Has anybody received any lease offers from ACE Energy in Stephens County? This is the first time i’ve heard of Ace Energy and I thought I’d ask around for info. Also, does anybody know if there is any kind of activity going on in Sec 26 2S 4W
Echo Operating has been doing a lot leasing in that section in 2018. Also Continental Resources, Black Oak Land & Minerals. Looks like someone is about to file at the OCC.
M_Barnes, I wonder who the operator can be? This must explain why ACE Energy is in a hurry to get a lease signed. Thank you for your reply and have a great day!
Continental has proposed a well just south in 34-35. The increase in the surrounding area may be based on this. Hopefully a good well here will lead to further exploration in this area. I have interest North and West of yours.
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I received a proposal from Continental also but they weren’t willing to agree to $2,000 /acre for 40net ma w/a ¼ royalty. ACE Energy is willing to but w/ some questionable lease clauses. Thank you Rick, have a great day
I don’t see that section justifying $2k and 1/4 at this time. That scares me.
Why? I was told that they are a small company and are trying to build. About 3 ½ yrs ago I leased to OKIE and I was able to get $2,000 per NMA 40acres w/ ¼ royalty with no problem.
Have you heard of ACE Energy?
Echo Energy in Dallas tried to lease with us in Sec 25 2S 4W. Unfortunately we had signed with Continental. Hold out as long as you can.
I’m not familiar with ACE, but that doesn’t mean anything. They have filed leases both ways.
$2k per acre is pretty aggressive this far south in Stephens Co. Nothing has been pooled above $0 NMA 1/4 for in the last 5 years in the entire 2S-4W township, for that matter in 2N-4W in the heart of the SCOOP play.
I think Continental might be planning a well in 26 and 35 by the leases being filed. I was just surprised anyone would want to get in there that bad to pay those numbers.
Kent, what was Echo willing to pay for 25-2S-4W if you don’t mind me asking?
2500 - 3000 nma 3/16 or 1/8
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Echo is running 2K right now in Sec262S4W.
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Kent thanks for the info.!
I will call them .
Have a great day!
Where are they out of? I used to be Ace Energy, a partnership, in Midland Texas. I am gone but it may persist. Based in San Antonio?
The company out of OKC that wanted to lease our acreage in stephens county found it was HBP via the Franklin Unit, section 7, i south , three west created in 1983 by texaco and now operated by Citation.
I guess myonly option is to contact Citation and ask them if they are going to drill the woodford and if not demand they drop the deep. What do you think Rick?
dhawk, 7-1S-3W You may try to get them to drop the deep to let you lease the Woodford, but they may not. You will still get paid on any new wells.
I’d bet it has already been assigned to Casillas. Chevron (remember the Texaco/Chevron Merger) assigned a ton of leases to Casillas last month. I’d guess about 2000 or more of HBP to include those you listed in -1s-3w
I suspect Texaco,Citation or whichever company has the deeper rights will farm out the deeper rights - take cash and override - rather than giving you the opportunity to lease them. As Rick mentioned, they probably have already done this. As Martha said, you’ll still get your royalty but it’s probably an old 1/8th.
My husband has an interest under an old 1/8th lease in 2S 3W. The original operator Magnolia (Mobil) has farmed out so many different zones there are now 5 operators on that 120 acre tract. He got nothing for the farmouts and still gets 1/8th on anything produced.
On Nov 30, I received a proposal to drill the Florene 1-25-26XHM from Continental with 3 options of course. It is a multi-unit horizontal well to test the Mississippian formation. This would be in Sections 25 & 26-2S-4W, Stephens Co. I could participate with a 50% working interest by paying the requisite amount up front for completion costs. I can lease or assign for a $850 per acre bonus and 3/16 Royalty. I can lease or assign for a $500 per acre bonus and 1/5 Royalty. Estimated total well cost is just over $12.5 Million. Estimated dry hole cost is almost $4.5 Million. I requested a lease so that I could review it. I received said least, dated Dec 7 for a 3-year paid up lease with 1/5 Royalty with Bonus. I am sitting on it for now. In addition, I previously received a Notice of Continuance re: Continental, Relief for a Multi-Unit Horizontal Well in Sections 34 & 35 T2 4W, Stephens Co. until Nov 13. Just FYI. sm
I got the legal paperwork for the motions Echo Operating LLC has submitted to force pool 26-2s4w and 23-2s-4w with the OCC. They have also submitted the multi-unit horizontal well application to the OCC. I would call Echo to see what they are offering.