I just received a co-op agreement from Magnolia for Thundercreek Co-op. Just want to know if anyone has any information if this is already being drilled or is this really in the beginning stages. My portion is part of the Borgstedt unit in the Joseph sharp survey & Griffin survey in Washington County. Thank you for any information!
Although Magnolia hasn’t filed any drilling permits under a name like Thunder Creek, it looks like they may have formed a big allocation unit that combined the Borgstedt O.L. Unit with the Liebscher O.L Unit, the Mueller-Lievien Unit and the Boone Unit. Below is the unit plat they filed in 2021 before drilling one of the Boone wells.
In the past couple of years Magnolia has created a bunch of co-op units where they drilled new allocation wells. From what I’ve seen those unit agreements were circulated for signature until after most, if not all, of the wells they planned to drill in the co-op unit had been completed. Unless your acreage for some reason was missed during the initial signings I’m not sure why you wouldn’t have gotten this agreement earlier since it looks like the new wells may have already been completed.
If it is like others I’ve seen the co-op agreement Magnolia sent you should have included an exhibit that shows the boundaries of the new co-op unit they formed, and I think it should look similar the plats attached below. That combined unit is so large it had to be shown on two separate plats, so you will need to connect the first two pages together to get the full picture of the unit. The breakdown of the acreage that was combined to form the new unit is listed on the third page.
Magnolia seems to have some good land people. If you don’t understand the status of the agreement they sent you, the cover letter that came with it should have included a phone number or email address for a person you can contact about it. If it doesn’t post here again and I’ll give you a name you can try.
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Yes I am receiving royalties on the Boone creek and new Borgstedt wells . I just received the co-op agreement on January 30, 2024 and have been trying to reach Luke McCarley by phone with no response. I assume the Thunder creek co-op is new. If you have an additional name I could reach out to I would greatly appreciate. Thanks for your response!
If no luck getting that other person you can try Emily McMahon at Magnolia.
Julia, I put the phone number and email address for Emily McMahon in my last post but the forum administration must have edited it out. Try calling Magnolia’s main number in Houston and ask for her extension.
The drilling permit for the Boone wells says they were drilled under a production sharing agreement. I’m curious if Magnolia had sent you a PSA covering that combination of wells a couple of years ago and then recently sent you another one with different name and boundaries but that also includes the Borgstedt Unit?
My agreements have always been co-op agreements for the Boone wells. Not sure I’ve seen a production sharing agreement. But I am still learning and trying to figure everything out. I inherited these mineral rights about 10 years ago and learn something new all the time.
Thanks Julia. Although the Boone permits say they are covered by a PSA I expect that same thing is shown if there is a co-op agreement establishing how the production will be shared instead of a PSA.
Again, just a guess, but the agreement you previously received involving the Boone wells may haveonly included part of the original Borgstedt unit and the Thundercreed Co-Op unit will include another part of it.
With previous co-op units it looks like Magnolia typically filed permit applications for two, or more, of the wells they planned to drill in the co-op unit boundaries before sending the co-op agreement out for signature. If you’re able to get in touch with the land people at Magnolia they should be willing to share a plat showing the wells they anticipate being drilled in the Thunder Creek unit although the co-op agreement won’t commit them to drill everything they plan there.