Artex Oil in Guernsey County

I asked this question last fall after Artex bought out the old Anadarko leases in eastern Ohio. Artex, to my knowledge, has done nothing, nada, zip, since then. I fail to understand why they would pay for those leases only to sit on them until they all expire in October of next year. Can someone, anyone, shed any light on this? Are they waiting to jump on all of these next spring? Would they indeed allow them to expire? Or are they trying to partner with someone before exploring the leases?

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Permalink Reply by Philip Thackray on June 4, 2015 at 7:46am

Ty,

On the Ohio production website here:

http://oilandgas.ohiodnr.gov/production

There is one well shown for Sharon Township, Noble County, Ohio.  It was owned by Anadarko through 2014 3Q then shown as owned by Artex from then on. 

This one well is also shown on the Ohio oil and gas viewer here:

https://gis.ohiodnr.gov/website/dog/oilgasviewer/

as the Frec Nobl Sharon owned by Artex

This is the only well shown on either site in Noble County.

Production information is available at the first website I listed.

Neighboring townships have little activity which is why I wondered if perhaps something other than Utica was going on.

Phil

Permalink Reply by Bluejack Farms on June 4, 2015 at 8:02am
There is one Utica well in Knox county Morgan Twsp also. Artex just did 3D seismic on the whole township(30sq miles). Owl Creek Prospect in the above posted by James V.
Permalink Reply by White Tiger on June 8, 2015 at 8:39pm
Philip,

I agree with what you are saying, they could be looking for other formations, but a lot of the leases in Sharon twp were signed with Amarado oil company Ltd back in 2011 with a 5+3 that was tranfered to Anadarko then tranfered to Artex. Those leases have a non-surface use clause in them. So it would be hard to drill with out horizontal drilling.
Permalink Reply by PA Joe on June 4, 2015 at 8:03am

Artex didn't buy the leases off of Anadarko. Anadarko "farmed in to" existing Artex leases. I.E., Anadarko paid Artex a few years ago for the right to drill on properties Artex had leased over the years. When the acreage didn't really pan out for Anadarko (they didn't try to hard in my opinion) they came back into Artex's hands. My understanding is Artex is looking to drill their own Utica wells now, once prices recover.

Permalink Reply by Glenn C. Keith on June 4, 2015 at 8:12am

I am not sure I understand what you just said. Let me describe a specific example and perhaps your answer will allow me to understand correctly. I had a lease with Anadarko which began in 2011 in Knox Township, Guernsey County. Last fall I was informed that Artex had indeed bought it. How does this situation fit into the scenario you described? Thanks in advance, my knowledge of all of this is elementary.

Permalink Reply by David Allen Lilly on June 4, 2015 at 8:40am

Joe's reply may not fit your situation. Sometimes we take what happens to us or around us and apply that scenario across the entire dynamic. I do this sometimes as well, but the danger is trying to apply what we view as smart or economical to a situation only to have the oil and gas companies do the exact opposite.

Your particular situation is that one company sold your lease to another, and as far as the information here on this site it is suspected that the buyer is a flipper and not a driller.

At the end of the day what matters most to you is probably more the lease terms and less the owner of your lease. I have come to suspect that their isn't a ton of integrity in the industry and one is probably close to being as bad as the other.

Your lease terms are what matters because theoretically whoever owns your lease will need to abide by those terms.

Also, in your case I would rather see an actual driller own the lease, although if a company wanted to drill they would probably have little difficulty coming to terms with Artex on a joint venture type of relationship.

All I can tell you is don't have a stroke over any of this, we as landowners have almost no pull with the companies we are dealing with. I am seeing part of my acreage being drilled currently and have no idea what the time table for royalties will be, but when they do start coming in I will have them sent to a reputable law firm to verify that the payments are in conjuction with my lease terms, it is all I can really do.

My situation is similar to what Joe is describing, I am leased with Antero and have 12.5 acres in a Chesapeake unit which also has Eclipse acreage in it. Chesapeake has done something to provide themselves the authority to drill acreage leased to the other companies, but again, it doesn't matter to me who is who as long as my lease terms are not ignored.

I hope some of this helps.

Permalink Reply by Glenn C. Keith on June 4, 2015 at 8:52am

Thanks David, you seem knowledgeable. Another basic question, my lease expires on October 13th, 2016. Does this mean that Artex could begin drilling just prior to this date and the lease would be automatically extended by virtue of the work being started?

Permalink Reply by James Vanderink on June 4, 2015 at 9:13am
Don't underestimate James/Huck. Thats a money making machine. Once they get the ball rolling lookout. They will make it happen where others couldn't or like said above.... didn't try very hard.
Permalink Reply by wandering juju on June 8, 2015 at 1:41pm

PA Joe is correct...    Again.. Artex has been drilling Ohio Wells for many years..  easy to go to web site and find out more about them..  and yes.. they Tied into Anadarko early in the play..

 http://www.artexoil.com/  they made a great move because if the acreage didnt pan out.. it came back.. in the case of a lease being sold to them..  Smart guys making smart moves..  And David Allen Lilly.. you should do some research before you..  and many others like you.. start making assumptions.. 

Permalink Reply by David Allen Lilly on June 8, 2015 at 2:34pm

I have no idea why you are singling me out or what I said that you take issue with. I offer many comments on the site based on what I am told from solid sources and what I see and am told personally.

I will sometimes offer what are rumors that I feel have a decent chance of being true but I will quantify those comments as such.

I also offer opinions on things based on knowledge and logic, sometimes I am right and sometimes not. If I find myself on the incorrect side of a situation or opinion I will quickly own it, correct it and move on.

I would rather be temporarily incorrect that wrong over the wrong term, and I would never want to offer incorrect information to folks I talk with and then have them make a mistake based on me being to prideful to admit error.

If you have a problem with anything I have written please be specific and we can discuss it. If you have a problem with me on a more personal level, well, that is yer problem. I know some folks don't cotton to my personality just as others rub me the wrong way.

Just don't make it real personal.

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