Geosouthern Activity- Washington County


#21

Good morning. I noticed from this post they are planning on drilling through my property. The owners in the plot information are outdated. I’m hoping you can help with a couple of questions. Since they are drilling through multiple plots, how does geosuthern determine what’s production comes for your property? Also, the projected drillling section is just through a small portion of the property. Is it common for geosoutern to end up drilling in multiple directions throughout the drilling process?


#22

Sorry, for Boeker unit


#23

Casey

If I’m understanding your questions right, the drilling permit for the well Geosouthern called the Boeker IH shows it will be drilled in a “pooled unit” that includes a total of 661 acres. Between the time a permit is issued and a unit is finalized operators sometimes change the size and makeup of the unit, so nothing is final until a well is completed and the unit boundaries are filed in the county deed records.

Unit plats typically don’t show a full breakdown of the current mineral ownership. Based on the plat filed with the permit application for the Boeker 1H, it looks like your tract is part of 29.39 acres called “Tract 7” that was listed in the name of Jerry Guelker, who previously owned that 29 acres and I’m guessing retained some of his mineral interest when he sold it.

If you own mineral interest that gets included in a pooled unit you will receive royalties from any well that is completed in the unit based on the number of net mineral acres you have in the unit versus the total size of the unit. If additional wells are later drilled in that unit you would receive royalty on your share of that production also, and it won’t matter how much, if any, of the well bores actually cross the land where your mineral interest is located. In some cases operators form other types of units, like allocation units, where the formula for dividing royalties is based on the number of feet of well bore crossing each tract, or other factors, but pooled units are strictly based on mineral interests within the unit.

If the first Boeker well is successful Geosouthern would probably have room to drill several more wells in that same 661 acre unit, but they wouldn’t be under any time pressure to do that since all the acreage in the unit would be held by the production from the first well. At the top of the plat that was filed for the Boeker 1H there is a circle that indicates at the time the plat was prepared GS may have been planning to drill at least three more wells from that same pad they’ve build. One is shown as the Boeker 2H that would be in that 661 acre unit, but the other two, called the Union Hill 1H and 2 H, would be completed in a separate unit that extends north from the Boeker unit. Since they are in a different unit from the Boeker you wouldn’t have any royalty interest in those Union Hill wells.


#24

Dusty,

Thank you so much for replying. Really helped me understand what’s going on. I appreciate you taking the time to help.

Casey


#25

Hi Dusty. Can you confirm that R. Byron Robinson is part of the Boeker “pool”? If so, how many acres? And what’s the status of Union Hill and Baker? I’m involved as 1/3 owner with my brothers and also trying to figure out where we stand in all of this. Leased through a Geosouthern. Thx


#26

The plat Geosouthern filed for the Boeker Unit shows Tract 58 in the name of R. Byron Robinson and says out of the 101.5 acres in that tract that 52.5 acres were included in the unit.

Like I told Casey earlier, it’s possible the size and lay out of that unit could change some before it is finalized. For some reason the permit is showing the total in the unit as 661.1 acres but the plat calls the total 653.8 acres.

The permits for the Boeker 1H and Union Hill 1H say they each were spudded and had surface casing installed last April. But it looks like Geosouthern used a small “spudder” rig to do that part and nothing else has happened since then. Just a guess, but I wouldn’t be surprised if sometime in the next month Geosouthern will finish the last of four wells they have been drilling from the pad on FM 2502, just south of 290, and that big rig moves over to drill the first Boeker and Union Hill wells.


#27

Want to share some information and see if anyone knows any details about the new pipeline being built in the Burton area. It crosses 290 near Burton Sausage, crosses Wildflower Road a little further north then continues across 390 and ends (or starts) at that big pad Geosouthern built off FM 2780 where they have permits to drill their Boeker and Union Hill wells.

Couple of things that surprised me where that it looks like the pipeline is being built up to that pad before drilling has started on those two GS wells, and they have three separate 10-12 inch lines laid out ready to go in the trench they dug past FM 2780. I don’t think lines are usually extended until a well has been finished at least to the point where they know it will be fracked and completed, and then it’s only one natural gas line, not three.

The new line is already on RRC’s map and the operator is shown as AMP Texas Pipelines. AMP appears to be part of a company formed last year called Aspen Midstream Partners. Their website says AMP is building gas gathering systems in Washington, Burleson and Lee County, and also plans to build a large gas processing plant but doesn’t give a location.

Several separate AMP gathering lines that are shown on RRC’s map seem to come together south of Burton, on the north side of Old Mill Creek Road. According to WC deed records AMP bought two adjoining tracts totaling about 180 acres a couple of months ago in that same area. It’s close to a pad where GS recently completed several wells and has more planned. If that 180 acres is where they build what they describe as a 200 MMCF/D cryogenic gas processing plant I’m thinking it would be a real encouraging step for Washington County and an indicator of the long term prospects for the Chalk play in that area.

Appreciate if anyone has information they can share on this.


#28

Geosouthern apparently finished drilling the last of the four wells they’ve been working on the last two months on the north side of FM 2502 (Greenvine Road) just east of 290.

Friday the rig was moved to the drill site they built just north of Burton, between 1697 and 2780, where GS has permits to drill what they called their Union Hill and Boeker wells. It looks like drilling should start next week, and like mentioned above, a pipeline is already being completed from that location.


#29

Dusty, Any new drilling permits or activities by Magnolia in Washington county?


#30

Thanks for the update Dusty. I noticed that pipeline. Seems to be good news for Washington county.


#31

No permits filed yet but Magnolia just surveyed a new pad on Harmon School just north of Nixon Lake Road.


#32

Dusty, thanks for the update. Can you guess when they might start drilling off of their pad on Boundary School Road?


#33

Wes, I’d guess that BS Road location will be next up after they finish drilling from that pad just north of Burton, which would mean they might be in your area in four to six weeks.

The plats Geosouthern filed for those two wells they are getting started on now each showed second wells (Union Hill 2H and Boeker 2H) are planned but GS hasn’t filed permit appplications for them yet. They could decide to permit and drill all four of those wells before the rig is moved again since simultaneously fracking all the wells that are programmed from the same pad at the same time seems to be the preferred approach. If they decided to go that route instead of drilling just the first two it could be 1st Qtr next year before they move south of 290 again.

Am I right a pipeline is being completed to that pad on Boundary School Road right now, in advance of the first well being drilled there?


#34

Thanks for the update. We drove by the pad a couple of months ago and didn’t see anything. We were told a while back that they would be putting in a pipeline at some point.