Lease rates in section 20

Texas Mineral Rights Reeves County, TX
21

I'll have to look up the tax statement when I get a chance.

The company we have gone with in the past few times was Compass Operating.

Endeavor Energy bought out a big portion of Compass Operating.

Buzz Van Meter said:

Susan -- it is on your tax statement.

For the life of me, I cannot find your description in Reeves County: "My section is 19, block 7 H & TC Ry. Co Survey". The only H & TC Ry.co. Survey I can find is BLK 1 on the Reeves/Pecos County line.

What company renewed your lease?

With more information, I will help locate your property. Later -- Buzz

22

Wade, the answer to your question is on Block 58 sec 16 the well head is still on the land, as of April 2012. We also signed our lease around the same time as you did on sec 14. I have looked at maps and cannot tell if our land is in the package the BHP has up for sale. Have you checked this out?? It looks close.

Wade Meeker said:

I have to check the files at the office for the exact date. Also, if you notify the RRC that they never cleaned up the property they will fine them and penalize them. Did they plug the well or does it still have an old well head on it?
23

KLH, Our section 14 56t2 is not in the sales package. BHP is keeping their acreage in northern reeves.

24

Wade, I was referring to Block 58 Sec 14

25

PSL?

26


Wade, yes. We have Block 58 Sec 15-16 PSL. You said you had Sec. 14 in the same block.
Wade Meeker said:

PSL?
27

Sorry. Got confused. I’ll have to check when back in office on Thursday.

28



Kenneth L. Haag said:

Wade,

At this point in time we have no interest in selling. In a few years, due to advancing age, we may think of selling if the price were high enough to make it worth while. However, we would be interested in selling all of the tanks etc. that were left on the land from the previous gas well that the past company left. We were surprised the company wasn't required to remove all of their equipment from the land when closing up the gas well.

If I may ask, what year did you sign your lease with BHP??

Marie Haag

Wade Meeker said:

Honestly, If you sell your rights, you are going to be kicking yourself silly later. Petrohawk has our section 14 of the same block.

Lynn Wood (for whatever reason this did not post in a separate indented block)

I was reading the November issue of Permian Oil And Gas magazine, (online) there is an article about a pipeline appraiser, David Howell, who specializes in salvaging and selling abandoned pipeline. BUT, he has to first determine if the pipeline and equipment is truly abandoned and can be removed. Apparently just because a pipeline and attached equipment is left behind, capped and sealed up, does not necessarily mean that the land owner may dispose of it. Sometimes he gets the different outfits to allow the equipment to be removed for a portion of the salvage proceeds.

But anyway, you might want to talk to him first before deciding on anything about the 'tanks etc" left on your property.

29

Buzz I know you posted this months ago but I am just now reading it and wondered what it means when you mentioned "...the lateral was compromised"...I own a partial interest in this well.

Lori Scott

Buzz Van Meter said:

Thomas – I have your Section 34 spotted 7.9 miles NNW of Toyah, A-4387, I believe. Petro-Hunt/Chesapeake (now Shell) has you surrounded with deep Woodford Shale horizontal gas wells drilled prior to late 2008 when natgas prices cratered. Might CHK have had your lease that expired?

In early 2012 Energen drilled a horizontal well, the COTTONMOUTH 58-47 #1, A-1530, 1-1/2 SSE of you in Section 47. The well was completed by Petrohawk/BHP in a joint venture with Energen. Early reports by Energen on the completion were that the lateral was compromised.

$2,000/ac bonus is interesting, IMO. Let us hear who the suitor might be? Later -- Buzz

30

Lori -- info from Energen CC... "Only 2,800' of 4,000' lateral exposed to stimulation due to obstruction problems." In other words, the well would most likely have been a better producer if not for mechanical problems with the lateral completion. Later -- Buzz

31

I visited the site in person over the weekend and it is really spiffy and all set up and poised for "something". We have moved forward with an easement agreement for a pipeline and can't help but hope that they (BHP)wouldn't be moving forward if the well was a total "bust".

32

Hi Buzz. Our previous lease on Sec. 34 was with Petro-Hunt, is that the same as Petrohawk? Energen was in on the bidding for this latest lease. What do you mean "the lateral was compromised?" Our current lease is through Total Field Services with Cimarex - is that good or bad? I will NOT lease thru TFS again, they were very disorganized and didn't seem to know what was going on in their own office.

Appreciate all your help and advice

Tommy Beauchamp

33

Lori --

è ... hope that they (BHP) wouldn't be moving forward if the well was a total "bust". ç

I didn’t mean to insinuate such... good luck!

Thomas –

è ... Petro-Hunt, is that the same as Petrohawk? ç

No.

è Energen was in on the bidding for this latest lease. What do you mean "the lateral was compromised?" ç

See response to Lori, 2 posts above... I report, you decide. The well Lori is speaking of was a joint venture between Energen and Petrohawk (now BHP).

è Our current lease is... with Cimarex - is that good or bad? ç

I would be comfortable with that. Later -- Buzz