Update - One of my family members spoke to Hershel at WH about a month back. He responded quickly to our initial call and was very friendly. He mentioned that he would get back to us in a couple days regarding our current and potential leases, but unfortunately we have not heard back from him. We have reached out several times, but no response as of yet. Hoping he made it through Harvey okay. Has anyone had any interaction with him or anyone else at WH in the past couple weeks?
I just received a check from Wildhorse re lease extension option payment. It was the same amount as my original lease with PetroMax. It has a lease ID and that is all. Would love any comment.
Go back to your original lease and read it. You probably have a clause in there about an extension. The new check will extend the lease under the original terms. A bit of encouragement that they are still interested in the area if the extend the lease. If they were not interested at all, they would not do so.
I got a check from Wildhorse this week in the same amount of the original lease. My three year original lease with PetroMax will be up Oct 15. It just said in a letter extension of lease option and gave a phone number if I wanted more info. It looked like a form letter --very brief. Has anyone else had activity recently?
I got a check from Wildhorse this week in the same amount of the original lease. My three year original lease with PetroMax will be up Oct 15. It just said in a letter extension of lease option and gave a phone number if I wanted more info. It looked like a form letter --very brief. Has anyone else had activity recently?
I got a check from Wildhorse this week in the same amount of the original lease. My three year original lease with PetroMax will be up Oct 15. It just said in a letter extension of lease option and gave a phone number if I wanted more info. It looked like a form letter --very brief. Has anyone else had activity recently?
Sorry --did not mean to re-post my last comments.
From recent experience in the Burleson County area with the producer being Wildhorse, what is the time frame from when a survey is done to when the landowner is approached for signatures/negotiations? I guess what I am getting at is what are the steps and what is the time frame for the process from when the survey happens to the wells are completed? I understand that this may be to broad of a question, and I can understand if it can't really be answered that simply. Thanks in advance for the help.
C Mc - I don't understand what you mean when you say "survey". Is this in reference to a company analyzing your lease position in the courthouse? Or something that is done on a well that has been drilled? Just trying to clarify prior to attempting to address you inquiry from earlier today
Rock Man, There was a company out surveying some of our property and had a sketch of what the plat was going to look like for the 640+/- acres that would be captured. My understanding was that they said it would be a single pad with four horizontals wells. This is second hand information from another family member. Thanks for the help.
C Mc - OK, that is what I needed to know. With the operator already surveying for drilling / production unit layout (which will be part of the Tx RRC permit process), they are "committed" to moving ahead (at least as to formally permitted wells). With this in mind, I am surprised that you have not yet been contacted about leasing your minerals. They would not have done this work / pre permit effort unless they already had a good percentage of the proposed unit already under lease.
Two options here - just sit and wait for brokers to contact you or be proactive and reach out to the WH contacts that you may know about leasing? Personally, I would like them come to me - and seem too eager to lease. Lots of negotiation coming as to all aspects of lease terms to get you a good deal that WH will also be satisfied with.
On a broader scope, I would say that from pre permit surveying to eventually seeing the first lateral drilled and completed and producing and receiving a division order and then royalty checks will take 9 to 12 months. Note that this is a VERY generalized time frame. Could be shorter (e.g. 6 months) to much longer (a couple of years).
That clears up several of my questions, thank you. Another question that leads in to though is that WH already has leases for wells that are in the Austin chalk that are still producing on this land. Will they just operate under those same leases and the only thing we would see are division orders and checks when it comes time?
C Mc - if there are already actively producing wells here (shallower AC), then - unless these older leases had a depth severance that would serve to "release" deeper mineral rights under the producing zone (AC), no new leasing is needed since the original leases are all "HBP" or held by production from the AC. SO if you have been getting checks from the AC wells, only thing to do now is just wait for new deeper wells to be drilled and completed.
And watch Tx RRC for new permits on your block.
Good luck on all this!
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Why is the northern most part of Burleson county not that attractive to drilling ? I've seen the map and it shows the Eagle Ford formation going right through that area...
Eagle Ford is less thermally mature in the northern Burleson Co area. Leads to much thicker oil in the system and lower reservoir energy due to little to no gas. Very hard to move the oil from reservoir into induced fracture systems in laterals
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