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Comment by Cheerleader on July 9, 2009 at 17:34

Alongview,
Which abstract are your mineral rights in for which you received the seismic payment. [East of SA and N. of Hwy 21] Do you know for which OG the seismic readings were ordered?
Thanks

Comment by jffree1 on July 5, 2009 at 11:35

San Augustine County

Southwestern Energy completed the Timberstar-Mills B Well No. 9H and the Timberstar-Mills Well No. 10H in the Angie Field. The No. 9H hit 12,951 feet 4.9 miles southeast of Aiken. No test data was recorded. The No. 10H hit 7,453 feet six miles north of Attoyac.


This well potentialed 3.392 million cubic feet of gas on a 34/64-inch choke. Production is in the James Lime.


Cabot Oil & Gas completed the Leila Wynn Unit Well No. 1 in the Angie Field to 13,799 feet 6.6 miles northwest of San Augustine. On a 30/64-inch choke the well potentialed 4.885 million cubic feet of gas. Production is in the James Lime.

Comment by ALongview on June 22, 2009 at 10:51

We just received payment a few weeks back on some seismic work just East of SA and North of HWY 21. I think the area they are shooting is pretty big.

Comment by Shelley on June 22, 2009 at 2:14

Hey folks!!!! They have been sesmic teams have been marking places down on 1277... We have one marker in our yard... It starts right off 96 and turns down 1277 ....

Comment by Carter on June 21, 2009 at 4:25

I hit send before I finished typing :-) I was just saying that I've seen some folks that just sent checks in the mail. Nobody is disputing their right to renew. Since last year at this time, I have always steered folks toward reason on this site. A check of my posts from Summer 2008, will show that I urged people to lease into strength and not be greedy, and I called the top to this little bubble almost exactly.

My concern with etx44, was his thinking that he needed to chase them down to make sure they renewed a lease that most definitely was not drafted in his best interest. I did a quick look at some 2006 SWN leases in SA, and saw some $225 kickers and 1/5 royalty. If he is one of those people then I suppose he's ok. Most likely no vertical Pugh on that 2006 lease and SWN also drills James Lime. Many Hunt 2006 leases down there were for 1/6 royalty. He needs to understand that if SWN extends a 2006 lease with a low royalty and he has no vertical Pugh, he has the possibility of getting HBP'd on a shallow well and then being tied to that same crappy lease forever. When times improve and they do go deep, he would lose plenty money with that low royalty. If one thinks about it from that perspective, they certainly would be hoping that SWN did not renew rather that chasing after them.

After looking at the old lease I am pretty sure he got $225 and 1/5, so even if he's tied up forever now, he's still probably got the 1/5.

And OGM, I really enjoy reading your expertise on the site. Thanks.

Comment by Carter on June 21, 2009 at 4:03

OGM, I understand that they have the right to renew the OGL by tendering payment prior to expiration. "Not being found" was my colloquial way of saying that he should not chase them down, and that hounding them to renew was actually not in his best interest. Many times I have seen leases extended without using certified mail. For example, Longbranch or Longtree, the company that was brokering for RosetMistakes happen all the time and that is not rare.

Comment by ogmladvisor on June 21, 2009 at 3:38

Carter:

You do not have the option of "not being found" when it comes to a Lessee paying their option to renew. All they must do is "tender" payment to the last address of record (usually the address on the lease) before the expiration date, and the lease is extended. This is normally done via certified mail so they have proof it was sent. Even if the mail is returned unopened, the lease is properly extended. And in this area, a company like SWN would only let an option period pass if the lease was HBP's, or if they just simply missed it, which happens but is rare.

Thanks

ogmladvisor

Comment by etx44 on June 21, 2009 at 2:01

Carter your right, but they did do right by the deal we made on our lease and to me that makes them a good partner to have.

Besides our bonuses are better than those you stated and getting renewal payments and knowing Southwestern & or Common will have producing wells here by the end of the year makes us feel very lucky.

Southwestern & Common are drilling 100% great wells.

Comment by Carter on June 20, 2009 at 11:26

Sorry, I meant to direct that comment to etx44. What I was trying to tell you was that I'd let it expire if at all possible (the kicker). If you signed a 3&2 in 2006, I'd guess that the kicker to renew was <$150, certainly <$200. I am confused as to how you believe its in your best interest to have your lease renewed for such low money, even in this terrible market. I would have hoped they somehow didn't find me or didn't renew so I could expose it to the open market. And you were trying to hunt SWN down! Even if you had to hold it 6-12 months from now unleased, this certainly would have far outstripped any kicker price you were locked into from 2006! Please correct me if the facts are wrong.

Comment by ALongview on June 20, 2009 at 11:23

ETX44, That is good news. Hope they drill a monster Haynesville well!

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