XTO Wells- Black Knights, Golden Eagles, and Coyotes Drilling Units

Hello all,

I welcome any information I can get and I thank you in advance for your assistance.  Developing information has been a difficult process and I am not sure I am getting an accurate assessment or a fair deal.  I have a royalty interest in the three wells mentioned in the discussion title.

First, I recieved Division Order's for all three wells in the last four months and checks have started trickling in to varying amounts with each check co-mingling money from multiple wells.  Production started off strong and has dropped off.  I am curious how the wells were completed and if there is any intent to re-work the wells or to utilize fracking technology.  When I made an inquiry with XTO, I was told they do not discuss reservoir and production information with royalty owners (this information is too sensitive).  Does this sound right?  Am I completely off base here?

Second, I just recieved an offer to purchase (via bank draft) my royalty interest from a company called PetroPartners, LLC.  Their offer seems ridicuously low.  I suspect they are offering a low ball offer and/or they know something about the production or future production or future well development plans that I seem unable to find.  Does anyone have any thoughts?

Third, i am still a little confused about the timing of my original lease and the drilling.  Before I signed the lease, I specifically asked if the well was started because I might want to farm out my interest rather than lease my minerals.  I was told that the well was permitted, but had not be started.  Subsequently, I have no learned that the well was actually producing in the same month that I signed the lease.  This leads me to believe that I was lied to, possibly intentionally, with the intent to get me to sign the lease as opposed to participate or farm out my interest.  If I am correct, this seems unethical on the part of the leasing agent (landman), but is this illegal?

And finally, what is the general consensus on the oil and gas play in San Augustine County?  Are people excited or is it starting to fade?

Thank you in advance for any information,

Clint

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Replies to This Discussion

Permalink Reply by dbob on March 4, 2013 at 14:33

Clint

At least a couple of Black Knights wells have been drilled.  I think one has been completed (fractured).  XTO had a rig in that unit for a long period of time recently, so I suspect they will fracture more wells in the future.

I think there is a well in Coyotes.  Jffree may be able to tell you for sure.  

Don't know about Golden Eagles

 

Permalink Reply by Robert E. Anderson on April 19, 2013 at 6:22

Thanks for the infor. It is extremely hard to get info from XTO.  I am used to getting production reports with each check issues and have been trying to get a report sent to me monthly.

 

Permalink Reply by jffree1 on April 19, 2013 at 11:43

I posted everything I knew about the Black Knights unit as of 3-30-13 in this discussion. As of last Friday there were no changes but I will be looking at them again tonight or tomorrow some time.

Permalink Reply by jffree1 on April 19, 2013 at 12:07

I will look up the other units and give you an update this weekend.

Shred that offer.

You are probably held by production. I have spud dates on most of their wells so I will give you that info when I post the other data. The well doesn't have to be producing to HBP unit acreage.

(I am not a lawyer)

Permalink Reply by jffree1 on April 21, 2013 at 15:37

Mr. Brown,

XTO doesn't include a lot of information on their completion reports as to how many frac stages. They usually just give the total producing interval and the amount of sand used... not very informative, at all. The wells you named are all horizontal wells and they were all frac'd. I'm attaching the completion reports.

Your first check on each well was probably for several months of production. The ones after the initial check will be much smaller, in comparison. The wells all decline over time and at some point XTO will probably drill additional wells in these units. It's impossible to divine when they might do that but if the price of gas goes much over $4/mcf I wouldn't be surprised to see activity pick up some.

I will add the production reports on a second post (3 file limit).

Attachments:
Permalink Reply by jffree1 on April 21, 2013 at 15:39

Production reports attached. There have not been any new completions reported on any of the additional Black Knights unit wells.

Attachments:

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