Replies to This Discussion

Permalink Reply by Dry Hole on October 13, 2011 at 6:24

The clock is ticking -- How much time is left on those leases ? -- I believe Trinity Co. is well positioned for future activity --- not sure how long it will be but someone has to stop wishing for drilling and start drilling or their prospects will be expired ----- just  my cold thoughts --- maybe someone has a plan for a multi-rig drilling program --- lets hope so

Permalink Reply by shale in europe on October 13, 2011 at 21:53

From what we now understand it may have been initiated by a company called TEXKON, they have operator rights and may have done initial deals (mr. Tom E Knowlton, mr Charles Meeks and mr. Donald Goddard).

Is TEXKON well known / are they operating in the region / do they plan any drilling campaign??

Permalink Reply by jffree1 on October 14, 2011 at 3:48

I think it must be "Tekxon" which is a California corp. = Tekxon Onshore Oil & Gas, LLC and Tekxon Onshore Operating Company, LLC.

They are both registered with Tx. Secretary of State as a Foreign (Delaware) LLC.  

Knowton (Long Beach, Ca.) is shown as President & Director and Goddard (Baton Rouge Geologist) is VP and Director.  Their agent in Texas is CT Corporation System, 350 N. St. Paul Street, Suite 2900, Dallas, Tx. 75201-4234.  

They have been registered in Texas since Oct. 5, 2009.  They do not appear on RRC as an operator and there are no wells being operated by "Tekxon" but they could have an affiliation with a registered operator. 

Permalink Reply by shale in europe on October 14, 2011 at 4:14

which operators are active / will be active shortly in Trinity County?

It doesn't seem there is much activity with Tekxon so far.

Permalink Reply by jffree1 on October 14, 2011 at 4:41

Basa Resources and Leo Energy are the only  operators to have filed deep well permits since Jan. 1, 2010.

Permalink Reply by Dry Hole on December 26, 2011 at 16:55

Europe,  have your people told you any news yet on your MONUMENT PROSPECT ?  ----- Some of those leases will start expiring this next summer --------- hope they have a plan

Permalink Reply by shale in europe on December 26, 2011 at 22:18

ajl is discussed on a forum on hotcopper.com.au  You will be surprised that shareholders have been given a upbeat plan on how Texkon is working on getting the finance for drilling on the leases. Not a word of leases running out! I hope indeed there is a plan.

Is there a large part of leases running out?

This text below came from the recent report on a rights issue:

Monument Prospect

If TEKXON Onshore Oil & Gas, LLC (TEKXON) is unable

to obtain additional funding, it may not be able to take the

required actions to execute its development and exit

strategies, either in part or at all.

If TEKXON is unable to recover hydrocarbons from its

interest areas at all due to geological factors or technical

infeasibility, or if it is able to recover hydrocarbons only at

a cost which makes production commercially unviable,

this would have a material adverse effect on the value of

Lucas’ indirect contractual interest in 10% of a net profit

interest earned by Thomas Knowlton (TK).

As the Company is reliant on the management of

TEKXON as operator of the oil and gas leasehold

interests, any financial or managerial failure by TEKXON

may have a material impact on the value of Lucas’

indirect contractual interest in 10% of a net profit interest

earned by TK.

Another piece of text from the rights issue announcement:

Monument Prospect

Additional Funding

The Company understands that TEKXON Onshore Oil & Gas, LLC, (TEKXON)

is currently attempting to raise further funding to develop its oil and gas

leasehold interests in Monument Prospect, located in Trinity County, Texas. If

TEKXON is unable to obtain additional funding, it may not be able to take the

required actions to execute its development and exit strategies either in part or

at all.

Inability to recover hydrocarbons

TEKXON’s ability to develop successfully its interests depends not only upon

obtaining the necessary funding for development, and the presence of

significant hydrocarbon resources in its leasehold interest areas, but also on the

ability of TEKXON to recover such resources in a commercially viable manner.

There can be no guarantee that TEKXON will be able to recover any

hydrocarbons in its interest areas or that it will be able to do so at a cost that

makes production commercially feasible.

If TEKXON is unable to recover hydrocarbons from its interest areas at all due

to geological factors or technical infeasibility, or if it is able to recover

hydrocarbons only at a cost which makes production commercially unviable,

this may have a material adverse effect on Lucas’ Net Profit Interest.

Reliance on operator management

The Company is reliant on the management of TEKXON as operator of the oil

and gas leasehold interests. Any financial or managerial failure by TEKXON

will have a material adverse effect on the value of Lucas’ Net Profit Interest.

Permalink Reply by Dry Hole on December 27, 2011 at 3:48

Europe,

     Not sure what % of leases will be expiring or if they have renewal options

  Most of the leases were picked up for around $300/ac for a 3 yr lease ---- (2 yr extension for more $ possible)

   Hear that (TK) is slow pay or no pay on some of his contract brokers etc.

   It would take a whole fleet of drilling rigs to make a dent in that much acreage and I do not think they are available. ----- Time is running out------ Hope everything works out

Permalink Reply by jffree1 on December 27, 2011 at 3:33

DH, I found this little bit about the Monument leases on the website of a law firm:

"Counsel to acquirer of more than 400 federal and private oil & gas leases covering more than 60,000 net acres in the Monument Prospect, Trinity County, Texas."

http://www.milbank.com/attorneys/david-a-lamb.html

And this from "Lucas", an Australian Co.:

Monument Prospect (East Texas)

Background
Under the terms of the Amended and Restated Participation Agreement between Allan Campbell and Thomas E. Knowlton dated 24 August 2009 and a Deed of Acknowledgement between Allan Campbell and Lucas dated 30 September 2009, Lucas has an indirect contractual interest in 10% of a net profit interest earned by Thomas Knowlton from net production proceeds and net sales proceeds generated in respect of oil and gas leasehold interests in lands within an area of mutual interest, the Monument Prospect located in Trinity County, Texas (Net Profit Interest).  The Net Profit Interest does not constitute a property interest of Lucas.
 
The area of mutual interest covers an area approximately 27 miles long and 7 miles wide which contains approximately 120,000 gross acres.  There are approximately 62,560 leased net acres within the area of mutual interest. The Company has been informed by Mr Knowlton that he has transferred the approximately 62,560 leasehold net acres in the area of mutual interest to an affiliate of Mr Knowlton, TEKXON Onshore Oil & Gas, LLC (TEKXON) for non-cash consideration on an arm’s length basis.  In the event that the non-cash consideration is monetised, 10% of that will form part of the Net Profit Interest of Lucas.  However, the Company has not been provided with information of the nature or value of the non-cash interest paid by TEKXON to Mr Knowlton or when it is likely to be monetised. The Company understands that TEKXON is in the process of raising final funding to conduct a drilling program in the area of mutual interest. The Company has been informed that a permit to drill the first well, the Pyle Gas Unit #1 well, has been awarded to TEXKXON.

http://www.lucas.com.au/investments/monument-prospect

Permalink Reply by Dry Hole on December 27, 2011 at 4:06

Thanks Jffree,

 At least there are some Pyle's in and around the Apple Springs area  ---- Was starting to worry that you might need to to be an attorney to post about this one.

Permalink Reply by dbob on December 27, 2011 at 4:18

Maybe I'm being dense this morning, but I don't show a "Pyle Gas Unit #1" or anything similar permit with the RRC.  Any ideas?

Permalink Reply by Dry Hole on December 27, 2011 at 4:55

dbob,

 Probably have not permitted it yet ------ Found out this morning  that they originally intended to drill #1 near Helmic but have moved it SE a couple of Miles out to the paved FM road.

 

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