Replies to This Discussion

Permalink Reply by Gale on May 9, 2011 at 18:11

Our mineral rights are likely in the same general area as yours, I've been told by 1 company we have interest likely close to yours, I've been told by 1 company we have dealing with that semisic has been shot all over that area, I've not been able to find out any results other than tell tell me they do know there is oil, in the Travis peak formation, why is it so hard to find out information? It's so frustrating, I've called Samson several times in the last 2 months and I really still have no answers. Once you are under lease it's like you no longer exhist

Permalink Reply by adubu on May 10, 2011 at 4:17

Spencer---unfortunately you are HBP with these old wells and doubt if in the old leases you have had depth pugh clauses back in those days, you can have your old lease reviewed by oil & Gas Attorney to see if any language about developing the minerals especially the deep rights that could give you a cause of action to have deep rights lease terminated but that would be possible too costly unless you have 1000s of acres of minerals.  Suggest post that question on Ben Elmore Group--Know Your Mineral Rights Texas--- your are probably stuck with old leases for long long time--- one day the operator may drill the deep shale if and when NG prices get back and stay around $7-8 but that may not be in our life time. BP has the money and ability to drill that type of well

Permalink Reply by Phillip Briggs on May 10, 2011 at 5:16

What adubu said.  More'n likely, if it's an old lease, it's HBP.  I have a number of ancient wells, and the original leases never had depth clauses... a relatively recent addition to leases.

 

"IF" there were only one well in the unit, you might've had a claim to 'economic production'.... a few units have changed hands, because there was only well drilled on a unit, and royalty owners 'lawyered' up and forced the company to drill another well... But, since you say there are 13 wells on it, that route would probably be a dry hole.

I see little interest in developing shale wells on these HBP units... with the cost of gas so low, it's not going to happen.  Have three units that had planned shale wells, back before the price collapsed... now there's no interest by the company that owns the Units.