Any Oil And Gas Industry Guys Here?

[Ranzo]

I have property in far S Arkansas which my G father purchased in the 1930s. He bought it as potential farmland.There is now a promising play for oil there in the Brown Dense Formation. It's finally been divulged that Southwest Energy is the outfit involved. For a long time this whole project has been so hush-hush but now some details are starting to trickle out. At first it was natural gas that was taken but there's no money in that right now as the mkt is saturated and recent innovation in horizontal drilling has made extracting oil in that particular formation lucrative. It's been widely known there was oil there for decades but they couldn't get to it until very recently.State of Ar is doing their best to regulate productive activity it out of existence, but the energy lobby is strong. Think they will compromise on the waste water restrictions and call it good. Oh, we all know fracking is the root cause of quakes./s

One of my distant cousins who has lived there his entire life has already received a lease bonus check and went to the big city to buy a new car. haha His property is in the same county, and is one of the two initial test sites.

Appreciate any info ya'll might have.

 

[Ranzo]

Wrong Forum I see. Odds are somebody is a least tangentially in the business here and could provide some tidbit or anecdote of SW Energy's reputation and thoughts on BBD Potential and oil yield quality of the production...oh well, thanks anyway, fellers. Even if you have some exp with dealing with oil drillers on your land I'd like to hear your perspective.

One last try: Thoughts of an Atty expertise I'd recruit to oversee and keep a keen eye on these operators; seeing them honest is a consideration as I'm ~ 4 hrs away from the play. Trips are planned but I'm not relocating at this stage.

Go Cowboys?

 

[CowboyMcCoy]

I dated a petroleum engineer one time. But she moved back to Malaysia. What a sweet girl she was/is, though.

Jerruh, are you reading this????

On the law front, you may talk to someone with experience in the areas of business, environment and real estate.

 

[gmoney112]

I have property in far S Arkansas which my G father purchased in the 1930s. He bought it as potential farmland.There is now a promising play for oil there in the Brown Dense Formation. It's finally been divulged that Southwest Energy is the outfit involved. For a long time this whole project has been so hush-hush but now some details are starting to trickle out. At first it was natural gas that was taken but there's no money in that right now as the mkt is saturated and recent innovation in horizontal drilling has made extracting oil in that particular formation lucrative. It's been widely known there was oil there for decades but they couldn't get to it until very recently.State of Ar is doing their best to regulate productive activity it out of existence, but the energy lobby is strong. Think they will compromise on the waste water restrictions and call it good. Oh, we all know fracking is the root cause of quakes./s

One of my distant cousins who has lived there his entire life has already received a lease bonus check and went to the big city to buy a new car. haha His property is in the same county, and is one of the two initial test sites.

Appreciate any info ya'll might have.

I'm guessing you own the mineral rights. You will more than likely be contacted soon by a landman contracted by Southwest Energy if they deem your land valuable enough to drill. If you own the mineral rights it's a standard play to get anywhere from 1/16 to an 1/8 percent of royalties generated. How much they initially give you for drilling varies a lot. If they do contact you, take their initial offer with a grain of salt. They will lowball you, don't take it personally that's just how the business operates. If the offer is decent you'll want to consult with an oil/gas attorney regarding the contract.

I don't really know much about Southwest Energy. Most of my experience comes from workings with Exxon.

 

[Ranzo]

Yes, to Mineral Rights. Thanks. I'm looking for an O&G Atty out of Houston. So happens my BIL is a Partner With Price Waterhouse Coopers and has plenty of connections down there. It's rumored, incidentally, that Exxon is among the companies snooping around at moving in/partnering and that there are other huge outfits doing the same. I'm becoming a quick study in the business with lots of catch-up to do. It's fun, though. everybody around Magnolia, ar is abuzz. My understanding is that SW has invested enormous sums and they naturally wouldn't have if they didn't believe it was a good bet. Thanks again.

 

[Ranzo]

I dated a petroleum engineer one time. But she moved back to Malaysia. What a sweet girl she was/is, though.

Jerruh, are you reading this????

On the law front, you may talk to someone with experience in the areas of business, environment and real estate.

