A couple of days ago I received an offer from San Saba Royalty to buy my mineral interest in Leon co. for$72,284. I also received an offer for $10,000 from Permico Royalties. Usually my offer is in the $3000 range. Three days later I received shut in payment for the well these guys want to buy.
I am ( or was ) receiving a royalty from the UPR/T bar-x King Cobra well in the Christian Stucky survey that my lease was pooled with. My lease contains 99.2 acres in the RJ Calder Survey A199, 320 acres in the BW Lewin Survey A485, 80 acres in the PW McNeice Survey A590, 77.44 acres in the JC Evans Survey A263, 28.55 acres in the Thomas Carr Survey A207, 2.6 acres in the Hiram Ferrill Survey A284. In Leon co Tx.
Call me paranoid, but I’m suspicious that someone wants to pay several thousand more than my usual offer amount for a shut in well. Do they not know the well has been shut in ? Has a new well been drilled and they are trying to buy before I find out
Can someone please tell me what is going on?
@acurmudgeon your minerals are located in the Western part of Leon County not far from the Robertson County line…with the price of natural gas going up I would imagine someone like Aetheon, XTO, Encana Oil and Gas, Comstock Oil and Gas, EOG or Chesapeake may be going to drill wells into the Cotton Valley Lime and Bossier formations that are very productive in this area. Possibly someone has some scoup on what is in the future in this area.
This GIS map will show where your 6 areas of minerals are located.
Thanks Mr Liles,
I forgot to mention that my land is tied up as I didn’t know to get a Pugh clause when I signed the lease. Maybe the high dollar offer is pure speculation.
Think Clint nailed it. In January Aethon permitted a well called the Topsy about a mile east of the TXO unit you’re in. Nothing has shown up on RRC yet regarding its spudding or completion, but that nearly two mile long lateral is probably drawing attention from mineral speculators.
That’s been a proven gas area for 20+ years but that Aethon well may be the first long lateral that’s been drilled. Your well was called a directional drill but apparently had a very short horizontal leg. It has still managed to make over 4 BCF in 24 years. The well Aethon completed in 2019 called the Golf Lake, that is about 1/2 miles from your unit, in the same direction as their Topsy well, so far has made 1.3 BCF. If the productive formation continues through that whole area a long lateral well could be a major gas producer.
If Exxon/TXO isn’t motivated to follow up on that maybe a farmout deal with Aethon could get some more wells added to your unit.
Surprise Valley Resources is conducting a large-scale leasing campaign in Leon County. Speculation is that they are leasing for Ovintiv (formerly Encana). Lease memos were first recorded on 12/6/2021, and here are the totals so far:
952 leases
115 surveys
38,800 acres
They have recorded leases for acreage in four of the surveys included in your acreage:
RJ Calder A-199
BW Lewin A-485
PW McNeice A-590
H Ferrill A-284
I suspect this leasing campaign has sparked interest in your acreage.
Thanks to everyone responding to my post.I just learned my replies may not have gone through. At my age I don’t know if I’ll live to learn this high tech stuff.
I just received a shut in payment for the well on my lease. The property description of the shut in only lists the lands on my lease that were pooled with the UPR T Bar X King Cobra well. Could the well still be producing and my land be unpooled ? In other word can I be removed from the pool of a producing well ?
In case you haven’t seen it, the plat of the unit formed by UPR is attached below. On the lower right side it lists the five tracts included in the unit.
Just one opinion, not legal advice, but it looks like that unit was made up of only 496 acres that covered the full Stucky, Carr and Evans Surveys. If that’s right the Clader, Lewin and McNeice Survey acreage you indicated was also covered by the lease aren’t a part of the unit. If all of your acreage was in a single lease agreement, and it didn’t include a Pugh clause, I’m thinking the part you own that’s outside the unit would still be held by production for as long as the lease term is maintained through production from that original unit well your lease was pooled into, or through TXO making timely shut-in payments, to the extent those were allowed under your lease.
The specific wording of your lease could make a difference. Have a lawyer review it, or try sending TXO a registered letter, with your lease agreement attached, asking them to send you a “release” covering the acreage you own in those other three surveys.
