Penn Virginia consent to assignment of oil and gas

Oil and Gas Leasing Help
1

I received a letter from Penn Virginia for a consent to assignment of oil and gas lease. They want to assign a % of the lease to a Ted Collins Jr. and a % to a Plein Sud Holdings LLC. Has anyone else received a similar letter if you have a lease with Penn? What exactly does this mean and how would it affect my lease or future leases? Thanks

2

Kim,

I don't know the answer to your question, but I would also be very interested in finding out how assigning parts of a lease affect future leases and even the current lease. We've never signed a lease, but we've had several offers lately and we want to learn all we can about the leasing process before we ever do sign one. Thank you.

3

Gail and Kim:

This is an interesting issue that had never entered my thick scull. This could cause the mineral owner some real headaches even with a very good and somewhat restrictive lease. If we ever get another chance to lease again, this is an issue that needs to be addressed.

Once again, this forum brings issues like this to the forefront.

Thanks

Gail Kocian said:

Kim,

I don't know the answer to your question, but I would also be very interested in finding out how assigning parts of a lease affect future leases and even the current lease. We've never signed a lease, but we've had several offers lately and we want to learn all we can about the leasing process before we ever do sign one. Thank you.

4

Kim...

I received one of these as well a couple of months ago and called my contact in Penn's offices in Houston to find out what tract this was about..since I have about 8 tracts leased with Penn. I found out it was on a small tract close to FM 1295 close to the FAyette/Lavaca line.

Now what I have heard since, and not from this Penn rep..was that this is done by Penn Virginia on all leases that are getting ready to be formed in a unit. This Ted Collins and Plein Sud Holdings are all the top investors with Penn...but now with the downturn in oil prices not sure if we will see this soon...however, where is your property located ? I am in the John Fox survey... thanks

5

Mr. ML - my property is located in Moravia off of FM 229 just East of the Moravia Store. My lease expires in April with a 2 year option available. It will be interesting to see if they renew with these low gas prices.


MR. ML said:

Kim...

I received one of these as well a couple of months ago and called my contact in Penn's offices in Houston to find out what tract this was about..since I have about 8 tracts leased with Penn. I found out it was on a small tract close to FM 1295 close to the FAyette/Lavaca line.

Now what I have heard since, and not from this Penn rep..was that this is done by Penn Virginia on all leases that are getting ready to be formed in a unit. This Ted Collins and Plein Sud Holdings are all the top investors with Penn...but now with the downturn in oil prices not sure if we will see this soon...however, where is your property located ? I am in the John Fox survey... thanks