Oh brother--here comes Keys Energy Service in the Andrew Chapel area.
Barbara:
Help me! Where is the Andrew Chapel area and who is Keys Energy Service? Haven't Googled them yet; but, not familiar with them.
Barbara Sample said:
Oh brother--here comes Keys Energy Service in the Andrew Chapel area.
Seth:
Thanks for explaining where this location really is. Unless Divine Resources has come back with another wave of documents to sign since the Gonzales meeting, her 120 days should have expired long ago.
Seth said:
Barbara,
Thanks. Keys Energy Service must be in competition for Sarah Smith 415, Proper Hope, etc.; because Argent is still eyeing the Hardaway, Parson, Richarson, etc. families in and around the Briscoe new well, which they've hired landmen to close the deal for Argent!
Now, that area is getting thight between CR 405, FM 1680 but West of James Gibson Survey upto Hwy. 90 East and Southeast of I-10 East.
This is the same area in which I'm told that an Investor armed with $300M to invest in land for NASCAR (Old Town), train depot, and air strip in Gonzales County, again bound by I-10 East, Hwy. 90 East, and FM 1680 (Old Moulton Road) outside of Waelder City Limits.
So, I said this to say Keys Energy Service and others are much interested in this same exact area, and I'm sure they are aware of our family cemetery and the available Moore Estate.
Now, that the DCP Pipeline is near this would be ideal for an operator and with all the state roadways maintained by TexDot, very accessible and to get to other outlier towns.
Tidal Energy is currently drilling it's 2-H new Eagle Ford well at CR 405 & CR 401, just SE of Andrew Chapel & Briscoe Unit.
Barabara, very positive and I would like to know if mineral leasing is movng then closer to the City of Waelder with Keys Energy Services and/ or they leasing to flip? They would need enough contiguous leased land to drill out in my opinion and I believe that Jill's Divine Resources "letter of intent" does expire either February/March 2013.
Keep us posted. Seth
Barbara Sample said:Oh brother--here comes Keys Energy Service in the Andrew Chapel area.
Hello,
My sister contacted Jill in regards to status, as we attended the meeting at Gonzales High School, and she replied in that e-mail in a generic way, "that everything was looking good, and should occur soon".
Of course she said to call at anytime in a previous communication.
Our property is located off of Farm Road 1115 in southwestern Fayette County, off of Maynard Hallmark Road and Father Anders Loop, just 7 miles north of Waelder.
Connie Manly
Seth, is it 120 days, or 120 banking days? Weekends and holidays can extend time considerably.
rwk:
That would normally be a great question to ask; however, I have a copy of her handout right here in front of me and it states as follows:
"Length of offer: At 5:00 p.m. on the 120thd day after the date this offer is accepted by Lessor as evidenced by their witnessed signature."
Then once again right above the signature line it says:
"This exclusive right expires at 5:00 p.m. on the 120th day after the date I sign this document."
I went to the meeting and got the paperwork; but, never signed anything. Looked on my calendar and didn't have the date the meeting was help posted, so I don't know the exact date of the meeting. I do believe it was in early October though.
r w kennedy said:
Seth, is it 120 days, or 120 banking days? Weekends and holidays can extend time considerably.
Bigfoot, I wasn't there, I think I would have liked to have been though. I would have thought that signing leases at that time would have been a bad business decision, but over all I thought it was a great idea that someone would say up front that " I'm trying to put a deal together, to the benefit of all, and I'm asking you to sign this letter of intent so I can try to make this happen ". To me the idea was original and refreshing that they didn't do the usual, " give me an executed lease and I will get back to you " with the part not said, if I can get enough of them and if I can flip them for a profit before I have to pay you ".
I say original and refreshing, although I'm sure it had happened before, because I found it surprising in this generation. The fact that it may not have worked, but was so well received by the community, leads me to believe that landmen are giving themselves a bad name for no reason. Landmen need not try to trick you into giving your lease for nothing, that the mineral owners would work with them if approached in an honest manner. I had thought this for some time, and this seems to confirm that I was right. I hope it happens again with better results next time. I hope Divine returns the leases with a short paragraph thank you letter because I think they would be a shoe in to lease those people later if they ever could pull a deal together. I think I am trying to say that there is room in the oil industry for doing well by doing good. What a concept!
