Rock man you really know your stuff. Thank you for all your prompt attention on this matter. Would you happen to know about Simon Weiss survey in Henderson county if there is going to be conventional or unconventional drilling in this area. I would like to know which company might drill. I signed a 2 year lease about 1 year ago with Key Explorations. Everything has been leased in this area. Seems like a lot of money for them to not to do anything. Thank you, Ryan
Key production is the same as Maximus who are doing the drilling that mentioned earlier. This is for Paluxy conventional target.
Maximus / Key has already drilled a couple of wells in this area. Their units do not include acreage in the Simon Weiss survey - only the survey to the east of it. You can go to Tx RRC GIS site to see these locations and well results (a couple of marginal oil wells).
No idea if Maximus / Key will end up drilling on the Simon Weiss block - as I mentioned their well results are not that great so far. But they may end up selling their Goodland (unconventional) rights to another operator who is active in the area (e.g. Chesapeake, Carrizo, Clayton Williams, etc.) if they are interested in doing such a deal with Maximum/Key (who are not unconventional drilllers).
I recently see that Reagan is leasing for Carrizzo around the Weiss survey. Anybody know what top $$ per mineral acre is for a lease in this regard. Also, Carrizo is leasing from Parker survey over by Ned well east to Weiss survey close to Paluxy. My question is are they interested in the Goodland or Paluxy play, or just generally trying to get lease position so they can sell to the highest bidder?
Is Carrizzo ok to deal with ultimately or should we wait and try to go with someone else.
Any help is greatly appreciated. Thank you
J. H.,
Check out this link to the NED well and you will see that it is an Exploratory Test Well, so they will be checking all the formations in that area.
Clint Liles
Carrizo is a very good unconventional operator - check their website for their Niobrara efforts in the Rockies. Plus active in the Eagle Ford in S Tx.
Odds are that they are chasing the Goodland Lime and no the Paluxy.
Others known to be leasing in this area are Chesapeake and Clayton Williams.
Don't have any info on top dollar but the numbers I have heard have been in the less than $500 per acre range. Key is the royalty - wide range there up to 25%
Thank you for your replies.
Rock Man Did the sale of the Stroud lease on abstract A-581 get completed?
The Stroud block was in the Dec Oil & Gas Clearinghouse auction earlier this month. I am assuming that it was bid upon and acquired there is no public record of the results available.
Assuming the block sold (there is a chance that no one bid on it), on would expect to see filings indicating the operatorship change start to show up in 2-3 months. As well as signage changes on the locations.
A new W-2 RRC filing seems to say a well is only 170 feet from my proved mineral lines, instead of a legal 467 feet.
What is the usual relief on an illegal location ? The well is producing 500 BOD and 2 mmcfd.
retrieve res,
If I were you I would present this question to the 'RRC Technical Issues' folks at this link:
http://webapps.rrc.state.tx.us/DP/footer/IO_Contacts.html
I have always had a good and timely response with my questions I have presented to them. Good luck.
Clint Liles
Thanks Clint. I did that. I also googled under non-consenting co-tenants in Texas and found some interesting information.
And found the discussions on Rule 37 exception also.
If this is a horizontal wellbore, the distance is measured from the first take point to the last take point for spacing purposes. If the wellbore is not on you, then you can never be a non-consenting co-tenant.
retrieve res,
What is the API # on the well in question?
Clint Liles
I have a question which I hope someone can assist me with. I have mineral rights on the James Latham Survey in Rusk County. Forrest Oil is in the process of building the platform so they can drill for natural gas (is my understanding). I had a 3 year lease with a 2 year renewal. The renewal kicks in March 13th 2015. Do they have to actually be drilling in order to not have to pay the bonus OR do they have to have an approved permit to drill to not have to pay the bonus??? How does this work? I am grateful they are finally going to drill (of course now all the prices are so dang low on the market) but I sure could use the bonus payment. Can someone shed some light on how this works? Thanks. Cathy Kurtz
Cathy,
Odds are that your lease wording stipulates that the operator has to have ongoing operations taking place when the March 13th date takes place to avoid having to pay the extension. In some cases, they may not even need to have a rig on location but only have the pad constructed to avoid the extension payment.
With Forest (which is technically now Sabine O&G due to recent merger between the two companies) putting location in now, they are almost definitely trying to avoid having to spend the extension money (sorry for that bit of bad news)
Cathy,
look at your lease to see if operations is defined as something like the drilling is underway with a drill bit moving. If you have that kind of language, you may be in luck. I always define what operations mean in my leases. Good luck
I received a certified letter from Atmos Energy whereby Atmos is notifying each owner pursuant to Statewide Rule 96 as Atmos is submitting an application to amend an existing storage project permit. Atmos appears to be seeking permission from the RRC to "...amend its existing permit to operate the Tri-Cities (Bacon Lime) and Tri-Cities (Rodessa) Gas Storage Fields to allow for the drilling, completion and utilization of new horizontal gas injection and withdrawl wells in the facility located in Henderson County, TX."
The field is stated to have been actively and continuously operated as an underground natural gas storage facility since April 23, 1956.
Can someone tell me what if anything I need to do on this? As a point of reference, I believe I have received $235 from Atmos since 2001.
Re: Stroud Petroleum Block
Just saw this property posted for sale on DrillingInfo.com. This means that it did not sell in the December O&G Clearinghouse auction for either lack of interest or not meeting a theoretical reserve price set by the seller (Stroud).
This definitely has some salvage value for equipment but in today's low price world, that value has dropped signficanly too.
Looking for information regarding the R.J. Martin A-561; R.D. Williams A-895; J.R. Smith A-704; J Mullenix A-561 Surveys in Henderson County
Thanks!