Hi Joe, I was given the same offer as you.
I was told by the Landman a lot of phone numbers are no longer in service. He attributed that to cell phones.
I hope it turns out well for you if you decide to lease. Unfortunately, I was informed my land is held because of production on the well it is pooled with. I may have an attorney look at my old lease because I think I had a Pugh clause. Maybe the pooling overides that ? My dad told me to watch out for oil companies as they can be sneaky.
1/5 th is the royalty. How did you find out that your lease is pooled? Wouldn’t Surprise been aware of that?
My land was pooled with the Christian Stucky survey upon which King Cobra#1 well sits. 1996. Partially good I guess. Otherwise I would have gotten no royalty because Stucky is not my land. Not so funny story about that well. My uncle who lived about a mile away and knew what was going on, said I would be making 60,000 a month. But a wrench was dropped into the borehole! For whatever reason, they couldn’t get it out. Maybe cause the well was over 18,000 feet deep. I got a little, but several zeros short.
Oh no!!!Thats horrible!!!
Oh well, easy come easy go.
@acurmudgeon you should still be receiving royalties from the King Cobra well. In addition, I found your lease. You do have a pugh clause, which should free up at least a portion of your land to lease. Do you have the name of the landman that reached out to you from Surprise? We own some minerals several miles north that I would be interested in speaking to him about. Thanks!
Yes, I still receive a very modest royalty. The landman just informed me that unfortunately the land is held by the original lease that did not have a Pugh clause, not the top lease. His name is Randy Hollenkamp
Surprise Valley Resources LLC offered me $375 / acre bonus for 153.8 acres, 5 years, royalty 1/5 this week January 2021) in Leon County. I have an O&G attorney reviewing the offer now
Was the offer from Randy (landman working for Surprise?)
Congratulations. I wonder if 5 years rather than 3 is becoming the norm.
Jerod Fiebiger is land man at Surprise.
Description: 143.80 acres of land, more or less, out of the J.B. & J.E. Therrill Survey, Abstract 877, the W.H. Wilkinson Survey, Abstract 947 and the N.E. Thorne Survey, Abstract 1330, Leon County, Texas, and being described as the following three (3) tracts of land…
Yes. Surprise Valley Resources is leasing in Leon County. It appears that they are also leasing in Robertson County. They are offering $350/acre and a 5 year lease. That seems to be the going rate. Apparently the area that they are interested in is West of I-45. They will be permitting a well within the next 2 months. We recently signed a lease with them.
Are they going for the pinnacle reef ?
It is the Austin chalk, Woodbine, Bossier and Haynesville. Haynesville Formation is 15,000’to 20,000’. I thought it was the Eagleford, but they said it was the East Texas Basin. One Lease is located north of Hwy 7, west of I-45 between Robbins and Marque (several Abstracts near Buck Creek). The other tract is in the McKinnsey and Williams A-627, which is north of Hwy 7, West of I-45 and East of Hwy 39. Hopefully, there will be future drilling in both Leon and Robertson Counties.
Along hwy 7 I think is a good area. Several wells there in the 90’s. Pinnacle reefs are in the Cotton Valley Limestone I think. Extremely prolific.
Abstract
In 1993, Marathon Oil Corp. opened the Jurassic pinnacle reef play with their discovery of the #1 Poth well in Leon County, Texas. The well flow tested 40.6 million cubic feet of gas per day unstimulated from an open hole completion in a pinnacle reef. That well and its neighbor, the #2 Poth S.T. drilled 960 feet away into the same reef, have accumulated 43 billion cubic feet of gas and 61 billion cubic feet of gas, respectively. These wells remain two of the most prolific wells in the pinnacle reef trend and were considered “the crown jewels” of the trend within Marathon Oil. Since then, more than 50 Cotton Valley reef wells along an 80 mile linear trend have produced more than 0.5 trillion cubic feet of gas. 3D seismic and the unique seismic signature of the pinnacle reefs made it possible to identify pinnacles as small as 5 acres in area. The pinnacles were estimated to be 300 feet to 600 feet tall from the drilling results in the late 1990s. However, ongoing drilling by companies (such as Red Willow Production Co. and Encana) found two older reef cycles buried within the carbonate shelf totaling up to 1500 feet thick and composed of three 500-foot cycles. 90% of the pinnacle reef drilling was done when it was believed that only one pinnacle reef cycle existed. The sparsely-drilled middle reef cycle should contain significantly more gas than the upper cycle, as the reefs widen at their base. In general, no water has been produced from the upper two pinnacle reef cycles, but there are indications the 3rd oldest cycle could contain high water saturation. Two of the largest pinnacle reef wells discovered in the Jurassic pinnacle reef trend were drilled by Encana in 2010 and 2012: the #1 Embra well (18.7 billion cubic feet of gas) currently producing 6500 million cubic feet of gas per day, and the #1 James McDonald well (26.7 billion cubic feet of gas) currently producing 30 million cubic feet of gas per day.
AAPG Datapages/Search and Discovery Article #90219 © 2015 GCAGS, Houston, Texas, September 20-22, 2015
Search and Discovery
Featured Articles
1 Like
The pinnacle reef wells usually have high amounts of NGLs entrained in the gas and N2, CO2 and H2S. I have also seen 1,000 BPD oil wells with associated sour gas in the area. Hard to believe in this commodity environment that these deep well and the associated cost to remove the impurities could make economic sense. It will be interesting to watch
This topic was automatically closed after 90 days. New replies are no longer allowed.