M&P, CX Energy, Halcon

In a phone conversation with an M&P paralegal on Monday the 14th, I was told that M&P was going to give CX-Halcon until Friday the 18th to pay bonuses to landowners in Mt Jackson 4 group 1. If bonuses weren't paid, they were going to exercise the 20 day 'escape' clause on behalf of the unpaid land owners. Does anybody have any information or discussion on that?

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Permalink Reply by JohnL on January 15, 2013 at 3:28pm
Woody- surprised you actually talked to someone at M&P. I've had no luck getting anyone to return my calls. Per their website there's a M&P meeting on Jan 23rd at 7PM at the Grove City High school auditorium for MtJackson4 members. We should know more then. I think Halcon has already cherry picked the few townships they wanted.
Permalink Reply by Woody on January 15, 2013 at 3:38pm
JohnL--- I live in West Salem twp, have 1 well already drilled about a mile from me, and another currently being drilled less than half a mile away. I've been told that I'm on the 'ok to pay' list, but haven't been as of yet. Just curious as to why my neighbors have been paid, while I seem to be on an island.....
Permalink Reply by John on January 16, 2013 at 1:28am

Very hard to figure out what their doing. I live in hempfield twp and they have paid lots of people around us and have seemed to have left out properties here and their with no rhym or reason? I would think M&P would have more communication and information from Halcon.

Permalink Reply by KB on January 16, 2013 at 10:12am

Woody - what is "group 1" of the Mt. Jackson 4 group?  Is Sandy Lake Twsp part of that?

 

 

 

 

Permalink Reply by JohnL on January 16, 2013 at 1:37pm
Karen- Sandy Lake twp technically falls under what Woody calls "group 1" the townships that CX Energy/M&P said that Halcon would honor the lease bonus payments. West Salem and Hempfield twp are part of group 1. The other "groups" are a little fuzzy, but as I understand it one of the groups were the townships in Southwest Mercer county that re-signed with Hilcorp in Oct 2012 (still waiting for their payments due in March). Another group were the townships located in Northeast Mercer county who were told at a meeting on January 7th that Halcon was not interested in honoring their contracts and they were released to hopefully sign with Shell(they own the Vista deep rights). The last group would be Southeast Mercer County that Halcon indicated back in Sept 2012 they weren't honoring those contracts either(supposedly they are in the dry gas area). It appears to me that Halcon has already chosen selected drilling units in West Salem and Hempfield twp and if you're not included in those units you may also not get paid. As for Sandy Lake township I'm guessing that we will be told next week that they won't honor those contracts either even after M&P supposedly resolved the under ground gas storage issues. Hopefully I'm wrong on the later.
Permalink Reply by KB on January 16, 2013 at 3:09pm

JohnL - thank you so much for the explanation.  So very hard to follow, isn't it!  Of course, smoke and mirrors always are.  I made a post earlier today asking if anyone has considered a class action suit against Halcon (disclaimer: I am not an attorney.  Nor do I work for one nor do I know any)  They did not do their due diligence and have tied up property owners for months with the promise of "the check will be in the mail".  Thoughts?

Permalink Reply by Woody on January 16, 2013 at 7:16pm
JohnL, Karen---here is a link to the CX-Energy website that recently posted an update. http://www.cx-energy.com/
Permalink Reply by JohnL on January 17, 2013 at 7:21am

Thanks Woody for the CX link.  I plan to attend. 

Based on the wording of the announcement and invitation, it sounds as though Sandy Lake township, Stoneboro and Sandy Lake boro's are out of luck also.  Apparently at the January 7th meeting for the 4 NE townships there was some discussion about a class action lawsuit by M&P against Halcon.

I guess I would sooner hear about other leasing opportunities verses a lengthy law suit.  It's 2 attorney's against Halcon, could possibly take years. 

It would be interesting to know exactly what percentage of the nearly 60,000 acres in the original MJ4 group actually got paid by Halcon.  Any guesses out there? 

 

Permalink Reply by Elnathan Cory on January 17, 2013 at 8:12am

A little over 50%. 50.0000000000000000000000000000000000001%

Permalink Reply by KB on January 17, 2013 at 9:12am

I received my invite to the Jan 23 meeting in todays mail.  It sounds like Sandy Lake Boro, Sandy Lake Twsp and Stoneboro are finished.  The memo from CX Energy states that they and M&P wish to discuss our " legal options regarding Halcon Resources".  That is good.  Because we NEED to discuss our legal options.  It also states that the conversation will be group updates "with particular emphasis on the storage field title defect that has been asserted by Halcon Recources......."  "Asserted" is the key word there.

Permalink Reply by JohnL on January 17, 2013 at 3:50pm
Einathan- I have no prior knowledge, but I'd be willing to bet that it's far less than 50%. My uneducated guess would be 25-30%.

I would think that CX Energy and M&P's reputation has to be fairly tarnished after this. I recall seeing a recent post under the Mercer County group from Halcon's Jan 8th Goldman Sachs Global Energy conference report on pages 25-26 of a map that showed a majority of Mercer county as being under lease by HK, if they only knew the truth.
Permalink Reply by Elnathan Cory on January 18, 2013 at 2:58am

CX on their web site claims that the majority of the Halcon leases have been paid!

 

"We are happy to announce that Halcón Resources has already paid the majority of Mt. Jackson 4 landowners in their buy area who have not failed title due diligence. Halcón has also informed us that the few checks that did not make the initial check runs (approximately 100 landowners) but did pass title due diligence will receive payment by the end of January."

 

That is why I said 50% + a little more.The hope for Sandy Lake Twp, Stoneboro and Sandy Lake may be in the hands of the court or signing with Hilcorp especially along the border of Lake Twp."

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