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We have not received this offer from this company, however, we are working with Penn virginia right now on a block of 700 continuous acres, exact area you are talking about....mostly in Lavaca county but some in Fayette right on the county line on right side of 1295. $1000/$500 3/2 25%. Little delay since this started working right before Harvey, and they are in Houston...but they are still working on it
Has Tri-C actually drilled anywhere around here ? what type of well are they considering to drill ?
AW...any updates on the Tri-C resources offer?
Nothing in writing. Lots of phone tag. I believe Steinhauser has a stack of Tri-C leases he is working on, but I don't know where they are located. There also may be another company showing interest, but I don't have name. I'm not much help and would be interested in others Tri-C offer. They are telling us they are in-concrete on their $600 3/2 20%. We've kicked the dirt with them but they don't want to budge. Hoping Penn-V moves over into Fayette to push up the rates.
Penn V has their hands full with the recent asset acquisition. There is talk of them adding a rig but its a budget thing also after coming out of bankruptcy
Penn will not be adding a third rig this year. they are going to have some extra expense in the next 18 months since they will be adding 8 new units during this time frame so they can HBP all of their current leases. From now on they will only be spending their net revenues for operating expenses...no more borrowing.
Penn v will not be leasing in the area Tri-C is trying to acquire...which is mainly the old expired Sanchez leases in fayette county from Praha to engle, and south of I-10. This will probably be the best offer you can get...about the same as the others are paying...Ross, Geo and what Jeter paid. Also someone called HBR ? or something like that is leasing same area. Mike Steinhauser is probably not liking the language of the lease..because the money is ok. Penn V did lease back the acreage to do the Big Five unit that Devon had permitted but never did...and Penn paid between $550-$650/ acre...and all of them accepted......
My lease option is up for renewal after 3 years in March. Any word on if Penn Virginia is renewing or dropping the 4th year for other leases? It was a 5 year - 3 year with option for 2 more.
Where are you located ?
Actually, I found your tract. You will be getting the 2 year option...no doubt....the $500 is cheaper than the $650 they are paying now.
Penn will drill the Big Five unit Devon already permitted...however, the permit will change. Penn just got finished leasing the land that had expired there. there will be 1 unit made to the east of the Big Five that will border the Olsvosky unit...You, Larry will be in that one. The units to the north of Olsvosky, and the units to the east of Prost unit "I" will be in 2019, since Penn has 1200 acres of 2year options expire in march 2020 in that area (the ones they are paying the options in March 2018). Penn just leased last month, another 800 acres in that area that had expired in that area as well, since it is close to their pressure boundary, and Area 2 looks to be better than Area 1 at this point.
Only issues here will be the tracts that leased to delago...about 6 in the Mary Lewis and fox surveys. i heard if Delago is unreasonable, that Penn will just not include those tracts in any units it will make. I know Devon did that a couple of years ago in 2 units close to Hwy 95.
Thanks for the information. They were including me in a unit 3 years ago..then the oil price tanked so I am hoping they move forward this time.