Myself and a number of my neighbors in SW Washington and NW Austin Co. signed up with Pallas in March. Based on everything we could see they were fair and above board; and to this date we have no reason to question that. Anybody have dealings with them that were less than favorable?
Pallas Energy is associated with EOG Resources, so your leases have probably been assigned to EOG by now. They permitted the vertical Tonkawa 1 well in March 2017 located in the north corner of Colorado County, and EOG later re-permitted it in their name as a horizontal well in Dec. 2017. While EOG's Tonkawa 1H well is permitted as a wildcat well, the permitted depth (15,000') suggests it is targeting the Austin Chalk, which would be consistent with EOG's recent success in the Austin Chalk trend, as well as their recent public comments to investors.
I've pasted a link below to the two drilling permits I mention. If you follow the link to the EOG permit you will find a link to the RRC's map feature which will locate the well for you.
EOG is one of the premier E&P companies out there, and one of the most technologically advanced explorers, so their jumping into this area / Austin Chalk play has excited folks in industry. I'm not sure of the status of the well, but it would be on trend with you and your neighbors in the two counties you describe. It is somewhat down dip (deeper) from where GeoSouthern and Wildhorse are having success around Burton, so it will be interesting to see what success they have.
Good luck!
G.C.
Agree with you on the significance of EOG's involvement.
When I was by the Tonkawa on the Feb 3rd H&P's Rig 632 was set up to drill the horizontal leg. It may be months before anything comes out but the results of that test combined with the multi-well sites Geosouthern and Wildhorse already have extending northeast and northwest into Washington and Fayette County will definitely be interesting.
It certainly has gotten a lot more interesting around Western Washington Co. Those wells coming from Burton make things a little more promising for sure. There is a monster pad and rig just west of Greenvine. One of the landowners indicated they are going to drill 4 wells from that one spot. Then I just noticed an entrance off of FM 2502 in the Whitner Ranch area. Then yesterday I get a letter from a group representing Seitel wanting to do a 3 D seismic mapping on a 60 square mile area roughly including land north of Bleiblerville and south of Greenvine. Any negative info on Seitel and or 3 D seismic in general. On their website they have it marked as “Brenham West acquisition “.
Michael
Geosouthern is the operator on the new pads you mentioned. They have 9 wells permitted in that area south of 290, they recently completed one off Old Mill Creek Road and are now drilling the first of three Wickel wells from that pad west of 2502 near Greenvine.
On the seismic, Seitel is well established company. In 2014-15 they did a big shoot covering the area where Geosouthern, Wildhorse and Black Brush are now actively drilling on the west end of the county. I didn't have any problems with them on that project other than taking longer than they'd originally planned to get it completed.
It's your choice if you want your property to be included in that next project they are proposing but if you decide to I'd suggest you get some things pinned down before you sign a permit, like whether their work will be limited to Vibroseis (thumper trucks) or they'll also being doing shot holes. In addition to pushing for the best price per acre possible I'd want to get an addendum added to their standard permit covering things like the agreed fee being paid to you before they enter your land, the time being limited to 6 months from when you sign, and no work being done during wet weather that could cause ruts.
Good luck