Has anyone heard of Gilby Services LLC…? They want to lease a section of 5-1S-3w , Carter, where the McCrory well was and said they want to drill deeper?. They say they are the operator but I’ve never heard of them before. recently was leased to Chesapeake so just wondering what is going on here …they took over some of Chesapeakes leases but this one was 2010 so I think all is expired…anyone else offered or know what’s going on with that?
I’ve not heard of them and my quick searches show they operate about 100 wells in Stephens and Carter County. They have one active permits to drill, but the wells are shallow injection wells. It looks like they’re primarily a trucking company, so they might be a salt water disposal hauling company that also has some operations on the side.
They are indeed listed as the operator for the McCrory well, along with one other in that section. Here’s a map of their activity.
I wouldn’t lease them anything deeper than ~7200’ since they don’t look like the type of company that can drill the larger wells in the deeper formations like Woodford or Sycamore (~7500 feet true vertical depth subsea in your parts). There are quite a few targets in that area that are more conventional targets that can be reached with cheaper vertical wells. There was a horizontal modern Sycamore well drilled in section 4 just next to you in 2019, and those wells could command a larger lease bonus than the shallower targets if you could lease that separately.
There is pending OCC activity in section 5 by the bigger players to drill horizontal wells. Might or might not happen. One company is in bankruptcy and another dismissed part of their cases. I would echo what Tracy said about the deep rights.
If you do have deeper rights that aren’t held by production from your old lease, you can surely do better than leasing to Gilby who is not really an exploration company. I don’t see any leases in your name to Chesapeake around 2010 so not sure if your interest is HBP or not.
I have a copy of my lease with Chespeake dated 2010 and is listed on OK County records. Chesapeake sold leases to Gilby Services, one of which was my lease. But I’m thinking the part of the section the old McCrory well is on has expired with Chesapeake so they have to re-lease that from me to drill it deeper? the rest of my areas in 5-1S-3w are held by production. The landman is very persistent and is almost begging me to lease. Its a very small amount too but it is the McCrory. Any ideas? as you said they are a trucking company so not sure what they are up to. So I should put a depth clause on there no deeper than 7200? Their lease is in the name of Gilby Trust which I thought was weird. He also said his boss says the lease is probably expired so that’s why they have to lease it again. So they just have a dead lease, right? or do they now own the area HBP as well even if they weren’t the operator? ?Any help
If you give the book and page I can review the lease for clauses that might work to your favor for the lease being expired, at least for the deeper zones. If Gilby wants to lease the deeper rights, others will too.
Thanks for your reply. Im still debating.
sounds like you need a no-warranty clause in your Exhibit A for sure ; in addition to all the other clauses needed. Just remember the lease from an oil company is not in your favor --AT ALL-- – you need to modify it with your own Exhibit A clauses.
Which company is in bankruptcy?
The NARO category on the forum as a topic with list of some of companies in bankruptcy. The number increases frequently during these trying times. If you are involved, then you will get paperwork from them if your address is correct.
Chesapeake for starters
Chesapeake is in the list. https://www.mineralrightsforum.com/t/oil-company-bankruptcies-and-info/
Todd, the area they want to lease in 5-1s-3w is C of NE NW NW. Do you know what the C mean? This part is not listed on my Chesapeake lease but they seem to think it is. The lease says N/2 SE/4 SW/4 & the East 11.38 acres of the N/2 of Lot 4 & SE/4 NW4 NW/4 & NE/4 SW/4 NW/4 & all of Block 13 to the townsite of Tussy, OK of Section 5-1S-3W. I don’t see C of NE NW NW in there anywhere and I have a DOs from Coffeyville in 2015 and Dehart in 2017 paying on the NE NW NW of 5-1S-3W operated by Dehart. So the lease must have been with Dehart not Chespeake. I’m assuming that Gilbey thought it was leased to Chesapeake. Thanks to Ms. Barnes putting a link on another post, I was able to get to the OCC well reports. it pulled up about 50 different APIs and sections that are McCrory 1 so I looked for NE NW NW and there were five or six and that’s where I got some info. Gilby acquired 83 wells in 2019 including mine with Chesapeake but not the Dehart lease for the small area. It’s possible that my lease with Dehart does not show sold or expired so not getting any other calls?
Generally speaking the “C” represents Center an is used as a well location. I’ll look up well information to see if I can figure this out for you. Old wells have some different spacings so can be difficult to determine.
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