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Dimmit County, TX - Oil & Gas Discussion


Dimmit County, TX - Oil & Gas Discussion

Oil & gas discussion group for those interested in Dimmit County, TX. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Website: http://www.eaglefordshale.com/counties/dewitt-county-tx/
Members: 101
Latest Activity: Nov 22, 2016

Discussion Forum

Completion Reports

Started by Clint Liles Sep 25, 2016. 0 Replies

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Comment by G C Gill on November 22, 2016 at 1:22pm

Mr. Archer - TX has a statute that requires them to pay you within 120 days, and says you don't have to sign a division order that says any more than stipulated in the statute.  You can find it here - scroll down to Sec. 91.402. TIME FOR PAYMENT OF PROCEEDS.:


Also, the TX RRC has a FAQ page, which includes information on Division Orders here (scroll down to Division Orders):


I think you will find that this article offers a thorough explanation:


I hope this helps.

Comment by r w kennedy on November 21, 2016 at 4:58pm

Mr. Archer, I never sign anything I don't have to. There is probably a perfectly innocent reason why your interest calculation is higher, the pool may have shrunk by a few acres.

I certainly wouldn't sign and return a division order that attempted to modify a lease on a temporary basis because you can still agree to anything. A new agreement every day.

Best not to agree to anything you don't believe is correct.

The division order may even say it can not change a lease and it can't. I think of it in the nature of a "new" stand alone side agreement that you could agree to which is effective until you rescind it.

Comment by William Douglas Archer on November 21, 2016 at 4:25pm

I received a division order that provides a royalty percent slightly higher than expected.  It is like $20 for every Million of production.

The lease I signed had a clause that stated no division order or transfer order was required with the following language "it shall not be necessary for Lessor to execute any division or transfer order in order to be entitled to payment of royalties under the Lease."

The Division Order says "The undersigned certifies the ownership of their decimal interest...The undersigned agrees to indemnify and reimburse {xxx oil co} any amount attributable to an interest to which undersigned is not entitled."

The lease terminates if they fail to pay royalty.

Should I sign the DO, recognizing that it is slightly different than what was represented to me, no way knowing with absolute certainty my ownership or rely on the no division order required language from the lease?

Comment by Dan Sheffer on November 19, 2016 at 5:10pm

oh yea ....the royalty is 20 per cent

Comment by Dan Sheffer on November 19, 2016 at 4:34pm

i did a lease with sanchez a couple months ago ...the deed i have reads an undivided one-fourth [1/4] of all our mineral and mineral royalty interest  in and to all that certin forty [40] acres of land, more of less, in survey no. 7, h&gn rr. co. , abstract no. 125 in dimmit county, texas  and so on it is just about 3 miles north of asherton texas and maybe less than a quater mile off hwy 83, to the east ....the lease is 500.00 an acer, for the 10 acers, for 3 years, with an option to renew, for 250.00 for 2 years.  whats the chances ill ever see any real money out of this. the area dose seem to be very active but not right in my exact area  ...anyone..thanks,... dan 

Comment by Clint Liles on November 19, 2016 at 9:55am

Good morning William,

I see no permit ever approved in the last 2 years for a Charles B #1 well.  I do see an approved permit for a Roger B 1H well(Chesapeake)


Clint Liles

Comment by William Douglas Archer on November 19, 2016 at 7:20am
I received a division order for a well called "Charles B #1"

I amtrying to confirm the royalty and thus pulled up the gis viewer and visually searched for the well. I do not see it in the abstract that applies.

Can someone more knowledgeable than me (that is virtually no filter whatsoever), show me what abstract/tracts are assigned to this well?

Thank you
Comment by G C Gill on November 15, 2016 at 7:56pm

Randall - Sanchez Energy is a publically traded E&P company active throughout the Eagle Ford, but especially on the western side of the play. Follow the link below to their investor relations page, and download their Jan. 2016 Analyst Day presentation - 90+ pages.  They show their acreage at that point as well as their thinking on the play.  As to their leasing activity, I haven't heard anything of their being actively leasing in the play in more than a year.  I'd say it's good news that they are interested.  Go back through this group - past postings - to see members thoughts on lease terms...

Good luck!


Comment by Randall Stiles on November 15, 2016 at 6:43pm
We received a call from Sanchez oil for our property located off 517 Loop in Carrizo? Has anyone heard anything about them? What type of leases are being offered? We had a pool lease with royalties for several years under CML but they plugged the well
Comment by William Douglas Archer on October 19, 2016 at 9:27pm
They appear to just be tieing up your property. You should be able to get 1/4 cost free royalty.

I would not do the option. That does nothing for you.

So now, do they want 12 months, 18 months or 36 months. Do they want all depths or just one formation? Where is there area of focus and how many wells have they drilled? Does their history show shallow chalk wells, but they want all depths.

My most recent deal was for Buda and Chalk only. It did not include Eagle Ford or any other formations.

In jan 2014 i leased for 18 months with a $650 bonus.

Most recently i was asked for a 30 day extension. I offerred 30, 60 or 90 day extension option at $50, $90 or $120 BUT if they failed to drill, their was a development penalty equal to the same.

Good luck.

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