On the other hand I think Divine could try to hold those leases, hold the mineral owners in a legal hammerlock ( from those who actually executed one ) on the grounds of a $10 binder payment and toss any goodwill that they may have gained out the window. I would be interested in hearing how Divine handles it.
rwk:
Interesting take of this situation. This lady, Jill Ferrell, had no credentials, she was just a lady that seemed to see a potential crack in the leasing activity that had taken place in high gear the previous year. I give and gave her lots of credit for attempting such a feat in the first place. She started this is the fall of 2011. At that time she was asking people to sign a commitment letter for 45 days. At that time she was trying to get a handle on how many people would sign up. At that time she allowed me to reformat her commitment letter to my choosing as long as we signed up so she would know the properties available for leasing. At that time there was no notary or any other organized legal paperwork attached. At that time she was offering $1500, 23%, 3 year lease, if the leasing activity worked out. She was working from North of Waelder way down in South Texas. One whale of a big area to try to tackle, especially since she was basically working this alone with the help of her new husband and some locals that pitched in to help.
I don't know if she ever got anyone to sign a lease agreement and actually flip any properties; but, that 45 days ran out and then she went to round #2. Basically the same process; but, for 60 days. The difference this time was that she had a number of Notaries set up to notarize the signed document. The second time was in the spring of 2012. Again, I have no idea how successful she was down South of Wealder; but, to the best of my knowledge, nothing was ever completed around Wealder or North of Waelder. Both of these first two sign up sessions were just that, sign the Commitment letter only. No lease signing at either of these two sessions.
The third meeting was much more organized, she held it at the Gonzales HS. She had lots of sign up help and support that day. She had a short formal presentation. Her offer this time was $1350, 23%, 3 years. Not only was she asking for people to sign the 120 day commitment letter, she was handing out her lease and asking people to sign the lease that day. She had Notaries there to witness and document the signatures and make it "legal"! It was a busy day for her and her workers. When I left there that day, people were scrambling to get the documents, including the lease and asking where do I sign. In my opinion, signing the commitment letter at that time wasn't a big deal since there wasn't much leasing taking place anywhere around here at that time anyway; but, signing a lease that they had never seen before and without studying it was absolute nonsense. What ever the case, many people were signing both without any hesitation.
To the best of my knowledge these documents were never filed at the courthouse, so I don't know that a formal release is needed; but, that can better be answered by an attorney.
I still take my hat off to here for trying and wish her good luck.
r w kennedy said:
Bigfoot, I wasn't there, I think I would have liked to have been though. I would have thought that signing leases at that time would have been a bad business decision, but over all I thought it was a great idea that someone would say up front that " I'm trying to put a deal together, to the benefit of all, and I'm asking you to sign this letter of intent so I can try to make this happen ". To me the idea was original and refreshing that they didn't do the usual, " give me an executed lease and I will get back to you " with the part not said, if I can get enough of them and if I can flip them for a profit before I have to pay you ".
I say original and refreshing, although I'm sure it had happened before, because I found it surprising in this generation. The fact that it may not have worked, but was so well received by the community, leads me to believe that landmen are giving themselves a bad name for no reason. Landmen need not try to trick you into giving your lease for nothing, that the mineral owners would work with them if approached in an honest manner. I had thought this for some time, and this seems to confirm that I was right. I hope it happens again with better results next time. I hope Divine returns the leases with a short paragraph thank you letter because I think they would be a shoe in to lease those people later if they ever could pull a deal together. I think I am trying to say that there is room in the oil industry for doing well by doing good. What a concept!
On the other hand I think Divine could try to hold those leases, hold the mineral owners in a legal hammerlock ( from those who actually executed one ) on the grounds of a $10 binder payment and toss any goodwill that they may have gained out the window. I would be interested in hearing how Divine handles it.
