We currently have 5 oil and gas wells operating in our section. Four are tied into a pipeline as of the beginning of 2018. We have begun receiving royalties for this from the operator. Yesterday we received a letter along division orders from Shell Western (not the operator) requesting us to sign the orders to start receiving payments from them for the production of these wells. I didn't know they even shared this lease so this is the first we have heard from them. We live in the Keithville area. I would like to know is anyone else has received these documents. I am always reluctant to sign anything without looking into it. I would appreciate any input into this.
Shell has begun paying on their behalf to royalty owners in a number of Exco units.
EXCO and British Gas (BG) entered into a joint development agreement for Haynesville assets in LA and E TX in May 2015. Therefore BG acquired a 50% interest in the EXCO wells and leases. BG was in turn acquired by Royal Dutch Shell (RDS) in February, 2016. Since EXCO is near bankrupt, Shell has taken over paying royalty on their 50% ownership interest.
Exco is not near bankrupt. They are in bankruptcy.
Skip - Yep, I was also contacted by BG and BP about some possible leases as well where EXCO had held leases, but no wells were drilled.
Going to be interesting to see where all of this shakes out and if they increase production as well.
I want to thank everyone for their input. It does give me more information then what I had before.
You're welcome, KMD. Now in return, there is something you can do for us. Talk up GHS and recruit some new members that will help with "on the ground" intelligence in their area and participate in discussions. That helps GHS improve the roll it plays in assisting land/mineral owners.