operater drilling our acreage and we're not leased

hello -

according to the railroad commission plat, operater has 3 wells staked on our acreage and we're not leased. what's gonna happen next??


Hi Richard -

Interesting situation and perhaps a very lucrative one for you.

Are you the only mineral owner?

Has anyone ever contacted you about leasing?

What is your legal description? I'd like to take a look at what DrillingInfo says about the Permits.

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Section 11, Block 3, H&GN

we have 24 out of the section.

i think we are under the radar; we have been approached to purchase but those people have not shown much interest to lease.

On DrillingInfo I see leases take in or prior to 2011 from Ruth, Dorothy, and Jeffery Roberts in Section 11.

In the Mineral Tax Rolls for the 2 Wells that were completed in 2011 and have been producing since then I found Charles Daniel Roberts, Dorothy Holder Roberts, Karen Roberts Special Needs Trust, Richard J Roberts, Ruth D Roberts, Wesley Keith Roberts, and Martha Lee Roberts Thomson.

It appears offhand that your interests have been held by production from the two producing wells since 2011, just not under a lease signed by you.

the 4 of us - me, cdr, rdr and mlrt - signed a lease with pugh clause 100' below deepest well which is bone springs. we are unleased below the two existing wells. above is hbp. i understand we are the only unleased in the section.

We will need to read or see the actual wording of the lease(s) or the subject provision.

100' below what?

attached lease language and the deeper tvd info of the two hbp wells.

21-ourpugh1.jpg (280 KB) 22-OURSkath3112GISIdentifyResultsWellLocationAttributes.pdf (94.3 KB) 23-ourpugh2.jpg (164 KB)

You can contact Energen to discuss leasing your minerals. The landman can discuss the lease status of your minerals with you. If you do not lease, then Energen will carry you as unleased mineral owners. After Energen recovers 100% of the drilling and operating costs, then you will essentially be working interests for your minerals. You will be credited with you share of revenues less any monthly operating expenses. It appears that you own small fractional interests and so Energen will not forego drilling and development.

for sure they are going forward. i agree, no doubt we don't count for much in their big picture. for sure they will simply carry us, i guess, and send us a bill but will we make any money that way? waiting until they get all their money back first could be a looong time . . . if at all? i don't see how it would be in their interest to take a lease now knowing that we would be at the cow's tail for revenue distribution with what the type of known quick decline curve these laterals have. if this is the definition of conundrum, then the question is what to do?

Did you turn down a lease offer from Energen? Most companies prefer to lease even snnall interests in order not to have to keep track of such small working interests and well payout. Call the landman in charge of these wells and tell him you want to lease. You will do better if you can all 4 work together. Possibly there is a problem with no perf zones and Energen could be more motivated to work with you.

Dunno. I HAD a friend that Mitchell Energy drilled wells on his 2 section property near Groesbeck, Texas and never made a contract with him. They CLAIMED they were holding the royalties for him in an escrow account that his lawyer had access to while he served 10 years at Huntsville prison for a murder of his brother he said he didn't commit. Funny thing, after he got out of prison, within 2 years someone murdered him and his body was found buried in the bottom of one of his spring/water wells on his property 10 years later.....and the money in escrow?...the lawyer got it all and his land/home.

The moral of that story is to never trust anyone....especially lawyers. But, you gotta have them to represent your interests in dealing with the oil and gas companies drilling the mineral resources on your property. Anyway, keep an eye peeled and don't let them try to steamroller you into any contract agreements that are not highly beneficial to you.

LOL! Allow me to review my notes... ;-)

1. Poke the lawyers in both eyes.

2. Ask the lawyers for help with your issue.

3. Never meet anyone "alone" in the middle of nowhere to look at your well.

Miss any important points?


No, Will. That’s about it…

On these “deepest depth drilled” clauses, you have to look out for a pilot hole, where they drill below where they intend to produce from, and then come back up the hole to perf or drill the lateral.

Please, no eye pokes.

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