What to do when your oil and gas operator goes broke

In case you haven't noticed, the price of oil has fluctuated tremendously in the last couple of years. In 2015, 67 oil and gas companies declared bankruptcy, which represented a 379% increase from 2014. As the price of WTI continues to hover between $40 to $60, bankruptcies will continue in the oil patch. So what

By |2019-01-31T13:27:00-05:00January 31st, 2019|

What to do with a drilled but uncompleted well (DUC)?

There are currently over 1,400 drilled but uncompleted oil and gas wells in the Eagle Ford shale alone. There are almost 1,000 DUCs in North Dakota alone. In other words, DUCs seem to be an effect of low oil prices. As companies hope to see the price increase, they have incentives to not complete their

By |2019-01-25T22:36:12-05:00January 25th, 2019|

THE RIGHTS OF THE OWNER OF THE MINERALS

What every Real Estate Agent should know when selling land and Mineral Rights. The right to enter upon the surface for the exploration and production of the minerals (or to designate a third party to do so);The right to lease or sell the mineral rights, in whole or in part;The right to up front cash

By |2019-01-25T18:28:00-05:00January 25th, 2019|

Of Production Sharing Agreements, Allocation Wells, and Horizontal Wells

The age of horizontal wells has revitalized the great Texas oil and gas industry. However, it is arguably an “open issue” as to how revenues from horizontal well production will be “shared” when the horizontal wellbore traverses two or more separate tracts of land or two or more pooled units. My best guess is that

By |2019-01-25T13:19:00-05:00January 25th, 2019|

THE CO-TENANT PROBLEM IN THE DEVELOPMENT OF OIL & GAS

In the United States, it is common for one or more concurrent owners, or co-tenants, to own the fee oil and gas estate in fractional interests. Each of these co-tenants may execute oil and gas leases to different lessees, who then own undivided fractional shares of the leasehold estate with other Lessees and unleased mineral

By |2017-08-29T10:35:02-05:00August 29th, 2017|
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