IKE drilling buying out SM leases

[LamesaLand]

Hello All -

My family has had cotton farmland in Dawson County for over 100 years now. It is still active. In the 70s or 80s is when the O&G leases started to come into play, best to my memory, for we also had mineral rights on cotton farm and other areas within the county. I am now an heir to all of this and, to be honest, new to the process (game) of landmen, vulture rights scalping, etc. I still retain all rights, yet there are many “back door deals” occurring that seem to screw landowners out of their rights via landmen. I am sick and tired of landmen claiming they got screwed somehow out of a deal that they sold us upon!

So now it gets interesting. I have a farmer that farms my land. My great grandfather used to farm the land, yet when he was unable to, he hired a nearby farmer. That man, who is well known in Dawson County as well as my great grandfather, has passed. So out of respect, dignity, and loyalty, he chose his son to continue farming operations for us, for he inherited the business.

So lots of history here, just wanted to share. Yet here’s the main question:

SM came in big and strong, yet got cold feet and left, willing to let their permits just expire.

Now, IKE Operations has stepped in, just permitted a section of mine. There is a ‘waiver’ letter of sorts from SM. This was just filed online Thursday, August 7, 2025. The permit is still in progress, with 4-mile laterals on plat, going straight through my section, and I have not heard a word of this yet! I discovered this on the GIS viewer!

So, real questions here are:

You have a 3-year lease with ‘sleazeball A’. They claim they got screwed somehow. Nothing will happen until January 2026 when the lease expires, somewhat. Yet I discover a new permit under a new operator before the lease expires. This was filed 4 days ago. Ok, cool—I want drilling activity, yet why have I not been informed? If they start drilling before lease expiration (or extension), am I stuck with the lease option (from 3 years ago—dirt cheap), or do I have legal backlash protection?

Lots of questions here.

So all of those of you that know this industry well in the area, your question is going to be: “What’s the land details?”

Section 13, East 1/2, Township 4 North I have surface rights and 160 NMA on this parcel.

I also have 80 NMA on other parcels very close to this that SM permitted, yet chickened out on drilling.

God Bless!

[DFish76]

So I have an offer to buy my small interest in Dawson County. It was put into “receivership” and I have no clue where to start with trying to claim my royalties. Currently, there are 4 PRODUCING, new horizontal wells on the property with a 5th being drilled. What steps should I take to see how much money is in the receivership “trust” and how to claim or access it, to see how much these new wells have produced to date, and to decide if the value is there to maintain ownership of these interests?

Any guidance on this will be very appreciated.

[M_Barnes]

Do you mean actual receivership or do you mean that the operator is holding the funds due to a title issue (suspense) or do you mean that funds have been escheated to the state due to not being able to clear up title in four years? Each one of those situations has their own solution. Do you know how many net acres you have? Do you have to clean up a probate? Those are the starting questions that need answers.

You can look up the wells nearby to get a feel for how good the area is. If you want to post the block, abstract name and number and section, we can help you navigate the the Texas Railroad Commission GIS map.

You are getting offers because of the horizontal wells that are producing and the new one being drilled.

[DFish76]

I was told that it was in receivership. I know that my aunt died in 2006 and had no children. Nothing was done so now it has passed down and I think at this point I only have about half of a mineral acre but can buy out some of my family if it’s worth it. I have no clue where to start and no clue if it’s worth messing with. I know that the wells are producing and that there is money in an account which obviously is part of the “sale” if that is what I do. I’d rather roll the dice if it’s worth it to keep.

[DFish76]

This is what the offer says…

The North Half (N/2) of Section 39, Block 35, Township 4 North, T&P Railroad Company Survey, Dawson County, Texas

[M_Barnes]

The reason that you are getting an offer is that there are four new horizontal permits into that area. It is definitely worth messing with if you are willing to do some legwork. If you aunt had a will, then one direction for action; if no will then an affidavit of heirship and the other direction. You may have to pay back taxes, to get out of “receivership”, if they have not been paid, but the new wells will be important. If the revenue from the other old wells is sitting at the state, you need to know about that. www.missingmoney.com (under her name). If the revenue is sitting in suspense with the operator, then you start there with the Division Order analyst and ask what you (and any other heirs) need to do to get into pay. There may be funds both places. The buyers want your acreage and any money that is being held. Do you want the held funds and the future funds? If your family works together, then that can benefit you all.

Diamondback has the Darla “39” wells 1 & 2 still active waiting on these new wells to be drilled.

[DFish76]

She had no children and as far as I know, no will. I am at a loss and don’t even know where to start. Is it possible on the missing my money site that it could be under a different state? Possibly where the oil company is out of, for example Oklahoma? Can I call the court that the petition was filed in to find information? Am I able to find out how much money is in accounts before making a decision to sell or keep? I don’t want to miss out on an opportunity but also don’t want to make a bad decision.

[M_Barnes]

Contact the Division Order Analyst for the operator and ask how you get into pay. They will tell you what documents you need.