Yep. Just saw it. It doesn't seem like that big of a company though. Who knows if they'll do anything. It could just be rex buying shell 2.0
I agree, not a big company but still for someone to step in and pay over $600 million for a BK company is still a nice chunk of change, I’m guessing that’s not counting all the debt Rex has acquired over the years also?
I was in a landowner group when Rex made their presentation to us as they enticed us into signing with them.
They started the meeting by flat out lying to every direct question which affected half the group. I didn't sign with them, I don't do business with liars.
Some did sign with them, I doubt that very many but a small portion were pleased with their decision a few years later. In fact, out of all the people who I have spoken to over the years since that meeting not one person has anything good to say about them.
In the end I did far better on my own, without Rex or Carrizo (who flatly, blatantly lied to us over and over) the landowner group or, and especially, the fraud who ran the landowner group.
What was wrong with the landowner group?
When I came along the group had been meeting for some time and I felt like it was not appropriate for me to interfere with what they had already done.
At my first meeting the group voted to sign leases with Carrizo, and the man "leading" the group assured us that once we signed Carrizo could not cherry pick the leases they wanted, that they legally had to pay all or none in the group. As well we were assured that Carrizo could not back out of the deal, that they were required to see the leases through to payment of the land bonus.
I was certain that the man leading the group was either lying or didn't know what he was talking about.
The process drug on for months and months, every meeting I asked for and received verification that Carrizo couldn't pay some but not all and that they couldn't back out on us, that if a landowner actually owned the minerals under their property they would in fact be paid. Every time I asked I was assured by the "leader" that this was accurate.
It became a game almost, as the months went by it became ever more clear that Carrizzo was in fact only paying those of us around the Potts property, they were in fact cherry picking and were less and less likely to honor the vast majority of the leases we signed with them. I started going to Carrizzos office weekly, asking if the deal was still on and they assured me over and over that it was, that due to the over crowding of the auditors office it was taking longer than expected to finish the verification process but that all would be paid in due time if they owned their minerals.
Then one day the inevitable came, the certified mail informing us that Carrizzo was canceling the deal, in exact and specific contradiction to everything our landowner group leader told us. Carrizo had in fact only paid a few of us and cancelled the rest.
When I asked in the next meeting about this I was assured that there were lawyers who would handle all this to our benefit, but this too was a total lie from our "leader".
Enter REX, who our leader brought into a big group meeting with attendees who had taken off work and come from out of town to attend, having been told that REX was signing and paying us all. I asked the question point blank at the very beginning of that meeting, our leader deferred to the REX representatives and they assured us that all in the group were to be signed and paid by them. The deal they offered us was not a good one by any means and at some point they flashed through a generic looking map of the properties they wanted, without specific mention that these were the only properties they were signing, even the map lacking any identifying landmarks so we would know that not all of us were to be signed. An Amish man caught the deception, lie, and told me of it after he got up and walked outside motioning for me to follow him.
I re-entered and stopped the meeting, asking again the questions I had always asked at which time REX found their honesty and admitted that contrary to what they had told us 10 minutes earlier they were in fact only signing a portion of us and the rest were on their own to secure a lease with someone else. Well, the meeting blew up at that point and I was sure it would be the end of things but astonishingly there were some who stuck with Rex and the group leader even though they had flatly lied to us.
I doubt that more than a very few were ever drilled. I feel like they got what they deserved frankly, due to the fact that they stuck with REX and the group leader in spite of the total dishonesty they exhibited.
Many of us struck out on our own, staying in contact with each other as we sought our own deals due to the friendships many of us had predating the landowner group.
The most galling aspect of it all was that the group leader was sending all of us letters demanding we pay him the fee that we agreed on prior to signing with Carrizzo even though he couldn't close that deal for us and in spite of the fact that we obtained our deals wholly without his assistance.
Landowner groups are great, just be very sure of who you decide to allow to represent you. I made a far better deal for myself and my family than we would have gotten from REX and after wasting a year (many in the group wasted an additional year with the group before I cam e along) in the group. I was paid promptly and without any of the hassle we endured NOT getting paid through the landowner group.
I know my story is long but these matters are very important and deserve more than just a glance or two and willingly swallowing things told to you by men who act like they are honest and able even though there are many signs that they are operating in their best interests and not yours.
Thanks for the Information
Penn Energy is an Encap co. Encap is an energy venture capital fund. this deal attempts to raise the value of Penn Energy for resale or public offering.this should be a good thing for Rex lessors. the real story caught us flatfooted this week in that "leaks" indicated Encap merging PE with Eclipse, another Encap co. Eclipse now goes away in the 4th quarter merged into BRMR [Magnum Hunter]. only one Eclipse senior mg. goes over to BRMR. Encap has thrown a grenade into the Eclipse team dugout and only Oleg T. walks out. he's the most important player, the long lateral drilling guru. Encap is the puppet master in this show we are watching!
What are their leases like?
i assume you refer to Encap. i would tend to think each company under their funding umbrella leases according to what the market will bear. we dealt with an Encap co. Travis Peak. that lease is considerably more attractive than a Shell [Swepi] offer. Eclipse has aquired the leasehold via an Encap all paper deal and has stated the lease as "cheap" in their eyes compared to their Ohio lands. until landowners stick together [ large acerage] with knowlegable representation, the companys have the advantage. this late in the process i don't believe that will happen.
Anyone's check from Rex late this month? I usually get an email on the 24th and check by the 28th.
Same here Joe.