Does anybody still read this? If so, thought I’d mention that I just got an offer to purchase my minerals from the Southwest Petroleum Company out of Dallas. Note that this is for an outright purchase rather than a lease. After some research, this company seems legit but certainly not for me. Plus IMO unless you need money to buy shoes for the baby the terms and payment are not very good.
But moving right along, is anyone in our area of interest getting lease renewals? I sure haven’t heard of anything. Looks like we’re back to square one.
Even thought it might as well be on Mars as far as we’re concerned, that Lonestar well(s) just north of the former I10 rest stop west of Flatonia looks to have been at least partially successful. As of Friday there was a big tank battery on site along with a constant sooty flare indicating wet gas. So good for them.
4 posts were split to a new topic: Dimmit county oil drilling activity
Sure, we’re still reading, but things have been a little slow, probably corresponding to the sustained drop in oil prices.
I had a 3-year deal just expire, but I’ll bet it will be a while before anyone will contact me about leasing it again.
Do you get the monthly Fayette County Lease Alert from Courthouse Direct? I noticed that there are still some new leases being filed in areas up 609 north of Flatonia toward La Grange, so things are not completely dead. I would imagine (but do NOT know) that the bonuses are a bit on the low side now.
This is from Lonestar’s Q3 report - which I believe are the Five Mile Creek well’s your are referencing:
In October, Lonestar began flowback operations on 2 gross / 2.0 net wells on its Marquis property, which was acquired in June 2017, known as the FMC EB #A1H and FMC EB #B2H. These wells are the first wells Lonestar has drilled on its Marquis property and were drilled to average total measured depths of 19,563’. Lonestar fracture-stimulated these wells with an average proppant concentration of approximately 1,470 pounds per foot and across average perforated intervals of 9,068 lateral feet, using diverters. Test rates have averaged 1,008 Bbls/d oil (85%), 90 Bbls/d of NGLs (8%), and 487 Mcf/d (7%), or 1,179 BOE/d (three-stream) on a 26/64" choke. Lonestar has a 100% WI / 73% NRI in these wells.
Thanks, this is good information and these days, information is mighty scarce. Just for grins, what is the well head pressure and has that stayed relatively stable?
Yes, still here, crickets are still chirping.
I haven’t heard much at all. KEW/Santa Rosa and a few other companies tried marketing their acreage with no success. I don’t see a situation where they extend the leases over the next 6 months. No one has wanted to risk drilling a well this far East due to the thinning of the Eagleford and unknown potential for the Chalk. Oil prices aren’t helping encourage development of riskier areas, either. So, we wait!
Mid December we received and responded to an offer from Southwest Petroleum and sold the mineral rights we had in Fayette County. Bum deal. We received no money on the Collection Item they sent us.
Did they record your deed?
Don’t know. And don’t know how to query the courthouse… Can you tell me how?
So, no. The deed has not been recorded. Is there a way to challenge that?
Send them a letter by certified mail and request that the unrecorded, original deed be returned to you immediately.
I have no more information. I’d like to see production data. They combined FMC units B&E and drilled that looong lateral. We are hoping they do the same in the other units hpb, particularly K & N.
So, it just took time; received the check today and all is well. Would have helped to have known how long to wait.
bbr, glad everything worked out for you. In future leases you might want to specify up front that you will email a copy of your signed and notarized lease (and lease memorandum if they propose using one) but you won’t give them the signed originals until you receive a cashier’s check for the bonus amount.
Since only originals can be recorded that avoids the risk of having the mineral interest tied up and the money never showing up, which has definitely happened.
If the folks doing the leasing won’t agree to that approach you might offer to meet with them in person to exchange your signed originals for their check. It that still isn’t agreeable I’d question whether they are people you want to do business with.
Greetings. first of all, I hope that everyone is staying well and is staying the (heck) away from everyone else. Six feet, at least.
Having said that, I recently heard some news about our old friends at Sanchez Energy. I won’t quote it or cite the source but paraphrasing…
Sanchez’ lenders have agreed to take a majority stake in the company after the company couldn’t repay $200 million in bankruptcy loans. So these are loans that were made AFTER they had already filed for bankruptcy. And OBTW they also won’t be able to pay back any of their $2.3 BILLION in distressed notes.
With all of the other virus-y news going on I just don’t have the heart to pile on, but let’s just say that this has not been a surprise to me ever since they moved south. Stay well.
This article was sent to me yesterday. Even though I don’t watch/look at/listen to CNN as a rule, this is a very interesting problem.
I’m told that this is not fake news either. I realize that creditors want to be paid and therefore operators have to produce product, but if it’s not worth anything why produce? And even so where would you put it? The good thing is that most leases have some kind of 120 day window for temporarily shutting in production.
This is why I find other threads on this site concerning new leases and future drilling so interesting. I realize that oil jumped today… to about $27/bbl. Whoop de do!
Simply put, it is a supply and demand issue. With so many people, globally, working from home, no one is traveling, driving, spending money. The demand for oil/gas has shrunk significantly, thus, we have a surplus and now the midstream companies are going to be put into a situation where they have to ask producers to shut their production in.
A few things to note… You can’t shut in an oil well and make shut-in payments, that is only for gas wells. So unless you intermittently flow the oil well every 60-90 days (typical cessation of production clause), you’re stuck with paying royalties unless you want your lease to terminate.
In the past two months, the UK company INEOS, who bought quite a few acres from Crawford Hughes, has received three permits to drill the Austin Chalk for oil in Fayette County.
Two wells were permitted in April, and the third was just permitted.
Here’s a little background:
Ineos plans to begin fracking in Texas
Those first two wells are just NW of La Grange, while the third is just SW of La Grange down 609.
Given the cost to drill and frac a well, and the current price of oil, I can’t really say whether they’ll be in a hurry to do any of these. But, it is their money.
Since they bought all that acreage last year, they probably had to pay more for it than had it been purchased today. But, I have absolute ZERO information on that.
In any case, let’s all wish them the best of luck.