Excellent comment, Bob.
In addition to everything else, the royalty payment provision of Bob’s lease requires the payment of royalties in a timely fashion or they lose the lease.
Buddy Cotten
Anyone heard anything on Penn Virgina coming out of bankruptcy.
Unfortunately, it will probably be a long time before Penn Virginia is out of bankruptcy. My operator, Sabine, filed for bankruptcy protection about a year or more ago and is still not out. In the meantime, Sabine has not, of course, developed or drilled the rest of the unit containing my well. They are, however, paying royalty on my well’s production. As recognized by the court, Texas law (and most likely the law in other states) recognized an oil and gas royalty as a property right, owned by the land or mineral rights owner. With that right the owner is not a creditor and the operating company must pay the owner’s royalty his/her royalty from the sale of production. In the Sabine case the federal bankruptcy court in New York expressly stated that in an order. The court also provided that Sabine could pay salaries of (presumably necessary) employees.
So you could probably phone Penn Virginia, but an employee would likely not comment on the bankruptcy. Sometime later PV royalty owners will probably start receiving information from a court clerk.
Appreciate the info. Yes we are receiving our royalty payments and in a timely manner. Was hoping that the process would be short enough that if oil rises above 55 or so they could get back on the pads.
MR. ML, You have amazing ability to find the source of useful information.
Sabine was apparently so far in debt that it could not induce creditors to cooperate. Or maybe their CEO didn’t even try.
If all goes as planned they will be out of bankruptcy this fall. One of the last court hearings is coming up. Penn is not like Sabine…Penn had all creditors approve a course of action before filing…they are just going through the motions…Penn already has $200 million ready to go to drill after this is done…and prices are right…
lkweis—what area of Lavaca county are you in ?
Gabby-no leasing in your area, and per the EF maps you are probably only a contender for Upper EF down the road. Basically if you go out about 2 miles east of Shiner and then draw a line to the northeast…the tracts to the left of that line are possible candidates for some EF activity. In my opinion, as you get closer to Hallettsville, or by St. Mary’s church over there the odds of drilling are extremely low, as well as any leasing.
lkweis–your area has not been proven. However if oil ever returns to $100 again and stays there a while ,some speculators might lease that area again.
The fact is there really is no leasing in Lavaca county for Eagleford potential units. New leasing right now is in Fayette county, for operators going into the Austin Chalk. In my opinion new leasing will not start until we see oil at $65+, and this leasing will only be next to existing units. the EF leasing boom has been busted about 2 years ago and will be some time before EF leasing will take place miles from existing proven wells. Right now operators in EF who are still drilling are only maxing out their present units. Permian basin has become the place to be. The likes of Pioneer and EOG are selecting Permain over EF. Also when leasing does resume, don’t expect the high offers that went out in the last EF boom.
Gabby & Mr ML - my familiy’s land is southeast of Shiner towards Yoakum off of 90A - thanks for commenting, it’s seems that when the price of oil went down so did this forum. We need to keep the communication open so when oil companies start leasing again we have updated info on which companies & how much acreage is going for. Thanks
anyone know anything about Shiner Exploration Co; Jeff Voelkel? http://texascompanysearch.com/shiner-exploration-holdings-llc
Delago is active again in Shiner area
Any new leasing, if so what rate/royalty/ term offered & in what area/ what company or landmines in area.
On 11/16 Penn started a 1 rig drilling program that starts on the Sable Hunter Unit. Go to Penn Virginia’s website, and here you can listen to the webcast and or see the slide show presentation. Basically, they are only going to drill in current HBP units that are west of Hwy 95. All leases that are due for option now through 2017 will not be picked up, and no new leasing will be done as well.
Noted that now that Penn is out of Bankruptcy they are drilling again. Right outside of Moulton on the Gonzales highway. About 3 miles out of town as the crow flies.
Penn has is now fracking KUDU and is moving on to ZEBRA soon. All are being drilled on HBP leases that already have pads. Is there any way to find out which HBP they are going to drill on in 2017 other than waiting for the permits to appear on the rrc site.
Checked out the presentation. We are on the high pressure boundary side being about 1/2 mile to the west of hwy 95. We are HBP on the Pavileck unit. they drilled about 3 years ago. The wells still are not on pump jacks and and the two wells are still doing approx. 2K barrels a month. I know were originally slate for a couple more wells and the oil pipeline easement is on the property next to the well. Have my fingers crossed
Even if you have "contacts’ with Penn…they often change their mind at the last minute. However…they are only going into HBP units that are in what they are calling the high pressure boundary on the west side…see map on page 6 of their last presentation. This would have all new wells west of Hwy 95…and when looking at the map of Penn’s AREA 1, very little is in Lavaca county. They will test one well in one unit on the east side of 95 in 2017.
It is fairly close to a 50/50 split. We start off on the west side of 95 and end up at the most a quarter mile on the east side. The one they have just put up starts in Gonzales county and ends in Lavaca. about 4 miles away from us.
Total prod to date on the wells is 216,000 barrels of oil.
My maps show that your laterals shoot southeast from your pad, and runs mostly on the east side of 95. You could be a candidate for the east of 95 test well…but right now Rio Lavaca Farm is being discussed per my contacts. The line they will follow will be following the southwest /northeast path as they have been doing for these new wells…a good mile+ west of your unit. However, like I said…things change all of the time.
All the wells drilled around us have never had pumps and they are all three years old so I know we have good gas pressure. Freytag, Pavlicek, Vana. and the test well across the road that was MARL from what I understand