In a 282-page assignment document filed in Robertson County on March 26, Comstock has acquired the rights to the Lower Bossier/Haynesville interval in more than 14,000 leases owned by Hilcorp Energy I, LP. These leases are located in Robertson, Limestone, Leon, and Freestone Counties.
The acquisition is effective September 1, 2023 in accordance with a Purchase and Sales Agreement dated March 15, 2024.
So Comstock has acquired the deeper rights associated wwith the wells in this area that Hillcorp recently purchased from XTO?
Don’t know if that is correct or not. The Comstock deal is with a Hilcorp limited partnership: Hilcorp Energy I, LP.
I was told Hilcorp reserved up to the Cotton valley. I have not seen it yet.
Comstock’s acquisition is limited to the depths from the base of the Bossier Reagan Sands down to the top of the Cotton Valley Lime.
Sure hope this Alabama ferry in eastern leon county is in this deal. Hilcorp owned it a few years ago then sold it then i think they got it back from no payment. Now no one really knows who owns it. Most of the location are grown up except a few of us that keep them mowed.
How does that affect the leases involved? The RT Glass 1H sits on my survey BM Lewin A-485 but I am told I can not participate in royalties in any manner because I have no Pugh clause.
Thanks, Joe
Joe, unless there are some situation involved that I’m not aware of, I will see if I can answer your question. First of all, I assume your interest in the Lewin is held by production from the King Cobra and that lease has no release clause of any type, either unit boundaries or depths? If that is the case, then you would not be subject to BONUS consideration for a new lease because your interest is held by production. However, after Comstock acquires the rights to your lease, you WILL BE subject to receive ROYALTIES. At this point with what I know, that appears to be the case. Does this make you feel better?
Mr Sartin,
I was surprised when the landman from Surprise Valley actually called me back after I a few months. He said they even held a meeting about it and no I could not participate. Maybe he was talking only about the bonus. Yes your diagnosis of my situation sounds exactly right. Your assessment is what I thought before the landman dashed my hopes. At my age maybe my granddaughter will now benefit.
Thanks so much for your prompt reply,
Joe
All my best to you and your family.
Phil
According to the footnotes in Comstock’s Q1 2024 financial report, Comstock gained approximately 189,000 net acres through this deal at a cost of $50 million. That works out to about $265 per net acre.
Alan: Do you know anything about a possible Comstock buyout of some OLD gas wells ( Sun Oil 1950s) currently operated by Crescent Pass?
Mr Sartin, You were right. It will be a very small percentage, because the well is so close to the survey boundary, but it’s something. Joe
Mr Sartin, Do you happen to know what my relation with Comstock will be since I could not have a lease with them? Will I have a common royalty interest, a non- participating royalty interest, a co- tenant interest, what? Thanks Joe
Mr Herrington, So the area below the surface of a lease is measured in acres too ? When I read your report on Comstock’s Q1 about the acreage they bought, my first thought was they bought the entire leases. Joe
No, I’ve heard nothing (yet) about a purchase of Crescent Pass wells.
Yes, the allocation is quite small.
Joe, you may call me Phil. I have seen evidence that Comstock acquired the deep rights under certain leases in the King Cobra. Since your lease didn’t have a clause that would release land outside the boundaries of the King Cobra unit, all of the land in your lease has been held by production. That is to say, the land in your lease is still valid and Comstock could not lease it from you because of that. So, by assignment of leasehold, Comstock acquired the obligations as lessee under your lease. Have you received a division order from Comstock? All they have to do is pool your lease and you will be subject to production of the Glass well. It appears that you will have the usual relationship with Comstock as lessor/lessee. I hope this answers your question. – Phil
Comstock has simply acquired the right to access the Lower Bossier/Haynesville interval in all those acres.
Phil, Yes I did receive a division order. According to the permit,I think I am pooled . Being pooled is the reason I can share in the well and not the fact that Comstock now owns that depth under my survey? I think being pooled is the reason I could receive royalty from the King Cobra as that well is not on my lease. It appears that being pooled is not always a bad thing as I’ve read. Joe