Replies to This Discussion

Permalink Reply by Judy Berry on June 24, 2012 at 14:15

Several mineral owners in the Moffett area have been contacted by CLS Energies. According to the landman, at least one has already signed. Contact will be made with Mr. Dudley and others. We are weighing our options and asking specifics. Yes, we know your family. We appreciate your advice and information and continue with guarded optimism.  

Permalink Reply by Ryan Mott Oliver on June 23, 2012 at 10:24

We were approached Petro Land on behalf of Encanna but not CLS. We have rights in Southern Lufkin but no activity for over a year till prices go up again.

Permalink Reply by Robby Patterson on June 23, 2012 at 11:01

There has been a CLS around for years (Contract Land Staff out of the Houston area).  I don't know if this would be the same group or not.  I have known guys who have worked for this company over the past 20 years or so, but in the past they always specialized in surface damages (well sites, pipelines, fiber optic, etc.) Five years ago I think they had a temporary office in Lufkin. I think the name of the company that bought the Cotton South field from Encana NW of Lufkin is SND Energy.   Also, Ryan you are correct about Encana.  They had four pads staked NE of Diboll 18 months ago and that project was put on hold.

Permalink Reply by Robby Patterson on June 23, 2012 at 14:46

Mike,

You are correct.  I hope for everyone in that area, they will come back when prices go back up.  As we both know, the one constant thing about the oil and gas business is change.  I had worked contract land for Encana for five years and enjoyed working for them.  We had a three man crew and our workload dropped off substantially.  I voluntarily quit, hoping there would be enough work for the other two guys so I have been "out of the loop" since then.  I don't know, but I assume they must have a "continous drill clause" in some of their leases and that is why they have continued to drill a few wells in the Nacogdoches/San Augustine area.

Robby   

Permalink Reply by dbob on June 23, 2012 at 15:33

Mike

The continued noise from the Leor Deep Bossier well near Apple Springs suggests the combination of temperature, pressure, CO2, and modest fracturing success seems to have slowed any work on the Deep Bossier right now.  Of course, Angelina County and vicinity is an interesting place, particularly when you combine Angelina River Trend from the Haynesville, Deep Bossier prospects, Cotton Valley (dry) that has been tapped to the north, near the Cherokee/Angelina county line, Austin Chalk, Yeuga, and other formation success in Polk and Tyler County, Glen Rose, Buda, Edwards, Woodbine Eagleford to the west.  Everything seems to suggest there is potential, or that the geology in the area is really complex as its on the edge of the Sabine Uplift. Need more success on the liquids stuff to the south and west, or for gas prices to go back up, to make the area interesting.  

Permalink Reply by J B Nabors on October 11, 2012 at 2:39

Permalink Reply by J B Nabors on October 11, 2012 at 3:10

Our family recently (October 5) received an offer from Ben Miles of CLS Energy, acting as agent for Devon, offering 1/5 royalty and $350 / acre for ~1/4 section.

The property is located ESE of Lufkin, off of HWY 59 in the Santiago-Erie Survey, A-12.

Offer included Draft Check.

Permalink Reply by J B Nabors on October 11, 2012 at 4:31

Ooops. Off of HWY 69. My apologies.

Permalink Reply by J B Nabors on October 16, 2012 at 17:58

(Duplicate Post from "Devon Permits New Horizontal James Lime" Discussion)

We received an offer dated 10/5/12 from Ben Miles at CLS Energy representing Devon on 10/11/12.  Property is located on the SW side of HWY 69 near the junction of HWY 841.  

Offer was [a 1/8th royalty old lease form,] $350 per acre for a 3-year paid-up lease, 20% royalty, and included a draft, W-9, Memorandum of Lease, and Boilerplate old lease form.  

I drove down to Lufkin today, 10/16/2012, to talk to Mr. Miles.  I told him that, although the family was willing to sign a good lease, the lease he offered did not qualify and needed some changes.   Mr. Miles replied "since the time he had sent the offer [about 10 days ago] Devon had changed its mind and was 'concentrating its interests' further south."  They were still willing to honor the lease proposal they had made, but would not consider making changes. 

I do not know whether the above information is truly Devon's intention, or whether Mr. Miles was using that as an opening gambit in lease negotiations.  Regardless, I told him that in view of that infomation we were not interested in leasing at this time. 

Permalink Reply by Mel Smith on October 18, 2012 at 7:23

FYI-  CLS Energy is out of Nacogdoches.....it is affliated with Chapparel Energy, Inc., which is owned by Jim McReynolds (was a Democratic member of the Texas House of Representatives).

I know of persons who received 1/4 + $500.00 acre sign on....You need to add  "favored nations clause" to your lease...