AboutKeith Patton Expertise I can answer questions concerning physical and historical geology, environmental geology/hydrology, environmental consulting, remote sensing/aerial photo interpretation, G&G computer applications, petroleum exploration, drilling, geochemistry, geochemical and microbiological prospecting, 3D reservoir modeling, computer mapping and drilling.I am not a geophysicist.
Experience I have 24 years experience split between the petroleum and environmental industries. I have served as an expert witness in remote sensing, developmental geologist, exploration geologist, enviromental project manager, and subject matter expert in geology and geophysical software development.
Organizations American Association of Petroleum Geologists
American Association of Photogrammetrists and Remote Sensing
Education/Credentials Bachelor and Master of Science
Registered Geologist in State of Texas
Expert: Keith Patton Date: 5/28/2008 Subject: Johnson County
Question My mother owns 65 acres of land in Johnson county with 100 percent mineral rights. About 4 years ago she signed a lease of $1000/acre and 25 percent royalties. As of now she has not received any letters about Devon energy group putting any wells on her land, which is in Cleburne. Is this most likely becuase they haven't built enough wells to date or did they just later realize they it may not have any value as far as the barnett shale goes? I assumed that the gas company wouldn't have paid her so much for her land (four years ago that was a good deal) if they didn't think it was valuable. If it is, when do you think production will begin?
Answer G:
It generally works this way. You sell the rights to develop the property. Companies like Devon will buy up leases around prospective areas, not knowing whether they might be productive. The drill a few wells and if they make a discovery, then do infill drilling to develop the reservoir and define its limits. The lease usually spells out the length of time they have to do something. If it is open ended, that is a bad thing since they can sit on it and never drill. You should read the lease and see if there is a deadline by which time they must do some drilling or give up the lease so you can sell it again.
You might try contacting their land office and see if they have plans to do anything. Exploraton departments are funny things, they try to prioritize. Oil is high right now and in demand, they may be putting all their drilling budget into drilling for oil rather than gas, especially if they have time in the lease. They may be in no hurry to develop the property.
