Scout Energy Acquisition of Linn Wells


#1

I have read that Linn Operating has sold $122M oil and gas assets in TX and OK to Scout Energy Mgmt. TXRRC Production site now lists Scout as operator for our vertical well lease effective APR 2018 but as of today production numbers for APR have still not posted whereas they usually post on the 20th of each month. I called Linn last week to ask if they will still continue paying royalties. I got a not very specific No answer and they gave me phone number for Scout royalty owners. I left a message with Scout with all my specific lease info but my call has not been returned. I am worried that I am not going to see royalty payments the end of this month for APR production. I see all the Linn wells in vicinity of BLK 35 T2N if not all of Martin Co are now operated by Scout. Does anyone have the scoop on what is going on? Will there be a seamless transition of royalty payments? Obviously I would need to set up direct deposit with Scout if they are indeed handling royalty payments. Scout does not appear to be affiliated with Oildex either.


#2

We are in somewhat a similar situation. transition. its exhausting!!! Not to be nosey but who sent your check to you previously, I mean what was the name on the check??


#3

I was surprised that the transition from Linn to Scout was seamless. We (other owners) all got paper checks in the mail for Jun 2018 from Scout without having to tell them anything. So I was pleased about that.

Here is their address: Scout Energy Management, LLC 4901 LBJ Freeway, Suite 300 Dallas, TX. 75244 972-277-1397

Then I was really surprised to get July royalties early around mid-month (for MAY 2018 production) but the oil price was lower than June (APR production) when it should have eeked into $70/bbl range, as though it was sold at the previous month’s price.

Now the individual well production has changed significantly after a two month all time low on last payments from Linn - don’t know if that was due to takeover of the wells by Scout or wells shut-in for fracking other nearby wells.

Still as of today, Scout has not posted production data to TXRRC web site for APR or MAY for any of the Linn leases they took over, that I have looked at. I suppose they have a lot of new wells to manage and catch up the paperwork. The numbers for Jun royalties were suspicious though as they had 3 different wells produce the exact same Gas amounts as though they just took the total and divided by 3.

I have still not yet found out how to set up direct deposit with Scout.


#4

Our previous royalties were paid by Linn Operating and were direct deposited. Check stubs and data for Linn royalty payments could be downloaded from Oildex Web site but last I checked Scout is not a client of Oildex.


#5

It sounds like they had their ducks in a row in June but something definitely changed. We have been dealing with Surge Energy and we are still waiting for direct deposit to be set up since April. They dont pay for 2 mths of production, only 1 behind. I think its their way of holding on to the oil for their benefit. Would you share how to access that info from the TXRRC website? Thanks


#6

Oh, sorry for late response.

Production Query web site: Specific Lease Query Criteria

You have to know District, County and Lease ID Number. There’s a map somewhere that shows which counties are in which district. Martin Co is District 8.

There is a way to search for Lease ID from this menu by Lease name or Operator but it is a bit tricky to use. Best, easiest way is to find Lease ID by using the GIS map and clicking on your oil wells. If the wells are not producing yet or have not been reported to TXRRC as reporting yet, a lease ID will not have been assigned.