Replies to This Discussion

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 11, 2025 at 2:31

GEP Haynesville was a joint venture formed by GeoSouthern Energy Corp. and GSO Capital Partners LP in 2015.  GSO was the money partner, GeoSouthern the operating partner.  Private equity GSO, like all PE companies that invest in E&P companies, like to make a relatively short term investment and then look to make an exit with a profit.  This has happened numerous times over the history of the Haynesville Shale.  When GSO sold its Haynesville stake to Southwestern (SWN), GeoSouthern Energy became the operating partner for the South Mansfield Haynesville units acquired by Williams Companies from Chesapeake in a settlement tied to the CHK bankruptcy and lawsuit.  Williams is a huge pipeline company but is not usually an E&P company so it made sense to partner with an experienced Haynesville operator to manage drilling and production of those units.  Without further information such as your section-township-range location, it is impossible to provide an opinion as to whether this may mean new drilling for you.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 11, 2025 at 4:34

Since GeoSouthern could no longer use GEP Haynesville for the operating entity"s name, they did the next best thing.  Thus, GEPH II.

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landownerPermalink Reply by Marsch on March 14, 2025 at 6:52

Yes, please see what you can find out. Many thanks!

lGEP. Hays 14-10-12 H-1 API #17-031-25146-00-00

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 14, 2025 at 7:16

GEPH II completed two HC wells for sections 14&23&26 recently.  Reported complete March 10.  The initial production data looks good but there are few reports in the database currently.  Those will come along soon.  Since this is such a recent completion, it could be six or so months before any of the lessors in those three sections begin to receive royalty revenue.  Congratulations on your new wells.  This however could mean it will be a while before anymore wells are drilled.

Use these links to view the well files.

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

https://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo...

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landownerPermalink Reply by Marsch on March 18, 2025 at 3:47

Thank you so very much-we will wait it out.
Your input is always appreciated.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on March 18, 2025 at 3:50

You're welcome.  Good luck on your wells.

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landownerPermalink Reply by Marsch on August 9, 2026 at 0:17

Now JERA has bought out the wells I have interest in and my royalty payments have dwindled to almost nothing since March.  Could you please explain what their plan is- can I hope for an improvement in royalties in the future?  

Thanks so much!

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 9, 2026 at 1:52

I doubt that the change in ownership is the reason for the decline.  Have you compared the monthly production volumes over past revenue statements.  JERA has been running only one rig and it was been on the same pad for seven wells but it should be finished soon if not already.  When asking a specific question such as yours it is helpful to supply some additional information.  For your question, it would helpful to know the section-township-range  where you own minerals.

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landownerPermalink Reply by Marsch on August 9, 2026 at 4:52

Yes, sorry I did not give enough information.  It seemed strange that the payments have dwindled so much- wonder why they are not producing and selling.  Thanks. The wells are:

• Hays 14-10-12 H
• Rankin 14-23-26 HC 001-Alt
• Rankin 14-23-26 HC 002-Alt
• Salamander 26-23-14HC-ALT

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 9, 2026 at 6:11

I do not see any obvious problem with the unit's monthly volumes reported to the state.  The reason for the reduced royalty must be something else.

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landownerPermalink Reply by Marsch on August 9, 2026 at 7:53

• After I looked at the statements back into last year, I see that GEP produced sometimes twice what JERA is producing now and the price has gone down since last year.  
• So less production and lower prices must explain it.  I don't know what demand is right now-but hope it will increase.
• Thank you very much for checking on this.   

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on August 9, 2026 at 9:21

You're welcome.  The newest two wells of your four producing started pay in Feb. of 2025 and are now 16 months old.  When they first started production the unit volume reported for all four of your wells was 689,480 mcf.  The June of this year reported volume was 220,839 so a 68% drop in line with the decline rate for Haynesville Shale wells.  The price from Feb. '25 to June '26 dropped about 15%.  Together they would explain your lower royalty payment.

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