What is the significance of the location cited at the end of the STR nomenclature? If I own 25 NMAs in the SW4 of a STR and a well is in the NE4, are my NMAs discounted or nonparticipating in that Well?
It depends upon the spacing of the well. For example, if the well spacing is a conventional gas well at 160 acres and the location is in the NE4, but you own in the SW4, then you will not be included in the royalties. But if the gas well is 640 acres in the section and the section is 640 acres, then you will be included. Oil wells that are conventional tend to be 80 acres, so same idea, but which half of the quarter section will matter.
Horizontal wells tend to be spaced at the full section, but there are exceptions.
if you give a specific section, township and range, we can help more precisely.
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Enerlex sent out offers to purchase my mineral rights to property in San Augustine, TX. Anyone know if Enerlex is drilling for minerals on C Jessup Survey, Ab. 169. I assuming they are talking about Ned Garrett survey A-125 (32 acres), and J. M. Fitzgerald Survey A-338 (20 acres) which I inherited from my grandparents.
Also, if anyone has sold to Enerlex, did they pay within 30 days?
Their offer: “We would like to extend an offer to purchase the mineral interests we believe you own as described on the enclosed conveyance for $1650. Upon receipt of the conveyance, Enerlex will make a $150 nonrefundable deposit towards the purchase price. If we received the conveyance within 7 days, we will add an extra $100 as a signing bonus, for a total nonrefundable deposit of $250. The remaining balance of $1500 will then be paid within 30 days subjected to title approval.”
The conveyance description they provided is: C Jessup Survey, Ab 169
The C Jessup Survey A-169 is just north and entirely different than the Garrett Abstract. Fitzgerald is just to the south of Garrett. wells in Apex has a rig or two running into Jessup for horizontal well. Ned Garrett and Fitzgerald are open for horizontal drilling.
Be aware that the title research can takes weeks. It is not counted in the 30 days. Are you open to thinking about leasing instead of selling? Another avenue of income given the area.
Enerlex is not a drilling company. They are a mineral buyer.
You should double check to make sure you or your ancestors do not have any money in suspense, or that an oil company doesn’t have any money in suspense attributable to this interest.
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Hi tim_dowd, thanks for the information. Is there a website that I can check for money in suspense on drilling or horizontal drilling in the Ned Garrett/J.M. Fitzgerald survey.
Hello M_Barnes, thanks so much for the information. Leasing for income sounds great.
See the Jessup in blue and the other two just to the south. I do not see any wells in Garrett or Fitzgerald so no income at the moment. But you can see that you are sitting in a blank zone for horizontal wells. Exco Resources and Apex Natural Gas have rigs running to the north, so time will tell.
You can check the Texas unclaimed funds at the treasurer’s office just to make sure there are not some old funds.
Question: Good afternoon, M_Barnes, after looking over the map and the RRC well locations to the left, it appears that there are three permits on A338, with one of the three permits possibly drilled and then plugged. Am I reading that correctly?
Going from west to east,
Ovintiv BSI/USGS Unit F6 1H Drilled 2014. No production
Ovintiv BSI/USGS Unit F6 2H Expired permit, never drilled. These two come in from the south.
BP Roo Gas Unit 2H Dry hole. P&A 2019. Came in from the north.
Two were drilled, but no production.