Curious to see if anyone else is receiving offers in Johnson county. I’ve heard of some companies moving into the area to drill. Can anyone confirm?
ATX producing a prodigious amount of drilling apps
Got multiple Horizontal Well Applications from ATX in T46N and have been contacted by Western Land Services about leasing. Any words of wisdom on this??
What range? Anyone know what leases are going for near converse/Johnson border. I’m hearing all different numbers
The wells are to be located in 81W
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Hello JoCo WY mineral interested group. Back in 2017, I entered into a mineral lease with Western Land Services on behalf of some outfit called “Buffalo Creek Energy” that was a broker, buying up minerals in the Johnson County Sussex area (T46N, R80W, 6th P. M., Johnson County, WY and T46N, R81W, 6th P. M., Johnson County, WY). Ownership of these mineral rights are highly/very fractionated among multiple owners and entities (over 15 I think…I’m surprised they were able to get it leased at all, but seems like they did) They then worked with ATX energy out of TX on the leases. There was a flurry of applications to drill horizontal wells in this area soon after. However, with the crash of oil prices in 2019-2021, drilling/leasing activity in that area has ground to a proverbial halt. All of their approved drilling applications have expired un-executed and currently are not being renewed. I was told ATX has pretty much bailed out of any active drilling in the JoCo. sussex area? My lease was a 5 year expiring this Nov.22. Does anyone have any intel on what’s going on in that area? Anyone getting any renewal offers?
I am also interested in hearing about this. Pretty sure I saw a recent application or drilling in Mowry area of Johnson county, in the same 46N 80 West where ours is, but the section was 16 and ours is 4 and six.
Maybe Josh… Up North around sections 16 there is proven oil reserves in the ground. Ours is well south of there in sections 27, 29, 31 I fear that they leased the sections, did some Geophysical work, discovered there just wasn’t that much oil there and moved on…
Hello Duckman. I have 2 APD’s filed by ATX in December of 2021. They are located in 46N 80W. No activity since. I see that ATX filed 121 applications in 2021 and none of them have been approved. Do you know if ATX is producing anything in the area. Any information on ATX or the area would be appreciated. Thanks in advance
ATX is now VTX energy partners and has shifted focus to Permian/Williston.
Hello Chingy. Here’s what I know. Back in November of 2017, a fly by night outfit called “Western Land Services” doing business on behalf of “Buffalo Creek Energy” (another shady outfit) put together a crappy lease proposal for some mineral rights that were ‘highly fractionated’ (meaning that many different people owned small percentages of rights in that area. It was about 9 sections in T45/46N R80W and T 45/46N 81W (R81W sections were 25, 26, 34, 35 and 1, 2, 3 in T45N) ) and (R80W was sec 31 in T46 and 6 in T 45N) As you state above, there was a flurry of horizonal drilling applications for those areas. The applications were good for one year. 2018/19 came and went with no drilling occuring. Then the pandemic hit, and if you remember, there was point in Spring 2020 where crude actually traded below zero. Prices were so low, that I think ATX bailed out of the whole area (that is a guess BTW), and never came back. The last thing I ever got was an application to drill some horizontal wells on August 17, 2018. Since then, nothing. The lease was signed 27 Oct 2017. It was a 5 year lease, and thus expired 27 Oct 2022. That date has come and gone (obviously) and thus they are not renewing. I would NOT sign another lease w/them anyway. 3 Crown Petroleum LLC was another leasing agent doing business in that area back them. It is a good outfit. I would sign a lease with them. SO BL: I think ATX has bailed outta that area. Probably drilling is too costly for the potential returns compared to current crude prices. OR, they did a bunch of Geophysical work and discovered there just isn’t that much Oil there? I don’t know.
Looking at PhillD’s post… Looks like ATX (now VTX) is kaput in Johnson county for now. The post states: "The Company will target opportunities with established production and development profiles, including those in the southern Delaware Basin and the Williston Basin, where the management team has demonstrated a track record of success. Williston is ND, but a long way from Johnson County, and I’m not sure the areas we are talking about around sussix would be considered ‘established production’??? Bummer…
Duckman,
Thank you for all the information and update. I will continue to monitor what I can and provide you anything I come across. Appreciate it if you would do the same.
Has anyone received any interest in renewing the leases signed with Western Land Services circa 2018 and/or 3 Crown in the Sussex area of Johnson County? ref above conv? Any renewal letters or renewal money paid? Thx…
Hi Duckman. The initial term of 5 years comes due October 2023 but there is an option for 3 additional years. Have not heard anything yet but will let you know if I do.
Hello Johnson County/Sussex area mineral holders. I just called the current land lease Point of Contact (POC) at ATX. Mr Winchester (what a great name huh?) gave me some interesting information.
- Yes, many of the current leases initiated by the mineral lease brokers/shysters (aka WESTERN LAND RESOURCES) , have expired from their initial 5 year lease. ATX did NOT opt to take the option to renew the 3 year optional renew lease. They ARE sending out notices of renewal of some of their horizontal drilling permits in the areas of Township T45N Range 80/81 west and T46N 80/81 west. However, this is just an investment preservation action. Mr. Winchester stated that they cannot and would not initiate any drilling without re-leasing the mineral rights to the rights holders who’s leases have expired. He also stated that with the current price of crude and low reserves/cost of extraction in those areas, it is currently just not fiscally prudent to begin any horizontal drilling at those prices. ATX committed significant investment $$ in that area and would like to recover some of their investment capital in the future, but currently that is not possible. There might be a possibility of ‘packaging’ the permits and mineral leases they hold in the area to another producer, but have no plans to do that at this time. So it is a “wait and see” situation for the future. Holding on to their pre-approved drilling permits just in case things turn around. Don’t hold your breath though.
I think we opted not to do the three year rider, and I had heard the same as what Duckman said from their old landman. I am hoping someone else picks things up, as we spent a good amount on a lawyer for a good contract, and a lot of haggling with ATX.
Have you seen any Drilling activity around Sussex lately Joshua??
I have not heard anything new, but I haven’t really been heavily researching