Replies to This Discussion

Permalink Reply by Jaybird on November 5, 2008 at 13:42

That's the first I have heard of that company. I googled them and atleast they have a nice website.

Sorry, I don't know anything about them.

Jaybird

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Permalink Reply by Grice on November 5, 2008 at 14:01

This is just a preliminary, but your section was unitized with 12 neighboring section in 2007. There are several (producing) wells within those 13 sections. The operator for those wells is FOSSIL OPERATING (same phone number as Tauren). If I can find time, I will try to gather more information for you.

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Permalink Reply by Skip Peel - Mineral Consultant on November 5, 2008 at 14:06

I see leases to Tauren on a regular basis. I have never seen anything to indicate that they are an exploration and production company. I had assumed that they were a land company involved in speculative lease acquisition. Grice's comment about the phone number may indicate that they are a land company tied to FOSSIL OPERATING although the Tauren leases that I have reviewed all ended up in Chesapeake drilling units.

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Permalink Reply by Boss Hogg on November 5, 2008 at 14:25

Thanks Grice, I will be grateful for the information. The section leader in my area has been in negotiations with Chesapeake with little results. I am trying to understand my options when my lease expires next August. Thanks

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Permalink Reply by Grice on November 5, 2008 at 14:45

I did a little more search and found that section 6 was not included in the order. However, many of the surrounding sections are unitized by Fossil, so a phone call to them may be the best source for an answer. According to the plots I have seen, section 6 is noted as CV RA SUF. Fossil has unitized CV RA SUG through CV RA SUI and CV RA SUR through CV RA SUDD. Maybe they can explain why they are working around your section, and leaving you out of the play. Also, at a distance, Chesapeake has unitized CV RA SUJ through CV RA SUO. I hope this helps.

Tauren Exploration, Inc.
9870 Plano Rd
Dallas
TX
75238
USA
972 681-8047

FOSSIL OPERATING, INC.
9870 PLANO ROAD
DALLAS, TX 75238-0000
RICHARD SEPULVADO
(972)681-8047 OFFICE
(972)681-9687 FAX-OFFICE

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Permalink Reply by Spring Branch,mineral owner on November 5, 2008 at 17:11

Tauren Exploration , Inc acquired leases in southwest Caddo and northern DeSoto parishes several years back. It is connected with an operating company which has been responsible for the actual drilling of the wells in Tauren's sections and that company is Fossil Operating Inc. Both Fossil and Tauren are non-public companies but are themselves connected with a tiny publicly traded company which is listed on the American Stock Exchange named Cubic Energy Inc. Calvin A Wallen seems to be a principal in each of the three companies.
Fossil/Tauren/Cubic has drilled a number of very mediocre Cotton Valley wells which cumulatively don't make enough gas to worry about. This seems to be the one company which stands out among the companies operating in the Haynesville Shale as the one you really don't want drilling wells for you or in their case NOT drilling wells for you. You see best I can tell, they got no $$$$$. At one time they borrowed about $25 million from Wells Fargo, but I'm sure they've spent most or all of that $$$ drilling their mediocre CV wells and their apparently equally mediocre vertical Haynesville wells. If you have acres in their sections, hopefully one day you will be able to get out of the trap! I say to you.......Good Luck!

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Permalink Reply by Kenny on November 6, 2008 at 3:36

Cubic has more money and intrest in Haynesville shale than you may think. Tauren is being backed by Cubic which is a MAJOR natural Gas Company---These guys are quietly going along and drilling up these lease's and producing Cotton Valley gas to lock up the lease--If they are not swallowed up by the likes of BP, the plan is to come back and hit the shale--these guys are sitting in the heart of this shale

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Permalink Reply by Kenny on November 6, 2008 at 3:32

I leased to Tauren and if you go to CUBIC ENERGY, thats who's handeling mine---Tauren is a sub of Cubic

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Permalink Reply by Spring Branch,mineral owner on November 6, 2008 at 4:22

I guess calling Cubic Energy a MAJOR natural gas company depends on how you define the term MAJOR. The stock closed yesterday on the AMEX @ $1.88 0r $1.89 per share and has a total market cap of $114 million. As compared to Chesapeake, Petrohawk, El Paso, Goodrich, Exco, Comstock, Shell, Encana, XTO, Devon, EOG, or any of the other publicly traded companies in the play, Cubic is minute almost to the extent of being non-existent, and I am, sadly to say, a stockholder. The best hope for leaseholders with Tauren would clearly be for Tauren,Fossil, Cubic, and Wells Fargo ( who I'm sure has mortgages on the leases or production as collateral for the loan or loans) to sell out to BP or Shell/Encana, or somebody. There is no way in hell that Cubic/Fossil/Tauren is going to come up with the $7-9 million per well to drill a horizontal Haynesville in each of their sections unless they sell out or form a major partnership with one of the above mentioned names and relinquish operatorship! Lest we forget, we are in somewhat of a credit crises right now. About the only folks that can borrow money right now are those that don't need it. As an aside, I'd be interested to know how many Cubic/Fossil/Tauren royalty owners are actually receiving a royalty check each month.

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Permalink Reply by The_Baron on November 6, 2008 at 4:33

My information indicates Cubic is laden with debt and short on cash. They have drilled may bad wells and completed them just to try to hold these sections. From the leases I have seen, the majority are past the primary term and would expire if the can't HBP.

Fossil is operating these wells for Cubic, Tauren is the company being used to handle the leaseing, but they are all controlled by Calvin Wallen out of Plano, TX. They have been slow to complete many of there wells, in some cases taking months and months.

They also have been slow to report to the State, but the data that has been reported is for the most part, not very good.

IMHO, they are trying to hold onto their leaseholds, while looking for a buyer. They are smack dab in the middle of chesapeakes sweet spot. The market may put them in a bad place though, as some of these wells just don't look like they will make it.

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Permalink Reply by Grice on November 6, 2008 at 4:37

I agree with your evaluation, but also wish to impose my own assessment. While they possibly could benefit from selling out to a more lucrative company, they also are positioned to gain from not selling out. The work done by those "major" companies, will increase the value of the leashold that Tauren have. This will allow them to leverage their leaseholds, allowing them to obtain the resources to strengthen their company financial future. From a business perspective, I think they would be better suited to straddle the bigger players.

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Permalink Reply by The_Baron on November 6, 2008 at 6:05

I agree. Also a good alternative.

However, I believe that they are not company that will be active in exploring the shale. If they do I doubt they will do anything but a few vert wells.

It will be interesting to see if they can hold on to their leaseholds long enough with the bad wells they have drilled lately.

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