My lease is up for renewal in March. Right next to a well owned by Rocky Creek Resources. Have not been contacted yet by Penn. Anyone hear of active renewals happening in northern Lavaca County? Wondering if price of oil has halted renewals.
Are you up for your 2-year option? Or is your entire 5-year period expiring? I have mineral interest in the J. Fox league myself and there are several things going on. There are about 1,000 acres coming up for the 2-year extension this year, and there are about 2,000 acres expiring since the 5-year lease 3/2 is up. There have been zero talks on the 2,000 acres, from what I have heard, and more than half of this acreage expired in the last 3 weeks. The people in the 1,000 acres are not sure if Penn will pick up the $500/acre 2-year option.
Now your tract is interesting, as my maps show that your lease was traded from Penn to Rocky Creek last year. To see this go to Boomtown Oil website and select the presentation given last Spring. This will show the Rocky Creek lease map after the trades with Penn.
Penn traded with Rocky so Rocky could make their last 3 units in our area including the Svatek unit to your west. This unit is on and west of CR 258/CR 261. Then from this road east Penn still owns a block of leases that go east to the North Fork Creek. Then Rocky has it from North Fork Creek all the way to the Olsovsky unit that Penn owns.
Go to the map on page 8 of that Boomtown presentation and you will see (Boomtown owns Rocky Creek). You might want to contact Boomtown/Rocky to see if you were assigned to them… you can also call Penn to see what is going on since you are so close to an expiration. If you could please let us know what you find… thanks.
Great info. Thanks. My five year is up in March. Part of a 600-acre pool that was leased to Penn. I will contact Rocky Creek as well. Waiting on production numbers on the well next to me.
Funny, a Landman contacted me yesterday about putting a unit together for a new lease. It wasn’t Penn though. He did say that Rocky Creek Resources’ Young well came in big, even though production numbers haven’t hit the RRC site yet.
Where is the lease located? I have property off 90A just past 531 wondering how close that well is to me. From what I have heard Rocky Creek is supposed to drill a well soon that I may be a part of right off of 531.
Good morning. Good news. Where is your property located? My family has unleased land off 90 between Yoakum and Shiner.
Komensky area, 1 mile north of 532 and 264.
Larry,
Was the landman with Delago representing Rocky Creek? Or are they with another operator?
The other mineral owners that just inquired about the unit location look to have land by Shiner. If you leased with either Tri-C or Delago/Rocky Creek, in the Shiner area, odds are your lease was assigned to Marathon. Rocky Creek is mainly drilling in Lavaca County north of FM 532.
Boomtown Oil (owner of Rocky Creek) sold the Rocky Creek units and leases in the Shiner area for $185 million. They needed additional funds to fund their operations and pay their investment firm some profits. Boomtown Oil is a private company.
My lease was with Tri-C and sold to Rocky Creek.
Gabby, how did you find out your lease with Tri-C was assigned to Marathon? I have a Tri-C lease on 531 and CR 306 just across the road from where Marathon is building 2 pads but I have not heard if my lease has been assigned to Marathon.
He said HouTex Exploration. But I know from previous experience that sometimes that doesn’t mean who the E&P company may be.
Hou-Tex Exp is owned by Marty Griffith, aka Griffith Land Services. Hou-Tex did some leases in 1998-2002, and Griffith Land Services did some from 1998-2009, mainly in southern Lavaca County. They might have been hired by one of our 7 drillers in our area: Rocky, Penn, Tri-C, Marathon, Teal, Modern, or Lonestar, or they could be a flipper. If you ask them who they are working for, they should tell you. As far as I know, Delago is the land people for Rocky. Penn’s person Mr. Pennington operates under a different company name, and I believe he might not be with them anymore. Just a little advice: see who they are working for, and get a lawyer to look at your lease. Also, your royalty should be at least 20%. Going rate is still around $1000/acre, but most try to get it at $600. They will go up. Now that company has been around for a while and they have offices in Houston, Victoria, and Gonzales. Maybe they are even with another major operator trying to get in this area. Interesting they knew info on the Young unit since Rocky is a privately held company. If you find anything out, let us all know. Shared information can help us all. Thanks.
Thanks, I will keep this updated as I hear more. Hopefully the Young unit will release production numbers sometime in March. I am keeping my eye on that one. I did reach out to Rocky Creek landman and they said they weren’t taking on any new leases, just focusing on what they have. That was about 6 weeks ago.
One thing, Devon drilled Big 5a 6 years ago. I know, because I watched the rig go up. Looks like they never frac’d it. Shows no production. Rocky Creek put in Svatek right next to it. Wonder what happened to Big 5a?
My 2-year option opens in April and I am a Penn Virginia lease. My landperson said they are going to pick up my option. I’m on 532.
Did Penn ever pick up the 2-year option and send you the check? I have heard of some others that were passed by.
I saw that Rocky Creek gave you an extension on your lease. They didn’t even go through Delago, so the landmen from HouTex is direct to Rocky Creek for anyone else out there wondering… Looks like your unit will be about 1,200 acres. You will be on the west side of Penn’s Olvsokly unit and Modern’s Grover unit. Penn has one more new unit that is going in between your new Rocky Creek unit and Rocky Creek’s Svatek unit. With today’s oil prices, who knows when this will happen, but if anyone does drill ANY new wells out there, it should IMO be one well to hold a new unit so leases do not expire. That is what Devon did in our area around 2015 and it was brilliant, although Penn bought these for cheap. And if Penn had not bought these units, they would no longer exist. Let’s all hope for oil prices to come back… it’s all about the Saudis and Russia this time…
Actually it was Del Lago that extended it for one year. They mentioned putting a unit together, but you are right, with today’s oil prices I wouldn’t count on it.
They recorded your extension in Lavaca County records on 3/3/20 as the Grantee being Rocky Creek Resources. Delago not mentioned; however, Delago is Rocky Creek’s landman. That is why it struck me as odd that someone from HouTex was doing the lease. I guess Delago contacted you after HouTex. About half of the leases in this new Rocky Creek unit you would be in are expiring in a couple of months, so Rocky Creek will have to start operations to hold, or they will have to pay out extension money to all these people. So they might go ahead and do the one well. Have not heard anything that they are going to stop drilling with their one rig. Penn Virginia did go down to one rig from two a couple of weeks ago.