Replies to This Discussion

Permalink Reply by Gale on February 6, 2016 at 16:46

Thanks Kathy,

Our Chinn Wells have been sold to a company out of Ft Worth named Trivium. I imagine what you have stated is how it will all play out.
Honestly I don't think Samson is even paying for what they are producing so it likely will be better for us any way.

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Permalink Reply by bob blakey on February 7, 2016 at 11:16

Hi Kathy,  haven't talked to you in a long time.  I'm going by memory but GMX sold the Cotton Valley wells to ETPC prior to the bankruptcy.  GMX kept the horizontal wells but didn't drill any more.  They got in trouble because of moving into the Balkin area and being "late to the party" had to overspend either by buying new mineral interests or buying into some joint productions.

the bankruptcy  court auctioned off the remaining Tx properties and the Assets that were in the Balkin.  Got no bidders other than the DIP whose bid was the amount of money owed to them by GMX.  As far as I can tell, the new company kept all of GMX management and continued drilling in the Balkin.  Nothing changed except the shareholders lost all of the stock that they owned.  Now , the new company, Thunderbird, hasn't drilled any wells for the last 2 years..

I think I'm off subject here since this started out as a Sampson bankruptcy.  I missed this one, but have some Sabine and still waiting to see how that is going. 

Bob

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Permalink Reply by Gale on February 7, 2016 at 12:40

Bob,

Your reply was not to me but I appreciate your post. Hearing what other companies have done or do is always a way to learn. The Samson thing should/ will be interesting to watch for sure. Can you tell me how you found out what the bids were on the GMX wells you were referring to? I would be interested to watch what the wells sell for or if they don't sell.
Thanks so much for the info!

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Permalink Reply by bob blakey on February 8, 2016 at 12:27

Gale,

The debtors, GMX, hired a "claims and noticing agent" and we were given a website for copies of everything to do with the bankruptcy. Many of these were very complicated and above my knowledge level.  My main interest was in the beginning GMX asked and the court agreed to allow them to continue operating and pay the royalties and all other expenses to continue the business.  The DIP advanced an additional $50. million for this purpose.

The detail, also included monthly disbursements for everthing including checks to each royalty owner and all the way down to how the petty cash was spent.

Huge amounts of legal and accounting fees were expended.

In the end, when the assets were auctioned, no one bid above the amount owed to the DIP so they got everything and immediately set up a new company Thunderbird Resources LP to take over the assets of GMX.

Hope this helps.

Bob

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Permalink Reply by dbob on February 7, 2016 at 3:41

The list of wells can be found here:

http://docket_pdfs.gcg.net/smn/15-11934/621_11934.pdf

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Permalink Reply by JHH on February 7, 2016 at 14:32

Thanks for the pdf.  What does it mean if your wells aren't listed? 

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Permalink Reply by Gale on February 7, 2016 at 15:43

I assume it means your wells are not getting sold! And there is a post that said the Benton Feild has a offer already and will be sold private.

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Permalink Reply by Krkyoldhag on February 8, 2016 at 3:35

My unit with Samson was not listed.  This is an old lease from Placid from the 1950's and it was being held by production.. Since I have not had a royalty check on this old oil well in long time I wonder if there is even a lease active.  Not worth seeing the attorney about it ..will see what happens with the auction.  Might have to do that later because the two pits are filling with water and could be a danger to animals and humans.

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Permalink Reply by Gale on February 8, 2016 at 5:48

Hmm, I certainly am not a oil/gas person but I thought my understanding is they have to keep the wells producing to maintain the lease. Try researching that and see if you can find out. I say this because we have one well that's in our unit where Samson is that's produced by McGoldrick Oil Co, that well was drilled in approx 1978 but still producing a little. McGoldrick farmed out to Samson and Samson drilled ( around 1993) additional wells in this unit. But McGoldrick held that one well and they ( McGoldrick) told me it was to keep the portion of the lease they wanted which was the Travis Peak. He told me they have to keep this well producing in order to keep their lease. And I seem to recall reading in the lease that wording is there. There might be a time limit on how long it can go with no production. I would pull my lease and read them to see..maybe someone who knows can chime in on this as well.

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Permalink Reply by Skip Peel - Mineral Consultant on February 8, 2016 at 6:01

No lease remains in force past the primary term without continuing production or shut in payments as allowed in the lease language.  I'm unsure about the consecutive months of non-production that must pass for a lease to expire in Texas but I suggest you look into it.  I bet Julie knows.

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Permalink Reply by Gale on February 8, 2016 at 7:49

Thank you Skip. You always seem to come through and guide us! We appreciate your input very much!

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Permalink Reply by Skip Peel - Mineral Consultant on February 8, 2016 at 7:52

You're welcome, Gale.  I'm afraid operator bankruptcies and the courses of action available to lessors will be a frequent topic in 2016.

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