Thanks for replying. I now have an oil and gas attorney. The status now is that all the 27 heirs to the other unit in the production share agreement have to sign. He reports that that is moving "right along". Drilling rig was supposed to move onto the site on 8/4 but instead learned of this PSA. No rig. Also that company would be drilling no shale wells until after first of year.
Now I read that the company is exploring a sale of total assets as in a PetroHawk type deal. I figure its all set or no leak of this would have come out.
So, PSA or not, I figure will be a long time before I hear anything else.
The lease was expiring b/c of no production over the years..maybe it was cheaper for company to get permit, prepare a site ..to hold the lease then would be to release my unit? Unless this idea of a sale came up suddenly around August. And do these things ever come up suddenly?
If I ever get a copy of the PSA I will publish it so we can all see what these things are. In the meantime I guess I not going to be "rich" quite yet.
You sound like you know what is going on in Panola County. I can't find a place to read about Production Sharing agreements. Do you know what they are and how they work? Are they the same as combining units? I got a document from oil company last year forming a 1500 acre unit from the 630 acre unit I am in. I am the only mineral owner that did not agree. Now they are saying they want to do a production sharing agreement with the unit next to mine. What does this mean?
Hello! I hope the site is a place for you to learn, network and contribute. My name is Keith and I started the site in June of 2008 to open up lines of communication between landowners. Since then, we have grown to over 10,000 members.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More