John – like Kenneth, I’m surprised BHP informed you… possibly, was that a stipulation in your particular lease… or, earlier, did you have to give consent for them to assign the lease?
Date of the letter from BHP please.
If in fact the sale does go through, good luck with the new company!
Thanks in advance. Later – Buzz
Just received a letter from BHP ~ they are selling their lease of my property, sec 6, bk 54, twp t5, to a new group ~ Silverback Exploration LLC.
Since silverback is operating with hedgefund money hopefully they will start drilling soon…
John Harris, I was surprised but pleased to hear that BHP would bother sending a letter to inform you of this transaction. In the past with leases, drilling etc, the only way we knew was when we received a check from a different company. Our lease with BHP runs out Feb 1, 2015 so I hope we hear in advance if they are selling, dropping after 3 years or if we just get a check for the 2 year option. We are in Block 58 Sec 15-16
Good luck with possible drilling.
That’s right ~ it’s in our lease that they need my signature to assign it - the letter was dated 11/26/14 but I didn’t receive it until 12/2/14 (houston to tulsa) -
I hope they do drill ~ not many deep horizontal wells in the area yet
If anybody knows or hears anything about the Resolute well “Steamworks” let me know ~ the last I heard was from a conference call with the bankers that it was in flow back ~ no production numbers ~ I did hear they lost the bit pulling out of the horizontal portion of the well so they ended up with a lateral of about 1800 ft. instead of the planned 7500 ft. ~ its located Sec 2&4, Bk C21 PSL ~ haven’t seen a division order yet.
Dennis – if you had to ask… ‘Yes’. All IMO, of course. Later – Buzz
I talked with BHP they could care less
dennisjust got a call about water on my property sounds good to me am under lease with bph for oil. Do i need a lawer to look over this agreement it sounds very good? Thanks Dennis
Dennis,
You granted water rights to BHP in your lease. You will want to check with an attorney to see if that is considered an exclusive right.
Water rights are a surface issue, not a minerals issue.
Yes, but as the surface owner, he granted those rights to the Lessee in his O&G lease. The only question is whether it’s considered an exclusive right, which I am not sure about.
Anadarko Wolfcamp Successes in Loving-Reeves-Ward:
http://seekingalpha.com/article/2718375-anadarko-petroleum-wolfcamp…
Later – Buzz
In looking over a mineral deed in which I have some inheritance, it occurs to me that based on the language, I don’t know if I actually own interest or if it is expired. It states, “An undivided 1/4 of 1/16 free royalty interest in the minerals lying on, in and under the North one half of the North one half and the East one third of the South three fourths of Section 238, Block 13, cert no 7/1321.” This is different language than the the following paragraph that states we have rights to the minerals in a different part of Texas, where we were offered a lease. The deed was typed in 1988, and I am unaware of whether or not it was then or has ever been leased or drilled. I also can’t seem to figure out how many acres are actually involved based on those percentages and the look of the map. My portion would be much smaller, but I think I can figure it out from the landman’s assessment of the acreage in the other county, but I need a starting number. Thank you in advance if you can assist me in any way.
Jennifer ~ based on the description you give it sounds like you have approximately 1.25 net mineral acres in that section
Tracy ~ it’s my experience that a pool can take whatever shape the oil company can justify ~ however any portion of your minerals not included is free to be released when the current lease expires ~ if it’s not included in the pool then it isn’t HBP
Jennifer,
After checking the GIS Map I see where there are 4 Abstract numbers making up Section 238. Abstract # 5515/4281/4282/5564. To the southeast of your minerals in Section 305 is a horizontal well/API 389-33638. Completion Report on 33638 shows 564 BOPD/697,000 MCF Gas per day.
http://webapps.rrc.state.tx.us/CMPL/viewPdfReportFormAction.do?meth…
GIS Map of Reeves County Section 238/Block 13 and surrounding area:
Clint Liles
Can anyone help me with a pooling question? We have a horizonal gas well under our land where we own 590 acres of the minerals but 70% of the unit and royalty interest are diverted to outside our section. Can the unit have any arbritray shape. What goes in to deciding the unit diagram and getting it approved ? It seems odd to me that the pooling is severely diluting our royalty interest with property stranded on our nearby eastern boundry line and the other sections are getting more than 2 times our royalty. Any help would be appreciated. Thanks ,Tracy
FYI – an interesting permit filing today by Red Willow Production Co.: a 9,599’ lateral Phantom (Wolfcamp) test, 6.2 miles NE of Toyah in SECTIONs 16 and 17 of PSL BLOCK C-9 -– YUCCA #6H, A-1518:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli…
Later – Buzz
9,599’ is over 30 football fields in length or the length of a nine hole golf course.
Thanks, Buzz. Paul, great analogies, however I like the football field one best! Linton