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Permalink Reply by Paul Butler on January 16, 2016 at 4:48

I don't know skip.

Remember the words of the Boxing Promoter/Christian (never seen in public without a Cross around his neck), Brother Don King.

Brother Don said: cast your bread upon the water and you'll end up with soggy bread!

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Permalink Reply by Skip Peel - Mineral Consultant on January 16, 2016 at 4:55

Mr. King knew how to promote boxing, I'm not sure I would depend on his advise for an O&G lease.  As long as you know that there is no difference between being leased to Vine or GEPH in their existing 50/50 shared units, you can negotiate accordingly.  I would be surprised if they would get in a bidding war for your lease.  More likely the offer would be the same from both.  And neither would care which company got your lease.

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Permalink Reply by Paul Butler on January 16, 2016 at 5:15

Ooooooohhhhh no.

I think they got to Mr. Skip!

What do I mean by got to?  Bought, paid for and in the bag!

Just kidding.  You're pretty much the ultimate insider/historian in these parts and just an all around sharp dude.  I read and love your stuff.

So, to the extent that having a highly informed opinion counts, you'll get it done.

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Permalink Reply by Skip Peel - Mineral Consultant on January 16, 2016 at 5:29

I think "the industry" would tend to disagree with your assessment but whatever floats your boat.  The good news for mineral owners or lessors in former SWEPI/ECA units it that Vine is running 4 rigs currently (1-Desoto,3-Red River) and GEPH may very well do the same soon.  Together they would represent the most active HA operators.  Currently CHK has the most rigs running - 5.  There are only 2 other rigs drilling HA - EXCO and J-W. Getting one or more of the much more efficient new HA 3.0 HC wells makes up, to some small extent, for the depressed price of natural gas. 

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Permalink Reply by Steve P on January 16, 2016 at 9:23

i have a lease that went to encanalSWEPI about 5 years ago, has a HA well on it, now owned by Vine and GEPH. i don't know any of the people involved in any of the companies or various legal disputes. i read some but not all of the attached decisions/orders. my first observation is that JB should have had a signed contract. JB was lucky to collect on the sales. Just business.

on the Anadarko litigation, clearly Anadarko was entitled to the injunction to protect its data. Likewise, it clearly was not entitled to its claims against the engineer, and there seemed almost no evidence against the land department manager. those claims were punitive in nature - a company with resources aggressively pursuing former employees to make them an example.

i'm not sure which company i would avoid the most - GEPH or Anadarko. neither look good in that litigation!

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Permalink Reply by Paul Butler on January 18, 2016 at 5:21

GeoSouthern in TX during last 25 months.  Note the hyper links for completion information.

No one would confuse them with King Kong.

They made a 7 billion dollar deal with Devon and not much out else.  I'll admit, that's a nice pay out for 3rd and 4th rate land work.

I'm sure Devon would like the 7B right now.  Many think Devon is on death's door step and that the GeoSouthern deal has much to do with it.

Things will shake out this year.  It's a Brave New World!

Attachments:

• TX_GeoS_1_1_2014_thru_1_18_2016.xlsx, 57 KB

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Permalink Reply by Paul Butler on January 20, 2016 at 6:25

The conflagration for Devon accelerates:  http://quotes.wsj.com/DVN

Apparently they have had the GeoSouthern folks lecturing at OU's law school.  They didn't have to burn much column space on Molleston's credentials.  Note the names for future reference:

3.26.14

Energy Professionals to Visit and Speak at OU Law

Meg Molleston, the Vice-President of GeoSouthern Energy Corporation, will be speaking at noon on April 8th in classroom 2. Ms. Molleston has vast experience and knowledge of the oil and gas industry and will provide an excellent opportunity for students to learn more about the industry that fuels the nation.

Accompanying Ms. Molleston will be Deborah Hubbs and Andrew Calder. Deborah Hubbs is a graduate of OU Law who serves as the General Counsel and head of business development for GeoSouthern Energy. Andrew Calder is an accomplished partner at Simpson Thacher who specializes in mergers and acquisitions in the energy sector. Mr. Calder recently assisted GeoSouthern in their $6 billion Eagle Ford asset sale to Devon Energy.

GeoSouthern Energy is a privately held exploration and production company based in The Woodlands, Texas

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Permalink Reply by Skip Peel - Mineral Consultant on January 20, 2016 at 8:24

Paul, for those who wish to lease to a company other than GEPH, they can contact Vine O&G.  As I have mentioned previously no one should expect the two companies to compete for their lease since they are 50/50 partners in the majority of their operated units.  If a mineral owner should wish not to lease with GEPH and a Vine lease is not an option, they can decide to be a UMI and rely upon the mineral code to provide basic protections for their interests.  At this point in time it is highly unlikely that there are any options beyond those mentioned.  Although you have made your point, continually bashing GeoSouthern/GEPH has no substantive benefit for GHS members. 

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Permalink Reply by Paul Butler on January 20, 2016 at 9:21

HUA.

I'm  not a bully and I was hoping I would not come off as one.

Please note that I've actually said very little. 

Fewer than one percent of the words I've posted have been mine.

The public record spoke.

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Permalink Reply by Skip Peel - Mineral Consultant on January 20, 2016 at 9:58

Thanks, Paul.  The public record items you have posted are sufficient to express your concerns.  Repetition does not serve any further purpose.

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Permalink Reply by RONNY on January 20, 2016 at 13:58

Can anyone share the township and range and sections Vine and GeoSouthern are taking leases?  thanks

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Permalink Reply by lee on January 21, 2016 at 4:20

Paul you have quite the wit, but stated as a jeopardy answer, "Who is Paul Nathaniel Nowak, disgruntled landman Chase Energy"

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