Black Stone Minerals, L.P. Announces Agreement with Aethon Energy to Restart Development of Shelby Trough Acreage

May 05, 2020 07:30 AM Eastern Daylight Time

HOUSTON--(BUSINESS WIRE)--Black Stone Minerals, L.P. (NYSE: BSM) (“Black Stone Minerals,” “Black Stone,” or “the Company”) today announced that it has entered into a development agreement with affiliates of Aethon Energy (“Aethon”) with respect to the Company’s undeveloped Shelby Trough Haynesville and Bossier shale acreage in Angelina County, Texas. The agreement provides for minimum well commitments by Aethon in exchange for reduced royalty rates and exclusive access to Black Stone’s mineral and leasehold acreage in the contract area. The agreement calls for a minimum of four wells to be drilled in the initial program year, which begins in the third quarter of 2020, increasing to a minimum of 15 wells per year beginning with the third program year.

“We are excited to partner with Aethon, one of the most experienced operators in the Haynesville Shale, to restart development of this important, high-net interest area for Black Stone,” stated Thomas L. Carter, Jr., Black Stone Minerals’ Chairman and Chief Executive Officer. “The Shelby Trough holds enormous resource potential, and our deal with Aethon positions both companies to benefit from decades of attractive development opportunities.”

About Black Stone Minerals, L.P.

Black Stone Minerals is one of the largest owners of oil and natural gas mineral interests in the United States. The Company owns mineral interests and royalty interests in 41 states in the continental United States. Black Stone believes its large, diversified asset base and long-lived, non-cost-bearing mineral and royalty interests provide for stable to growing production and reserves over time, allowing the majority of generated cash flow to be distributed to unitholders.

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WOW - Looks like BP has boogied!

I suspect that much of the Haynesville drilling in Nacogdouches, San Augustine and Angelina counties over the years has been on Black Stone mineral servitudes or fee lands.  And that both BP and XTO had prior JV relationships with the company.  Now Aethon will be the operating partner filling that roll.  I expect to see Aethon get busy with a drilling schedule sooner rather than later. 

GoRicky, I am usually a "lurker" on this board, but it is my understanding that BP has not boogied. BP has retained development rights (with BSM) on about 17,000 mineral acres located in north Angelina County. I understand that this area is called the "Lacyville" field. Most of this area is HPB, but there are some "gaps" between production units that are not yet developed (again within this field). This is public knowledge and can be found in BSM's earnings transcripts and JV agreement courthouse filings. Also and a FYI - I have no noticed no BP OGML releases in the Angelina County Deed records (as of last week).

Thanks, ETF - If BP is still "in", it would seem that Aethon will have to go deeper, or develop a down-dip bench of wells, as BP has drilled from Hwy 59 all the way to the EBL of Angelina Co. ? -?

GoRicky, I agree. This my OPINION only, but Aethon will likely start where BP stopped. This is a development effort to the west (toward Lake Kurth) and to the south (north of Huntington). I do think that BP has held the "sweet spot" in this area.


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