Jack County, Texas

Oil and Gas Leasing Help
1

HM Childress Survey A-1909 Jack County Texas. Current well operated by XStar Resources and has been on 123.2 acre lease for decades. They are second operators. Newark E&P has filed W-1 application for Marble Falls, Barnett, etc done in Sep 13. On approved W-1 it list's Newarks intentions, however in "pooled" block of application in all requested formations it says No.

How does this work with XStar Resources having operated well on the 123.2 Acre site and Newark E&P filing to drill well on same site?

Does Newark have to pool with owners prior to drilling?

Will Owners get new division order for this new drill?

Sounds like Newark and X-Star have an agreement or Newark got that lease from X-Star and RRC web-site is just behind in posting?

Any information is appreciated!

Patrick

2

From what you've described, it sounds like Newark is planning to drill a lease well.

The existing well may be in a different zone (depth) or, if in the same zone targeted by Newark, the field rules permit higher density (more wells) on the same acreage.

Newark apparently isn't planning to pool multiple tracts. You pool tracts, not owners.

The royalty owners should receive new division orders if the well is a producer.

It's likely that Newark bought the lease from X-Star (or perhaps just a deeper zone) or farmed-in from X-Star. Newark ought to be able to offer more details on this.

If you are a royalty owner on this property, I'd give them a call.

3

Jeff,

Thank you for the information. When i call what department would you suggest i ask for?

4

Ask for the land department.

5