Ridge Leases in Glasscock, Section 42

I have a 3 yr lease with Ridge Natural Resources LLC (Energy investor) and recently received a letter from a Dallas law firm that has investigated the leases and there maybe a legal claim. Has anyone been contacted by this law firm (Hamilton & Squibb) or by Ridge ? I already have mineral interests in this same area with Energen; so I'm trying to sort this out. The Ridge lease is a top lease in the same section that I have mineral royalties; only this is the non-drilled areas.

Hi, Jim -

You should contact Hamilton & Squibb and see what they have to say. There are a number of extremely unscrupulous individuals and companies out there that are obtaining what appears to be "Top Leases" when they are actually "Leasing" the royalties under your existing Lease(s) - in many instances Leases that are already producing.

Very snaky, but apparently not particularly illegal. At least not yet.

Would love to hear what Hamilton & Squibb have to say.

ALWAYS consult an experienced Oil and Gas Attorney (not an Attorney who's focus is on other areas of the law) when dealing with this sort of thing.

Hope this helps -

Charles Emery Tooke III

Certified Professional Landman

Fort Worth, Texas

Charles - many thanks for the message. I intend to talk directly to Hamilton & Squibb to see what they say. I was very suspicious of this "Top Lease" whereby Ridge was interested in leasing all of the area of the mineral lease with the exception of the Energen wells. There 8 producing wells on section 42, just south of Garden City which is the producing lease / mineral royalties. There is some additional horizontal drilling going on in this area; so there may be more wells established in the future. Just north of section 42 is section 31, and I have a lease there with Double Eagle.

Anyway, many thanks for the info. Will stay in touch.

Best regards,

Jim Millsap

I can look your areas up for you is you would like.

As "Hot" an area as Glasscock County is, you should maybe decline any offers for "Top" Leases. Open acreage might bring you much higher offers.

Charles - yes; I'd like your review on the mineral lease I have in section 42 / blk 33. This is approx 13 miles south of Garden City; so about 1.5 north of Reagan county. There are 8 producing wells on this section by Energen (as far as I know). There have been some active horizontal drilling on the south end of section 42 with a take out area to the north on section 31. I have a lease in section 31 as well which is the N 1/3 section just in the take out area for the newer Energen wells. Just wanted to get your take on this area for section 42 and section 31. Energen has future plans for more drilling here according to their website and 2016 stockholder presentations. Seems like a great lease to have with more production coming in the future. Will have to see.

Thanks in advance for your comments here.

Jim Millsap