So I recently learned that Contango Oil & Gas out of Houston bought White Star out of bankruptcy. Does anyone have any knowledge of this purchase and or the new company and how it will effect our leases in Payne County?
When there is a sale, it usually takes a few months to get everything sorted out. You may receive a new Division Order from the new company. In the meantime, White Star is supposed to keep paying you your royalties (if they are above the minimum amount stated on your DO.) If no drilling has happened on your leases, then any future activity will depend upon the strategy of the buying company.
White Star had put our wells in Shut-down-status over a year ago. There was no reason given, I guess that we will just need to continue waiting to see what the new company plans on doing with our leases and or wells.
They have had 3 of our 4 shut down for quite a while, now they fired a 2nd one up not to long ago, the other 2 are idle. Payne County Section 14 off Elrod Road. They should have to start paying lease money since they shut those down and not get away with barely running them to avoid lease payments, instead of can’t think of the wording now, but if they or even one is pumping they do not have to pay the lease every 3 years.
They can do that to keep the lease alive by having at least one all online at all times. It is better than having no payments at all.
Do you know anything about Grace 7 Operating, LLC our of Texas? White Star has had our lease for several years… but now have offer from this company.
White Star is being bought out by Contango. I do not know Grace 7, but they may want your minerals because they think Contango will do something more with them. Time will tell.
The Land person we are talking to, has said that White Star has not given us a good deal. The numbers Land man is saying is much higher than White Star ever showed. And they want to drill vertical and not pool. I don’t know that much about it, but sounds better.
Was just wondering about the Oil company. Grace 7 is in Midland, TX What are your thoughts?
Are they offering to lease or to buy? Anyone who drills usually has to go through forced pooling at the corporation commission if they cannot get all the acreage tied up either by working interest partners or by their own leases, so not sure what they are telling you about that.
A 3 year Lease.
pooling with White Star was only 1/8th, this is not pooling and 3/16th
sounds a lot better. Vertical drilling… . but just wondering if anyone knew the oil company.
Nothing wrong with a vertical well and 3/16ths is much better than 1/8th. The draft lease will probably need some revisions to make sure that you have a depth clause, no post production charges, a commencement of drilling clause, limits on the shut in time, no warranty, no use of oil, gas and water for free-just to name a few.
ha hmmm I really don’t know about any of what you said… That’s how dumb I am about all this…haha But will read all, in reference to what you have said, and appreciate all your information. Thanks a bunch…