Page 7 - NorthAmOil Week 35 2022

NorthAmOil INVESTMENT NorthAmOil

Texas family reportedly considering

sale of Permian land

PERMIAN BASIN THE family that owns the 70,000-acre (283 property’s worth to those relatives with stakes.
square km) Mabee Ranch in Texas is report- If a sale goes ahead, much of the value would
edly exploring options for the land, including go to family members, while some would go to
a sale. the foundation, according to the sources. They
The land, which is named after the late oilman said the family was working with advisers to
John Mabee, who bought into it in 2032, and rep- consider options that include the sale of the sur-
resents one of the largest family-owned tracts in face rights and mineral rights on the acreage,
the Permian Basin. Relatives of Mabee own the as well as pipeline infrastructure supporting
land, and a charitable foundation he set up with production.
his wife also holds a stake. Mabee Ranch land is A buyer could use the rights or license them
currently leased to oil and gas producers includ- to others.
ing ConocoPhillips, Diamondback Energy and The news comes as oil prices have dropped
Pioneer Natural Resources. back somewhat from highs reached earlier this
Reuters cited sources familiar with the mat- year in the wake of Russia’s invasion of Ukraine.
ter as saying the land was expected to generate Nonetheless, prices remain elevated, with West
$575mn of free cash flow in 2023 from roy- Texas Intermediate (WTI) crude trading close
alties on oil and gas production. The sources to $87 per barrel as of the end of this week.
did not specify how much the land could be At such prices, it remains more attractive for
expected to sell for, but said that the family sellers to dispose of acreage than it has been in
had decided to cash out and distribute the recent years.™

POLICY

US DoI awards initial funds for

plugging of orphan wells

POLICY THE US Department of the Interior (DoI) the Interior, we are working on multiple fronts
announced this week that it had awarded an to clean up these sites as quickly as we can by
initial $560mn to 24 states from funds allo- investing in efforts on federal lands and partner-
cated under the Bipartisan Infrastructure Law ing with states and tribes to leave no community
for work on plugging, capping and reclaiming behind.”
orphan wells. Of the 24 states, 22 have been allocated
According to the DoI’s announcement, as of $25mn each in initial grants, with Arkansas and
2021, states had identified more than 129,000 Mississippi set to receive $5mn each to support
orphaned wells on both state and private land. methane measurement and begin plugging wells.
This number is anticipated to grow further still Additionally, 15 states will use their initial fund-
as Infrastructure Law funding becomes available ing to set up methane measuring capacity, while
for further records research, more field equip- six states have committed to measuring methane
ment, improved well location techniques and before and immediately after remediation.
increased site inspections and data collection The DoI said that of the 24 states, Oklahoma
across the country. The DoI said states had also and Kentucky have the highest number of wells
indicated that there were over 10,000 well sites identified for plugging and remediation with the
across the US that were seen as high priority and available funding, at 1,196 and 1,200 respectively.
ready for immediate remediation efforts. This The initial funding is part of an overall
figure is also anticipated to grow further. $1.15bn in Phase One funding for states to plug
“President Biden’s Bipartisan Infrastructure and remediate orphaned wells. Additional for-
Law is enabling us to confront long-standing mula funding is due to be allocated in the com-
environmental injustices by making a historic ing months. Meanwhile, an initial $33mn has
investment to plug orphaned wells through- been allocated to plug 277 wells on federal land,
out the country,” stated US Secretary of the while the tribal orphaned well grant programme
Interior Deb Haaland. “At the Department of is under consultation.™

Week 35 01•September•2022 www. NEWSBASE .com P7