I&GNRR A-633
I read that PeeDee Energy Services offered 600, 1/5, 3+3. Procella A 69. Four miles nw of Grapeland. Does anyone know about this company and acreage and if there is a play starting. I read the Procella is about 3300 ac gross. I have had an offer of 500, 1/5, 3+3.
Expand (old Chesapeake) leased in the J.D. Procella A-69 & F.H. Parker 853 Survey’s northwest of Grapeland for $1,000/nma & 1/4 cost free royalty. Pee Dee was supposedly the broker. Expand is drilling a 30,000 ft. horizontal just west of this area.
Most folks in TX would want 1/4 and no option for the extra three years, but depends upon the area. . Wise to get an attorney to review the draft lease as they are rarely in the mineral owner’s favor and need significant edits especially for the cost free royalty.
Pee Dee has recorded leases covering about 3,800 acres in 13 surveys west of Grapeland:
Expand has leased acreage in ten of those 13 surveys, so it is likely that Pee Dee is (1) leasing directly for Expand or (2) hoping to flip the leases to Expand. Since they are offering a 25% royalty, it is likely that they are a leasing agent for Expand.
The Bob Yancy horizontal well drilling is completed & the rig is being moved. A pipeline planned and they are inquiring about buying surface water for frac.