Very close to it. My friend Wes Luke leased on a 120 day draft (was eventually paid) but we were surprised after pulling up a calendar and doing the math it was somewhere around 170 days for 120 banking days. I think these days it's good to specify if it's banking days or not. I wouldn't want to settle the point in court because whichever way it went I would be out attorneys fees and in two months it could become a moot point anyway.
Seth said:
R W,
Late, to respond, but it states 120 days. So, if it did state 120 banking days, then this would mean at least 6 months and/ or 180 days?
r w kennedy said:Seth, is it 120 days, or 120 banking days? Weekends and holidays can extend time considerably.
Bigfoot, I would be glad to hear that the leases were never recorded. I would be inclined to give Divine more chances as long as they are up front. I hope that someone pulls it together, that as many holes as is reasonable get poked in the ground and possibly a few more, and that everyone who wants a well, gets one, sooner rather than later.
I don't think anyone can expect you to legally tie up your acres for years with no up front payment, they may hope for it but they can't expect it.
Seth:
Since I didn't sign and highly recommended to anyone that I knew or came in comtact with not to sign, I don't really know the outcome. What I do know is that they (DR) was even worried about putting out the $10 they were paying to get the papers signed. Their expense money was a big issue with them, so filing all these documents at the court house would definitely have been quite expensive. With that said, I don't believe anything was filed. Anyone signing the commitment letter only shouldn't have a problem; but, the lease could possibly be another matter without a release letter to render the signed lease worthless. I really couldn't believe what I was seeing that day. People were out in the High School hall, sitting all over the floor signing leases and letters and quite a few people were holding the papers up on the wall so they would have a flat place to lay the papers while they signed. As I said before, what a scary site!
Seth said:
Remember, some signed the actual contract, Producer 88 without reading and/ or the advice of an competent Attorney, first! And, at best this is a redeemable stay in my opinion and leaving Devine Resources as a forever part (stay) with those who signed the contract. But, the letter of intent was a face, and both requiring signatures; but like all things the bonus was TEN DOLLARS, for signing the letter, but there was no separate exhange of money if one signed the contract as well!
The meeting at Gonzales High School with DR was held on a cold morning of Saturday, October 27, 2012.
Seth:
I don't believe there is a good answer to that and that is the reason I highly recommended that no one sign any of the documentation, especially the lease. With that said, after the 120th day, the commitment letter for sure is void. If push came to shove and someone wanted to lease to someone else, she could potentially slow up the process and force the mineral owner to get an attorney to clear it up. Hopefully that wouldn't be the case though. Since I don't know what accompanied the lease other than the commitment letter, it is just a guess; but, I suspect it would be the same as the letter. An answer from a real attorney is the only one that can answer this. Even though it isn't smart to sign any of the stuff without expert advice, it is the easy thing to do; but, it ain't as easy to clean up the mess once the paperwork is signed. This should re-emphasize the word "CAUTION" any time someone puts a piece of paper in front of us.
Seth said:
Thanks, for clarification! So, you believe that those too, who signed the added contract with Divine Resources aren't on the hook, forever with Divine Resources and they like others who only signed the intent letter, a pre-requisite to the contract are scott free to release after the 120 days commitment?
I, believe Jill and Divine Resources will return, since many others are at awe of how her talents command so much in these neck of the woods!
Bigfoot said:Seth:
Since I didn't sign and highly recommended to anyone that I knew or came in comtact with not to sign, I don't really know the outcome. What I do know is that they (DR) was even worried about putting out the $10 they were paying to get the papers signed. Their expense money was a big issue with them, so filing all these documents at the court house would definitely have been quite expensive. With that said, I don't believe anything was filed. Anyone signing the commitment letter only shouldn't have a problem; but, the lease could possibly be another matter without a release letter to render the signed lease worthless. I really couldn't believe what I was seeing that day. People were out in the High School hall, sitting all over the floor signing leases and letters and quite a few people were holding the papers up on the wall so they would have a flat place to lay the papers while they signed. As I said before, what a scary site!
