We were enjoying substantial, steady Royalty checks from VITRUVIAN, and then from GULFPORT MIDCON LLC on our Grady Co. wells:
Cheyenne 1-10X3H/2-10X3H Grady 003-004N-006W
Chitwood Boatwright Sand UT Grady 004-005N-006W
I understand that VITRUVIAN has sold it's interests, and have experienced drop offs in production on Horizontal wells, but this was an overnight 95% drop in income. Can anyone offer any insight as to what is going on? Is there a way to vet individual wells? I have attempted to contact their Royalty relations via phone and email.
Same here!! Gulfport checks on wells they took over on from vitruvian are much less than when vitruvian was the payor. Our well are vertical. 03N 5W and 04N 07W
I emailed Gulfport RE drop in revenue, here is response:
The check amount has dropped right now because the Cheyenne 1 and Cheyenne 2 are shut down while they bring the North Cheyenne wells online. Once this is completed these wells will return to regular production.
I asked for time line, response:
The last I had heard was that they would be down for a few months, but they weren’t sure of an exact timeline.
Hopefully we will be receiving our royalties soon. WSD
My dad just got those same letters… Looks like 6 additional wells in the Sycamore, Woodford and Hunton common sources of supply. That will make 8 horizontal wells in those 2 sections. They just finished fracking (or about too) the Miller.
Other than having been spud back in March I do not recall hearing anything on the KAEL 1-17X20H (Section 17-4N-6W). Some right-of-way was purchased for a pipeline according to documents filed with the Grady County Clerk’s Office.
I am getting the same letters, sections 12 and 13 4N 6W. The odd thing is, they are sending it to the family trust c/o to me. The trust has been dissolved since 2012. Hmmmm
Thank you for the reply Todd, although I’m not quite sure what you mean. I do know our lawyer did miss a lot of my families mineral holdings and percentages.
My siblings and I are going to be actively looking for an attorney familiar with Grady, Caddo and Garvin counties.
Alex- Although the trust may have dissolved as per the terms therein, that information must be put into a conveyance document from the Trustee(s) to the beneficiaries of the trust. Those documents need to be filed in the counties where the minerals reside, and against those specific sections of land.
David,
I leased to them last year and did a bit of research. I have since followed them a little bit.
There are several Warwick companies under the Warwick Group, a private equity group.
The CEO and founder has a history of energy related equity funds prior to forming this company. There were capital investments into many more company names you would recognize.
Warwick Energy, Warwick-Ares, Warwick-Jupiter, Warwick-Minerva, Warrwick-Baccus are the ones I can think of. They have traditionally been a non-operator in these ventures. I suspect that the various -xxx versions have different investors or a different focus. This year, the have started entering into the operator status. I know there have been applications in various counties, but I believe all of the approvals so far have been in Grady county. There know there have been some applications in Stephens and McClain
Traditionally, they were very aggressive in obtaining leaseholds, offering some outstanding bonuses. My dealings with them last year went smoothly and favorable. I have not heard of any issues, but always proceed with caution in your negotiations regardless of other’s experiences. Good or Bad can be dependent on the contract landman you may be dealing with and your ability and understanding of the negotiation process. I certainly did not take the first lease language I was given.
