Most of Panola County is held by production... for the last 60 years. There are an amazing number of ancient leases with 1/8th royalty, and no pugh clauses. Vertical pugh clauses are very rare, except in recent (last ten years?) leases.
I've heard rumors of a large oil find... but the area where it's located has had continuous production since the 40's/50's.
What do you 'know'? Hey, a rumor is better than a sharp stick in the eye!
I have some relatives who work on the production side of the gas industry, and they've told me there's a large oil play, discovered on some Haynesville/Bossier deep drills. [In Panola County, off of Hwy. 124] For decades, no one thought there'd be 'anything' below the Cotton Valley... and a couple thousand feet deeper is a 'giant' oil field. Cousins say their sources say it is a giant.
The logic, imho, is rotten.... if there was a massive oil field, why hide it? The area is completely leased out. No other company can snipe unleased tracts. Either Devon, EOG, etc., already own the producing units, and they're HBP. With the price of oil soaring, why not tap 'that' field and go ahead and do the Haynesville/Bossier, and only produce the oil.
The old Placid leases say leases expire at various times if no production. Some of the leases seem to have production on 1/4 of the acres in the units...If a well is only producing on 1/4 of the acres wouldn't that mean the leases expired ?
And none of the leases cover deep wells..so again does that mean there no lease in effect on those old 1950's Placid leases? When Placid went under the leases were divided up to several producers..
I'm there several days a week, and I never ever hear anyone mentioning what they're working on.... talk about sports, family, that wacky ol uncle Obama, but not what 'play' they're working on.... I believe it's an unwritten landman rule... you don't talk about your particulars... unless you know the other landman "real" good.
I see some of the same folks working there all the time. I know one crew that spent almost a year, working out current ownership of units that had been in production since the 50's.
Panola County, for the most part, is leased out and producing, and HBP. There are isolated tracts un-leased. My family owns enough un-leased acreage to make a unit.... within a half mile of a massive XTO drilling program... and I can't get anyone interested in leasing. Contacted a landman I know last week (there company has hundreds of wells in Panola County)... offered to just give them the lease, if they'd consider drilling. Nope, not interested, regardless of where it's located.