Should have kept her, bud.

Already have real estate contacts and addressed Atty a minute ago in this thread, I'm well versed in business operations but this industry is completely new so far. If things take off I'm looking at forming a meetup group up there to discuss some things they're hearing and compare notes.

 

[CowboyMcCoy]

Should have kept her, bud.

Already have real estate contacts and addressed Atty a minute ago in this thread, I'm well versed in business operations but this industry is completely new so far. If things take off I'm looking at forming a meetup group up there to discuss some things they're hearing and compare notes.

She was sweet and brilliant, too.

I bet she's successful at drilling. I sensed she had the talent for it....

I wouldn't know how to advise on any of this. But good luck. It would seem people would actually make more money off the royalties, given it's their land.

That part seems to favor the oil company, which sucks.

At least it's not like Malaysia where virtually all the money from oil goes to the government.

 

[YosemiteSam]

My company brokers in WTI and NG options.

 

[Ranzo]

My company brokers in WTI and NG options.

Good to know.

 

[theogt]

Most of the O&G lawyers I know do not work for individuals, but I could try and locate one if you think you need one.

 

[Ranzo]

Most of the O&G lawyers I know do not work for individuals, but I could try and locate one if you think you need one.

I don't know yet and I'm sure you're right. It does makes sense. My thinking on that issue is that since I know very little about O&G it places me(and everyone else there) in a bit of a weak position when dealing with energy outfits...contracts and such. We're not quite there yet as the first test site is to be drilled tomorrow closest to my area. If it goes well then it's fantastic for the whole community. It's well known what's down there but extracting profitably has been not remotely feasible until recent engineering innovations. I'm wondering if forming a loose association of stakeholders might present a better option than approaching attorneys individually. Again I'm just wanting to make sure my interests are served according to the laws/royalties/property/mineral rights. Not that I don't trust this company, but a little knowledgeable representation seems prudent.

It's also possible that I won't even need one. This is all new to me and I'm a few hrs from the site in question.

Thanks for the offer and I'll keep you in mind.

 

[roughneck266]

I am in the industry, unfortunately I work offshore and have never had any dealings with SW. I can ask around though.

 

[Ranzo]

I am in the industry, unfortunately I work offshore and have never had any dealings with SW. I can ask around though.

Great! Thank you.

 

[theogt]

I don't know yet and I'm sure you're right. It does makes sense. My thinking on that issue is that since I know very little about O&G it places me(and everyone else there) in a bit of a weak position when dealing with energy outfits...contracts and such. We're not quite there yet as the first test site is to be drilled tomorrow closest to my area. If it goes well then it's fantastic for the whole community. It's well known what's down there but extracting profitably has been not remotely feasible until recent engineering innovations. I'm wondering if forming a loose association of stakeholders might present a better option than approaching attorneys individually. Again I'm just wanting to make sure my interests are served according to the laws/royalties/property/mineral rights. Not that I don't trust this company, but a little knowledgeable representation seems prudent.

It's also possible that I won't even need one. This is all new to me and I'm a few hrs from the site in question.

Thanks for the offer and I'll keep you in mind.

If you had a group of private sellers, you'd probably be more attractive to a lawyer in terms of representation. This isn't legal advice, but these types of deals are pretty standardized, as you can imagine, so you're essentially dealing with the economic terms, which should ultimately be decided by you and not the attorney.

 

[Ranzo]

If you had a group of private sellers, you'd probably be more attractive to a lawyer in terms of representation. This isn't legal advice, but these types of deals are pretty standardized, as you can imagine, so you're essentially dealing with the economic terms, which should ultimately be decided by you and not the attorney.

I understand, good point. I think my primary issue is that I'm not dealing from a position of expertise or even substantial understanding of all the ins and outs. In my former business dealings I always like these roles equal if not reversed. I'm getting educated on the oil game as quickly as i can. Oh, and I ought to mention the operator here as been super secretive from the get-go and only revealed their identity and mission not long ago;their prerogative as they've committed ~200mil and counting and that kind of investment tells us they mean business here. I'm ok with how things are coming along, I just tend to over analyze at times, maybe now.

Again, thanks.