and 30 miles wide. It varies in depth from 7,800' to 15,400' and is 300'-3,300' thick. The productive reservoir is between 8%-22% porosity, and the Granite Wash has produced 20.2 million bbls and 2.4 billion MMcfg since 1993.
Daniel Corey, JSG's CEO, said, "We are very excited to be developing this proven prospect. Mr. Pickens' ranch represents almost 50 years of assemblage, infrastructure, proof of concept and devotion. As a family-owned and operated firm, Joseph Sassoon Group recognizes the historical peak production levels on this asset, which is very impressive, and it is our objective to invigorate this legacy."