SWN sold some of the Indigo wells to Diversified Gas & Oil.  It appears that they are the older vertical wells.

If you get an ACH enrollment form, give them a call and verify your information before you send it in.  The letter they sent me had the wrong new owner number.

Views: 468

Reply to This

Replies to This Discussion

Indigo sold their legacy Cotton Valley wells and leasehold as part of a total liquidation strategy.  First, their midstream assets.  Secondly, their Cotton Valley assets.  And lastly, their Haynesville/Bossier assets to SWN.

Affiliated Houston firms Momentum Midstream and Indigo Natural Resources are selling their jointly owned pipeline assets in the Haynesville shale for $2.65 billion to Detroit-based DTE Midstream. Oct 18, 2019

 

Diversified Gas & Oil has conditionally agreed to acquire certain upstream assets and associated facilities in the Cotton Valley, US from Indigo Minerals for $135m. The acquisition includes producing areas located within the Cotton Valley/Haynesville producing area of northwest Louisiana and east Texas.  April 30, 2021

-Southwestern Energy Company (NYSE: SWN) today announced that it has closed the acquisition of Indigo Natural Resources. “We are excited to incorporate Indigo's assets into SWN's premier US natural gas portfolio.  Sep 1, 2021

The ACH Authorization form raises a huge red flag in the first sentence:

"I/we the undersigned hereby authorize Diversified Oil and Gas Corporation to initiate credit entries and to initiate, if necessary, debit entries and setoffs or adjustments for any erroneous credit entries to the account indicated below at the depository financial institution and to credit and/or debit the same to such account."

I've never signed an ACH agreement that gave the payor the right to debit my checking account. And I'm not starting now. Paper checks still work fine, last I've heard.

Diversified Oil and Gas Corporation may be attempting to pave the way for adjustments to Indigo pay decks that used less than the most accurate survey methods.  Diversified O&G Corp acquired older, vertical wells that may or may not have had the same problem that exists with many Haynesville Shale pay decks.  This would be a pretty extreme means to make payment corrections and should certainly raise red flags with royalty interests. 

Members may recall when we had a number of discussions where companies were suspending royalty payments due to claimed over payments in some cases going back years to first production.  Although it is not possible to corroborate with publicly available data, it may be that legal departments were concerned that the move to Cross Unit Laterals would lead to discovery of and litigation over discrepancies in title due diligence caused by inaccurate unit surveys.  Members may also recall that back in 2018 there were 850 delinquent unit surveys that were not submitted to the state and therefor not available on SONRIS.

RSS

© 2021   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service