Mesquite Energy was the winning bidder for Gavilan assets, and plan confirmation is set for 11/30/20.
MD America filed Ch. 11 in Houston. It is pre-packaged and Nov. 11, 2020 is the bar date for claims.
On Sable, JP Morgan (the major creditor) was the only bidder at the auction, so the auction was cancelled.
The Oasis reorganization plan was approved by the court.
The Chesapeake Plan Confirmation drew numerous objections, and the hearing went four days last week. Have not seen if adjourned or if there is a ruling yet.
The Gavilan Plan was approved 11/30/20. They are selling to Mesquite Energy.
Gulfport Energy filed a pre-packaged Ch. 11, and has already filed its Plan and Disclosure Statement.
The Oasis plan was approved Nov. 19 and the bankruptcy is starting to wind down.
The hearing on Sable’s plan to sell its assets to JP Morgan is set for approval on 1/29/21.
In 2019 we started receiving royalty payment checks from Blue Water Resources on the well production that was being paid before by Chesapeake Pittsburg Co. Section 28). But we are getting Chesapeake bankruptcy documents. I check the links and did not see us listed as a creditor. I called and emailed Blue Water but they will not reply. Will the Chesapeake Chapter 11 filling change our royalty payments from Blue Water?
What is the complete description? There are many section 28s. I need to check who still owns the well. Chesapeake sold many of their properties.
The wells descriptions for these wells include Pittsburg County, OK Section 28-7N 13E, Holt 1-28, 2-28, 3-28, 4-28, 5-28H CBM, 6-28H CBM, Junior 1-28H CBM, Charlie 1-28H CBM. Thanks for your help.
Look for the 1073 forms in the OCC wellrecords files. https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx. Type in 2807N13E in the location box. You can see when your wells were sold.
Probably just sending you a courtesy letter since you used to be with Chesapeake. They may be using an old list for the mailouts. The orders were just given on the bankruptcy. If Blue Water continues to pay you, then you are fine.
Martha, Yes that is it. Thanks for your help it is interesting how the owner royalty departments seem to ignore requests for this basic information. Your help is invaluable to us. I have another bankruptcy issue in the next post.
Canaan Bankruptcy
Sanguine Gas Exploration has received conditional court approval for drilling in Pittsburg Co, OK in Sections 21 & 28, 07N 13E on Dec 23, 2020.
We are under a lease contract with Canaan Recourses X, LLC for royalty payments on any hydrocarbon produced or exploring of such production in Section 28 in Oklahoma through July 2021.
But
Upon trying to contact Canaan, we have found that they have entered Chapter 11 voluntary bankruptcy and have ceased communications. Phones are disconnected and their web site is no longer active.
So we wanted to know if these leases are typically transferred to Sanguine Gas without notifying us. If not do we need to contact them? They have not returned any calls or email requests to do so with us.
Marty: The Sanguine pooling hearing has been continued to June, so there isn’t any drilling going on at this time. If your lease expires prior to the beginning of drilling, you will be able to lease your minerals again. There have been no Assignments of leases from Canaan to Sanguine filed of record. FYI, the operators of wells are generally the party that pays royalty owners, not always, but most of the time. If drilling operations begin prior to the expiration of your lease, the lease remains in effect until such time as production ceases. There is no need to contact either Sanguine or Canaan at this time. Just make sure your contact information at the County Clerk’s office is accurate. Good Luck
Haynes & Boone has a nice power point on Oil & Gas Bankruptcies in 2020.
Not advertising them, just found the information useful. https://www.haynesboone.com/-/media/Files/Energy_Bankruptcy_Reports/Oil_Patch_Bankruptcy_Monitor
Todd, Attached is a link of what I thought was Sanguine CCO approval to proceed. It is not signed by the Law Judge, so is that why it was continued until June? Thanks for your helpful reply.
(Dropbox - Sanguine Gas Case #716072.pdf - Simplify your life)
Marty: That is a spacing Order. They have a pooling application pending that has been continued until June.
| Application | Pooling | Filed : 08/24/2020 | Hearing : 06/01/2021 | View PDF |
|---|---|---|---|---|
| CD-202001494T | Applicant: Sanguine Gas Exploration, LLC | |||
| Attorney: Benjamin J. Brown (918) 779-6047 | ||||
| Notes: **NOTICE OF CONTINUANCE FILED 12-02-20. HRG. DATE: 06-01-21. | ||||
| Lands Covered: | All | 28-7N-13E-IM | Pittsburg |
Quite a few hearings have been delayed due to COVID drop in demand and drop in prices, OCC building shut down for a good while, so hearings are done virtually, companies are ramping up (or not) during stressful economic times.