How are things going in dimmit county - seen a few drilling permits issued since the beginning of 2015? Hoping activity picks up this year - not holding my breath but I haven’t heard good or bad news in this area! We are leased with Chesapeake-
We have a lease with Chesapeake in Dimmit County. Royalty checks have been declining almost every month since they started in March 2014. That is expected given the declining oil prices. However the March check which reflects royalties for December 2014 also showed a dramatic drop in production…almost 50% less then two months previous. It’s hard to believe production would drop that fast and I am now wondering if they backed off production because of low oil prices? That doesn’t seem likely given the investment in drilling equipment. Any thoughts?
Did they put a pump jack on your well? Other than one time royality checks have declined on our well. They could have done a rework or chocked back - who knows- they (Chesapeake) doesn’t tell much!
Andy, A 75% drop in production by the end of the first year is pretty common. 50% does indicate rework or perhaps they choked the well back due to low prices.
Hi,
I own 50% of the mineral rights to a property in Dimmit county. About a decade ago, I was given a small amount of ernest money for an oil lease but the oil company let the lease lapse. The company had a hard time finding us before we were paid the ernest money, and I'm worried that we will not be contacted if there is any sort of activity that has happened on the property in the last 10 years. What is the best way for me to find out if there have been any leases or activites going on in that property. Once again, I only own mineral rights, not the rights to the land. Thanks in advance.
Valdemar, what is the location of your ownership?
It is about 4 miles northwest of Carizo Springs.
Valdemar,
The Texas Railroad Commission maintains a searchable database that might be helpful. See:
http://www.rrc.state.tx.us/about-us/resource-center/research/online-research-queries/
Thank you Andy, but I do not have the info that would be needed to conduct the search. Well # company name ect.
If an oil and gas lease was executed during 2010 and expired 2013, but the oil company only paid one of the land owners (owner A), who had a 50% interest in the property—but not the other owner (owner B), who owned the other 50% of the interest, can owner B still seek back payment for earnest monies, as well as any royalties from production?
Can someone tell me what companies are buying mineral rights in Dimmit County? My legal for the mineral rights is below. Thanks.
Being 10 acres of land, more or less, out of the Francisco Pereyra Survey, Abstract No. 3 and being all of Lot No. 28in Section No. 188 Cross S. Ranch Subdivision
Question - my other in law and I were having this discussion last night - about a year ago our well was re-worked and a pump jack was installed - my mother in law seems to think that our well was re-fracked when it was re-worked and the pump jack was installed! I was not sure. How do we find out if our well was re-fracked at that time - we are in Dimmit county A1045. - leased with Chesapeake- we are about 3 miles south west of Asherton?
Stuart - CHK is adding artificial lift (such as a pump jack) to many of their wells. When the do so, they don't re-frac the well - at least they didn't on ours in NW LaSalle Co at the beginning of 2015.
In wells producing liquids from shale formations (and other tight rocks), companies install artificial lift to increase the ultimate recovery from the well. Artificial lift increases the difference between the down hole pressure in the well bore and the formation pressure. As a well produces, the formation pressure will decrease, making it harder for the formation pressure to push the liquid (oil and water) up the well bore. And in tight formations such as shales, the shales don't give up their oil and gas as readily when the pressure in the well gets close to the formation pressure. Companies have found that by installing artificial lift, they can accelerate the production and actually increase the amount the well produces over its life. See CHK's Analyst Day investor presentation from May 2014 - slide 42. On their website here. In the slide they discuss the economics of the investment and show how it accelerated production when averaged over 95 wells in the Eagle Ford.
BTW, earlier this year when CHK installed the pump jack, the cost was $140,000 - as reported on their internal daily completion report, which we get.
Hope this helps.
G C Gill - thank you so much for your time and reply - I agree with you but my mother in law is still adamant about our well was re-fracked during the work over and prior to the pump Jack being installed! I think she is a little confused. I think they clean the pipes prior to pump Jack being installed but believe we would have received additional written information such as another DO if re-fracking was done - any additional thoughts would be appreciated!
Stuart - sorry for delayed reply. I doubt they re-frac’d your well before installing artificial lift. I don’t believe CHK has been doing that so far - at least they haven’t mentioned it to the investor community. Or have I missed something?
But even if they did re-frac your well before installing artificial lift, there should have been no reason for them to change the configuration - and thus the ownership - of the drilling / pooled unit. Therefore there is nothing to trigger the need for new DOs. This would apply whether you have a large tract and your minerals make up the entirety of the unit, or your minerals are pooled with neighboring minerals to make up a unit.
Hope this helps.
Looking for mineral owners under lease with Exco. I am noting that they are failing to pay for gas. Understand that they have told others that the cost associated with processing, transporting etc is in excess of the revenue from gas sales and thus it is omitted from the revenue disbursment checks. Several of the wells allow for deduction but the latest one clearly excludes any and all costs and says to the extent incurred, they must be added back. Does anyone have a strong default letter that I can use as a base for sharing my feelings towards them?
We own approximately 10% of a tract comprised of Abstracts 149, 150, 151, 154 and 155. Much of the other 90% is under lease with expirations over the next 24 months.
Our leases have expired and the prior Lessee has asked to extend. The lease is a 25% cost free royalty, paid up lease. They would like to extend but are stating that the economics are poor, market is down, going rate has declined,etc.
The initial offer for extension as it relates to the bonus was $225 per net mineral acre. They have now said that they can maybe do a cost free royalty at $400 per net mineral acre for 18 months.
Additioally, the prior lease included bonus and a development penalty of $1,150 per net mineral acre and the Lessee is now reporting that my ownership in these tracts has been determined to be 15 net acres more than what they represented three years ago. Because of difficulty determining title, as this is two thousand acres made up of ten acre tracts, I have a side letter agreement whereby the landman "guaranteed" that the oil company would pay on any additional net acreage determined to belong to me and if they did not, he would personally.
Upon further inquiry, the landman said that the final accounting showed that I owned less than one additional acre. He is no longer directly associated witht the company and I have a new contact.
Is anyone out there in a similar situation and what is market for an 18 month term when aproximately 90% is leased and thus expiring to include all depths with a cost free 25% royalty? How would you address this shortage and renewal?
Does anyone have information on how to obtain an aerial photograph of the wells on my property? I suppose there's a report on the RRC website I could run I just don't know which one. Thanks for any information.