Halcon lease assigned to Shell: Who else?

I leased my land last year to Halcon.  In todays mail I received a letter from Halcon saying they have assigned my lease to SWEPI-- a subsidiary of Shell.  Did everybody in our land group get switched or did they cherry pick again?  I was in the Mt. Jackson group that dropped half the people.  I live in Salem twp. and haven't noticed any activity around here.  Does anyone have any info to help me understand what's going on?  Any insite would be helpful.  Was this a good or bad thing for me?

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Permalink Reply by James Foster on October 12, 2013 at 6:28pm

It is not uncommon for companies to buy, sell, trade, or even transfer partial interest in a lease. This must be recorded ... in Ohio and I am guessing Pa. Since you got a letter it seems that the entire lease may have been tranferred. Most people do not get letters for partial assignments but it appears in recorders office. In order to actually drill a well you must have enough contiguous acres to comply with state regulations on setbacks unit size etc. Roughly you need about 640 acres to drill 3 horizontal wells in Ohio. So in order to get that horsetrading is done. I am not at all familiar w PADEP websitd but I think you can look up who is drilling and where. Ohio website is easy to see who and where in weeky report on there. SWEPI and Halcon neither are drilling much here but both have permits. Halcon has drilled wells. Good or bad probably neither just a fact. One company needed something other company had. Where you are could be a piece swepi needed or a piece halcon gave up to get something they needed somewhere else. Recorders office could give you a clue if only you or lots of transfers took place at same time. Some records are online or go there and employees there can help you look.

Permalink Reply by Linda sheirer on October 13, 2013 at 6:41pm

Much appreciated.

thank you for your help.

Permalink Reply by Nancy LeNau on October 12, 2013 at 10:36pm

Linda, What do you mean about The Mount Jackson grouped that dropped half the people ?  Please explain ?I am confused.  Many Thanks in advance !   Nancy

Permalink Reply by Linda sheirer on October 13, 2013 at 7:08pm

the 2 lawyers that formed our land group are being sued.  The lawyers said in several meetings that everybody who signs up with this mt. Jackson group will be included.  Everybody. period.  3 months after we signed- as a group, (just us leasors-not the company--)half the people who had signed got letters saying Halcon doesn't want all them now.  all people from like half the townships and municipalities in Mercer county, were excluded.  No lease. No money. On top of that,  Some folks went to another company, signed, and now the lawyers want a 6 % fee from the lease money those people got.   The 2 lawyers are  known as Mo & Po around here+ So anyhow, many folks around here don't like Halcon much, so I started this discussion, actually thinking I posted this on the mercer county site   I was told there were 40 pages at the recorders office of people Halcon transferred.  I keep on hoping I hear of some drilling around here, then this comes in the mail.  Last month a fella came here saying there were a few things we needed to initial from our contract.  guess the recorders date was listed as the day we bought the place-on the contract.. and one paper of the deed said "married" and another said "man and wife" and somewhere else it said "leaser".   Anyhow, sorry if I dribbled on and on. nite.

Permalink Reply by Gas heir on October 13, 2013 at 10:03pm
Mo and Po are the lawyers for CX. Just wanted to add that bit of info.
Permalink Reply by Elnathan Cory on October 13, 2013 at 10:19pm

Be glad swepi is picking you up! Hopefully they will pay you. Halcon is not reliable.

Permalink Reply by Nancy LeNau on October 16, 2013 at 8:57pm

Thank you, Linda !

Permalink Reply by JREwing on October 14, 2013 at 1:25am
If there are indeed 40 pages of recent lease assignments from Halcon to Swepi, that is pretty big news. More evidence that HK is vacating northwest PA for northeast OH? or just getting rid of parcels that were unusable because they were surrounded by old Vista leases that Swepi had purchased earlier? I should know better than to speculate about what and why these companies do what they do... Some of the things I've seen them do seem to defy logic and common sense.
Permalink Reply by Samuel J. Orr on October 16, 2013 at 8:43pm

It would appear that at a very minimum at least 500 individual leases have been assigned and perhaps as many as 700. The largest document assigning leases from Halcon to Shell (SWEPI) is 20 pages  15 of which have about 25 names per page of landowners. There are several other documents that are much shorter. It would be helpful if others such as Jim Litwinowicz could express their opinions of what this all means in the big scheme of things. I do not know the aggregate acreage involved, but surely CX can easily compute this since most of the leases appear to be the result of M&P/CX's group signing of the Mount Jackson 4 group members. The fundamental question is whether Halcon is giving up altogether on Mercer County?? Is the acreage assigned by Halcon a part of Halcon's non-core acreage that Halcon said several months ago that it was going to sell??

Permalink Reply by Gas heir on October 16, 2013 at 9:35pm

I was looking at the document on the Mercer County Recorder's site and it seems that all of the leases that transferred were in Perry, Sandy creek, or Fairview townships. These are in the area of the SWEPI Palmer well and the SWEPI Mills well. Makes good sense to me!

 

Permalink Reply by Samuel J. Orr on October 17, 2013 at 8:13am

Some of the leases were in Salem Township. I only quickly reviewed the 20 page document assigning Halcon leases to Shell but I believe there are several others. I am traveling and do not have access to the Recorder's website to further analyze the relevant documents. Hopefully some others will step up to the plate and provide more accurate data and a better analysis. It appears to me that Shell (Swepi)  definitely controls the northeast quadrant of Mercer County given that they previously purchased Vista's deep rights in Mercer County. Vista had a large presence in Mercer County but its largest concentration of acreage was in the northeast quadrant of the county.

Permalink Reply by JREwing on October 17, 2013 at 10:16am

There were a handful in Sugar Grove too.  If I had to 'guess', I'd say Halcon got rid of most of what they had in those townships.  The million dollars question is why.

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