Replies to This Discussion

Permalink Reply by Bill R on March 21, 2010 at 17:13

Austin...

Yeah, that is what I thought when I saw the increasing amounts... to spend money like that 'someone' must know something the rest of us do not! If they were asking for leases, it would be one thing, but these offers are to buy all of our interest outright. Does not really matter, as under the terms of the of my Great Grandfathers will, the family can only sell to family.

As for part 2 - The first company's were Montego Minerals, Longhorn Associates, Texas Conservation Trust, TexasEnergy.com, with the final offers from Austin Consolidated Energy Holdings and AREF Energy Holding Co.

I actually doubted that some of these were even real... but they all check out as existing on the web. When I saw your name, I was wondering for a minute if you were checking up on yourself (ACEH isn't your company - right?) - LOL

Have you heard (or dealt) with any of these?

Anyway, thank you for your input... sits my mind more at ease to know your thoughts on the offer(s) matched my mindset on it.

Permalink Reply by DJG on March 21, 2010 at 19:16

1) I would say that your Great Grandfather was a damn smart guy with that precondition policy in his will to assure that your minerals stay within the family.

2) I fall into the camp of believing that this upswing in offers to buy those "Oil Only" mineral rights could foreshadow some rather interesting news for this region of the play. It just doesn't make any sense to me that those offers would increase so rapidly without wondering what inside information is in the hands of those making the offers????

3) Did you catch the E.Tx Drilling report news this morning about Cabot's Forbis OU A 1 well?:

The Forbis OU A Well No. 1 hit 13,394 feet and flowed with 613 barrels of crude on a 48/64-inch choke. Production is in the Pettet.

Interesting thing about this report is that it is stating that the crude is producing at 13,394' but it is in the Pettet formation. Well, if it actually is at 13,394' - then the depths are not really matching up properly from other well logs that I am looking at. I need to look at other wells in the area of the Forbis, however Cabot's Sustainable Forrest Well 1 is one of their better producing Angie/Pettet Oil Wells in the past few years (51,600 BBL in the past year / Peak production May '09 at 14,804/BBL/Month = 493.446/BBL/Day).

The interesting thing about that Sustainable Forrest Well is that the from the completion report the Top of Pay is at 7,324' - a full 6,000' above what they are reporting as "Pettet" for this new Forbis Well.

The question will be whether that 13,394' is actually the Pay Zone for the well or the measured depth including the horizontal.

Permalink Reply by Bill R on March 23, 2010 at 14:51

Yeah... sounds promising with Forbis well...and the 'promise' of something bigger to come...
I wonder how long these wells will produce around the current rate?
Thanks for the comment about Great Grandpa too... I did not ever meet him, but he sounded like he had a very sound mind in his future outlook for the family... He was actually my Great-Great Grandpa (W.N.Whitton) but his understanding of the value of maintaining the mineral rights seems to have paid off long after his passing.

Permalink Reply by adubu on March 26, 2010 at 16:07

D. Garr -these are horizontal well vertical depth is 7,324' then add H lateral of 6000' gets you total of 13,394'

Permalink Reply by Lorissa Gail on March 22, 2010 at 2:49

Bill R,

The Whitton has now been declared the Whitton Gas Unit..unit declaration filed 3-3-10 in courthouse records! (and rrc)

I too keep getting offers to buy my land, minerals , royalties, even partial royalties...and anything else I might be willing to part with! These have been coming in for a coulple of years now, before I even heard of Haynesville Shale"! Someone knew something!

Permalink Reply by Bill R on March 23, 2010 at 14:52

Thanks for the input... I saw the change in name at RRCT... now I guess we play the wait-n-see game until Devon discloses the output from it.

Permalink Reply by Austin Eudaly on March 22, 2010 at 6:53

Haha, no that's not our group. I actually have never heard of any of those groups, save Longhorn, whom I believe they are a land crew and are likely fronting for a fund or something of that sort. I will take a look into these groups and see if I know of any of the money behind them.

Thanks for the info Bill. Best of luck with your well. Things look like they are getting more interesting in Shelby County by the day.

Austin

Permalink Reply by Bill R on March 23, 2010 at 15:08

Austin -
I didn't think it was, but the name just caught my eye and gave me laugh! I myself had never heard of any of them, but I ran the names up in Google... the one that surprised me was AREF Energy Holding, it appears as a major player out of Kuwait, formed in September 2007 as a subsidiary of AREF Investment Group. AREF works in the states as DeWitt County of Texas, USA.
Some of the others have short little squibs either as a web site or in the news in Eastern and Southern Texas. I look forward to hearing what you find out at your end. Additional news, my Aunt has gotten letters from three more companies. Keeps me wondering wondering why the sudden rush after all of the years we have owned these mineral rights.

Permalink Reply by George Wright on March 25, 2010 at 6:37

We do not wish to sell our mineral rights, but have not received any good lease offers.

One of my brothers (% owner of our property) has just become stricken with cancer, can't work, mounting medical bills, home payments, etc.

We are helping as can, but it might be in his/our best interest to sell his apx. 16 acres of mineral rights if there were indeed $10,000.00 per acre offers.

Please advise, direct us to legitimate companies.

Thank you,
George Wright
210 748 4693
geopar@gvtc.com

Permalink Reply by Bill R on March 26, 2010 at 15:22

George -

I do not know how legitimate these companies that have been contacting my family are, but we have now had eight companies showing interest in family holdings and offering cash, especially for 110 acres located A-251, the A.H. Gates survey where Devons' Whitton 1H gas well is located. They would like to purchase the 'Oil' mineral rights on a gas well?!?!?

Permalink Reply by Austin Eudaly on April 1, 2010 at 2:44

Bill,

Sorry I have been a little mia, was out of town, then at a conference the past few days.

Did the AREF letter include a number and/or email to contact them at? I am having trouble believing they are real after looking further into it. I would like to contact them to see what these guys are up to.

Thanks,

Austin

Permalink Reply by Bill R on April 1, 2010 at 16:22

Austin,

I am so totally confused... we now have about twelve+ companies asking to purchase all of our holdings and mineral rights, but half do not seem to exist or exist as something other than what they say they are.

The link provided didn't work, but a online search show AREF Energy Holding Company as the following address, which 'sort of' matches the address on the Email:

AREF Energy Holding Location:
Arraya Tower 25th floor - Abdul Aziz Sager Street -Area 6
Sharq
P.O.Box : 21909 Safat , 13080 Kuwait
Operator : (+965) 22979600
Fax : (+965) 22477580

Austin Consolidated Energy Holdings comes up to a webpage flagged, AUSTIN CONSOLIDATED HOLDINGS, INC. and links to http://www.austintetra.com, which is a outsourced supplier and customer data management service(?)

Texas Conservation Trust comes up as Texas Land Trust Council, a non-profit organization promote and sustain the conservation efforts of Texas land trusts (per their website mission statement.

The others appear to be real (I guess), not that it matters, but I now have in hand from Montego Minerals and Longhorn Associates multiple letters asking for various tracts and/or mineral rights. TexasEnergy.com just states that they wish to buy all rights to our Whitton 1H well and other mineral rights in Shelby county.

And I still have not heard what (if anything) was found at Whitton 1H...
If it was not for the fun I have reading, chatting, and interacting with everyone here at GoHaynesvilleShale, would probably be beyond irritating. As always, I thank those who have given insight (and expertise) to helping understand all of this.

Our good news is the family just signed off on two more Division Orders for well(s) down in San Augustine county. Not a lot of monies yet, but it is fun to see Royalty checks coming in every month now.