Seth said:Remember, some signed the actual contract, Producer 88 without reading and/ or the advice of an competent Attorney, first! And, at best this is a redeemable stay in my opinion and leaving Devine Resources as a forever part (stay) with those who signed the contract. But, the letter of intent was a face, and both requiring signatures; but like all things the bonus was TEN DOLLARS, for signing the letter, but there was no separate exhange of money if one signed the contract as well!
Connie:
Thanks for the date. I had something else written on my calendar so I guess I just neglected to write it down. I do remember the cold morning though. With that said, it looks like Jill's letter dies at midnight on February 24th.
Connie Manly said:
The meeting at Gonzales High School with DR was held on a cold morning of Saturday, October 27, 2012.
Hello all! I originally posted this message 1 1/2 years ago and can't believe how much great information has been generated by it. I appreciate all the posts and have learned a tremendous amount from everyone.
We just purchased another 100 acres adjacent (north) to the original 286 acres on CR 420 just north of 2814. We own the minerals and 1/2 of the royalties. BBOG leased our original acreage, but are not interested in the new acreage right now. It sounds like they are trying to recover from their capital outlay along with having pipeline issues. Additionally, they are a predominately chalk driller.
There is a tremendous amount of activity around us, but no drilling on our property yet, although they have asked us to participate in a unit for a well next door they are drilling.
Thanks again to all who have contributed to the post!
Reed
A small part of the high fenced property touches the back side of my new acreage. I purchased the Barley Ranch property on 420. I would like to speak with you at some point, if only to meet one of my neighbors.
Thanks.
Reed
Seth said:
Reed,
First, thanks for the referenced blog and it's creation for NE Gonzales County landowner/mineral owners alike! A great deal of the Eagle Ford well activity is following a trend of SW Gonzales to NE Gonzales County trend, which too trending SW to NE Fayette County.
Your right, much of the Eagle Ford activities should be to your East in and around FM 1680 and SW of Peach Creek (CR 405) just South of CR 420 of approx. 6 EF new wells, whereas these 2 seperate sites are the water suppliers for all the activity on the Eastside of FM 1680 (Old Moulton Road) whereas Tidal is drilling it's 2-H at CR 405, 401 and it's 1-H is on pumpjack and flaring. Now, the Briscoe well is a Newgent well on the NE CR 417 and leasing activity is currently undergoing for the Parson's, Hardaway's, Richarson's, etc. on that Eastern end of Old Moulton Road.
Now, I'm neighbors with the gentleman who purchased the 600 acres with the high fence on FM 2814 and he has an attorney searching and right now he say's there is nothing, and no one writing checks! Another, I spoke with an attorney who claims that an individual held out for more bonus money, and the O&G company became disinterested and when he lowered his demands it was too late in the same Mt. Eden community!
However, there might be hope in the future with the Pearsall! I believe that Sanchez and EOG is testing this strata, and the Buda and Edwards, too are being tested in various areas. And, like always, I hear that the technology is advancing, but remember too that Patterson just drilled too in that area and abandoned a Austin Chalk well on FM 2814, and never drilled out the second one! Hope, this helps, but hang in there.
William Reed Moraw said:Hello all! I originally posted this message 1 1/2 years ago and can't believe how much great information has been generated by it. I appreciate all the posts and have learned a tremendous amount from everyone.
We just purchased another 100 acres adjacent (north) to the original 286 acres on CR 420 just north of 2814. We own the minerals and 1/2 of the royalties. BBOG leased our original acreage, but are not interested in the new acreage right now. It sounds like they are trying to recover from their capital outlay along with having pipeline issues. Additionally, they are a predominately chalk driller.
There is a tremendous amount of activity around us, but no drilling on our property yet, although they have asked us to participate in a unit for a well next door they are drilling.
Thanks again to all who have contributed to the post!
Reed
Could you please let me know if there is any new development out there? I have 24 acres on CR458.
Seth did you repliy? I received notice that you had, but there was no message.
I don't much about the town, but to get there I use 90; past the the police, fire, ems, and county house. It is the first "road" on the right after leaving town.