Never mind … I got it … found the RRC website & the legend, Thanks.
Casey, if you haven’t seen it Clint Lyles posted the permit RRC just approved for the #2 Boeker well. Since Geosouthern moved the rig a couple of weeks ago and started fracking I’m assuming they have drilled the first Boeker and Union Hill wells but decided to drill the two wells called Burns Creek from the pad near the intersection of 390 and 1948 before they come back and drill the next two wells in the Union Hill and Boeker units.
Since GS isn’t a public company they don’t need to brag about their results and always seem slow about filing completion reports. It would be nice if folks up there could share any rumors they’ve heard otherwise we probably won’t know anything until they start filing sales tax reports with the Comptroller’s office, and it looks like the pipeline still isn’t finished even though AMP started building it before the first two wells were drilled.
Dusty,
Do you know if they moved the rigs yet to the pad off of boundary school road.
WP
Haven’t been by there recently but think Geosouthern is still just has one rig in WC and has been using it on the other side of 290. Two-three weeks ago finished two just north of Burton and moved to pad near the intersection of 390 and 1948 where they are drilling two called Burns Creek. They have permit to drill two more wells from the same pad north of Burton where they are now fracking, so where that rig goes next probably depends where they have shortest lease terms.
Wow, they are drilling non stop. I saw when they requested a permit but didn’t see they got approval. You have to hope with the amount of drilling they are doing they are having success. I’ve called Geosouthern a few times to inquire but haven’t been giving a lot of information.
Any update on the Korthauer Unit, Old mill creek rd is a busy bee these days.
The “well record only” completion reports Geosouthern filed last September is the only thing that’s shown up on the Korthauer or those other wells (Prenzler and Malkey) drilled from that same pad off Old Mill Creek Road. No production has been reported to RRC or CONG so like those completion report said it looks like they are “shut-in producers”.
GS has apparently dedicated a lot of their production up there to the new pipeline system AMP is building, and all the rain must have really slowed it down. It’s hard to think GS would wait for that whole project to be finished before turning those wells on. They’ve moved ahead on producing some of their other recent wells, like the three Wickels, but since the Korthauer and the other two drilled from that same pad are right at the new gas plant AMP is building I guess it’s possible.
True talk on the rain delay, it’ll be interesting to see what happens in the next few months with that unit. I also agree that it’s doesnt seem that they would let it sit shut in for long, with leases expiring before long. But I guess that’s where the shut in clause comes in. Time will tell! Thanks for the info.
Sorry for the “novice” question, Dusty1. If you (or anyone else) wouldn’t mind sharing what a “shut-in producer” is, I would be so appreciative.
I try to follow the discussion thread, LOL, but much of it sounds greek. Seems like I should try to find a “royalty 101” class!
“Shut in producer” meaning a well that’s been drilled, with potential for extraction, but has been left due to other reasons: other job projects, gas market, safety or equipment reasons, etc. It is labeled as a producer meaning that the product is there, and has produced results, but maybe their resources are focused on another portion of job scope at this time. Highly unlikely that it will remain shut in with all the money being invested by GS in the area, but shut in royalties/production royalties should be paid soon based on the production date of that unit. (120 days after production date) Which was around end of November, beginning of December. This is my opinion, I do not work for GS. But anyone in that unit should be expecting news by end of March. Please correct me if I’m wrong on this.
I’d say you explained the term well. But on shut-in royalty payments I’m guessing lots of those leases were signed with the old standard lease wording in place ($1.00 per acre per year). Even if some folks negotiated that up to $100 or $500/acre and put a limit on how long shut-in royalties can be paid it still gives the operator a lot of flexibility.
As a private company Geosouthern also isn’t under pressure to report well results or impress stock analysts with their quarterly revenues.
Good point, I forgot they were privately owned.
Thanks guys! Appreciate the reply.
Looks like the korthauer Unit is now producing, however they haven’t released any specifics on the production results yet. Information was from Geosouthern.
Hi. I have a question about surface rights vs mineral rights.
I am looking at buying a 2 acre lot that is part of that is part of 16 acres that have been subdivided for the purpose of building houses. The owner of the 16 acre parcel has leased the mineral rights to GeoSouthern. Basically I am buying the surface rights and GeoSouthern will have the mineral rights. I am trying to assess what I am risking in doing this. I would hate to move in there and then have GeoSouthern decide that they need to put a pipeline through it or sink a well on the property. The property is near the corner of Helm Rd and Maass Rd (north of 290)
An addendum to the lease agreement includes a “Land Use” clause that seems to limit what GS can and can’t do on the property. But, being new to this subject, I’m not sure how much protection this offers:
LAND USE: (REFERENCE HEREIN TO LESSOR ALSO REFERS TO SURFACE OWNER) 19. There shall not be any surface operations by Lessee on the leased premises, nor shall Lessee install any installation of any nature whatsoever on the leased premises, without first obtaining a Surface Use Agreement from Lessor. This lease is being granted for the sole purpose of permitting Lessee to unitize the leased premises with other leases or properties which shall bear all the burden of surface development. Lessor understands and gives consent that, due to directional or horizontal drilling originating from surface entry on a parcel not owned by Lessor, the wellbore may pass through or terminate below the surface of the leased premises, Surface evaluation, surveying and other non~disturbing surface activities are permitted and shall not be limited to the written consent of the Lessor. However, Lessee shall notify Lessor in advance of its intent to have contractors, employees or representatives of any kind enter upon the subject lands for allowed activities. Lessor reserves all surface rights and uses to the subject lands including, but not limited to, the rights to assign, grant or convey easements or rights—of—way to any third patty provided such assignment or third party operation shall not interfere with Lessee‘s subsurface use of the subject lands.
My question - to myself - is do I follow through on the purchase? My questions to you all are: what risks am I facing? How likely is it I wind up in some kind of dispute with GS? I would love to hear from someone familiar with the area and the topic. Obviously I’m not going to take anything said here as legal advice…more as friendly advice from folks who know more than I do.
Thanks.
-mp
Definitely can’t give you legal advice. The lease wording you quoted sounds solid provided the the person you are buying from owns the full mineral interest in the whole tract your lot comes out of and the seller, either in the deed or by separate recorded document, gives you a waiver of surface use as to the acreage you buy. You want to have that in case more leases are signed after you buy, and so you rather then the seller would be the one who would have to approve any future surface use under the current lease. That doesn’t assure something wouldn’t happen nearby that might change your view, cause noise etc.
I had the same issue when I bought my 3 acres. I had a lawyer look over it and he felt pretty certain that the oil company would not use my surface to access a well. Most oil companies try not to put wells too close to homes. I have had the oil company come on my property to do some testing, but I was compensated for it.
Dusty
We were hoping to get over to Washington county last weekend, but do you know if geosputhern has moved their rig to the pad off of boundary school road ?
The last time I drove through, about 2 weeks ago, it was still off of 290 on Harmon School Rd. Don’t know if it moved yet. The Boundary pad is ready and waiting.
Wes, I think Geosouthern only has one rig working in Washington County. Two or three weeks ago it moved in and started drilling on a pad just off FM 1697 close to Burton. They have two wells permitted there and I expect will drill both before they move the rig. I don’t know any other pads they have ready so unless there are second wells to be add from pads where first ones have already been drilled Boundary School Road may be next up.
The rig on Harmon School is drilling three wells for Chesapeake/Wildhorse.