Hey Ralph,
Thanks for the kind words.
Upton County Block 40/Section 41/T 5S/Abstract 472. Several vertical wells in the section and a horizontal well that permit was approved on July 25, 2014 will be reaching into Section 41. Ralph you're surrounded by oil wells...........
Link to Completion Report on vertical well # 38527:
GIS Map of Upton County A-472/Section 41/T5S/ Block 40:
Thank you Clint.
Does anyone know if there is any new well activity around Pembrook Unit Tr 135, Section 1, Indianola Survey. I would appreciate feedback from anyone familiar with this area. Thank you.
Hi, I am new to this forum and greatly appreciate the information I have seen so far.
I am curious if anyone has heard of Pacer Energy who evidently sold their interests to Parsley Energy?
And is there any recourse for royalty owners when an oil company doesn't do their due diligence in finding heirs (as in accessing records at the courthouse)? Is anyone having difficulty getting with Parsley Energy?
If records are so old that they are not yet digitized at the county, is it best to hire an abstract company to find the information?
I also own a small % interest in Upton Co. Just got tracked down by a ‘land man’ who asked if I would sell my minerals. That was a first.
I have 160 Royalty Acres in section 10 block 3 1/2. I am getting offers to sell @ $192k. Does anyone know anything about this area and what people are getting?
I got a message from Pioneer wanting to discuss a lease amendment - didn't say which property. She mentioned horizontal development. Can someone explain the implications of this before I return her call?
Mr. Siclen, I would be looking at whether it were an opportunity to renegotiate the lease terms as to royalty, or at the very least a substantial payment for amending the lease. I would expect them to counter with they will just walk away to which I would reply ok, just call me when you're ready. You see, a lease amendment doesn't necessarily MEAN they are going to drill any wells in the next 10 years.
Getting deeper or horizontal drilling rights increases the value of "The operators leased acreage" while not adding a single dollar to your pocket. The property becomes more valuable in a sale or even just as collateral. Paperwork is an excellent way to make money in O&G. There are many more ways to make money in O&G than simply producing and selling product.
At the very least [ if you don't ask for a single dollar more ] you should be asking about a "drilling commitment" in exchange for the amendment with liquidated damages if they do not drill within 1-2-3 years [ you will have to feel them out ]. If they intend to drill? It shouldn't cost them anything. I don't give companies something of potentially great value for nothing and I don't accept their verbal assurances.
If this sounds too far beyond your knowledge, you might hire a professional to negotiate it for you.
You may need to consider whether the lease is HBP with multiple wells and so it will not expire even if there is no lease amendment. It may be older lease which doe snot have a pooling provision and that is what Pioneer wants. In exchange, you can ask for increased royalty rate or for cost-free royalties. Also, you do not have to agree to a lease amendment allowing any and all pooling. Instead you can simply consent to a single pooling for a particular well with limited acreage and terms in DPU. Be careful that DPU does not grant the operator the ability to change any and all terms without your (lessee's) consent. Limit your consent to specified acreage and depths/formation. Consulting an oil and gas attorney is a good idea. But even that depends on your net mineral acreage and interest in the well. If you only own 1 acre then the considerations are different than owning 100 acres.
Thanks for the responses - a lot to consider! Please explain HBP and DPU (or atleast what they are an acronym for).
HBP is 'held by production. When you sign a lease, it will have a primary term (most commonly 3 years) which is the time that the lessee can plan or otherwise be inactive. At the end of the primary term, the lease will continue if there is a producing well or the lessee is drilling a well, depending on the exact lease terms. Then the lease continues as long as there is production. There are many 1950's leases which are still HBP. DPU is a Declaration of Pooled Unit or Declaration of Pooled Unit. It is the document which declares that separate leases and tracts of acres are combined for drilling a horizontal well (in your case). A horizontal well needs a long strip of acres. Suppose there are 4 tracts of 40 acres each and it takes 160 acres to drill. Then the oil company needs to set out that it has authority to pool the tracts and how the oil will be allocated to the tracts and owners. Most commonly, allocated on a per acre basis. That is the DPU. You want to make sure that your minerals/acres are not left out and isolated so they can never be drilled and you want the best financial deal possible. Finally, if your minerals are already pooled, then the operator may want to drill across one or more pooled units. In that case, the document will be a PSA, Production Sharing Agreement, which will describe the terms and conditions of drilling the horizontal well across the units and sharing the production between the units, most commonly by length of lateral in each unit.
Does anyone have any recommendations of a solid company to sell my acreage to? 205 acres. Thanks in advance!
Does anyone have any information on Callon Petroleum? Just discovered that they’re operating on land we have mineral interest in and that we owe taxes per the Upton County revenue site but we’ve never heard of them or from them. I emailed them last week but didn’t receive any response. Called today and left a message. Just curious what anyone else’s interactions with them have been like.
I received a "working interest owner" letter from Pioneer wanting me to sign an approval to "temporarily abandon with the intent to plug and abandon" a single well. It included an estimated cost but no indication whose cost. Anyone else with this experience?
If you are a working interest owner then you will be responsible for your proportionate share of plugging costs. A leased mineral owner or royalty owner is not responsible for plugging or other well operating expenses. You can become a working interest if your minerals are not leased and after the well has paid out. How did you acquire this interest? Do your checks show your payment is royalties or working interest. Call Pioneer and ask questions to see what their records show.
Callon is very active in Ward County and legitimate.
Dani........
I agree with Wade. Also, Callon is and has been very active in Upton County........ Since February 2010 they have had 104 permits approved by the Texas RR Commission just for Upton County.
Clint Liles
PBOG Blast
New pipeline to Gulf Coast through Winkler, Crane, and Upton Counties.
For anyone that might be able to help--Is there a resource used in Texas to identify current leaseholders in any given area? In Oklahoma we use a service called Pangea Data and it gives info on leaseholders, well data, production, etc. We hold a royalty interest for some minerals in Upton County, but I need to find out who owns the lease so that I can properly calculate our interest decimal. Any help would be appreciated!
