Insights

Acquisitions & Divestitures, Land Management

The San Juan Basin offers many investment opportunities, as it contains the largest coal-bed methane field in the world and ranks second in total gas reserves. This spotlight provides geological facts, current activity and things to know beforehand.

Background

The first oil well in the San Juan Basin spud in 1911, and since then over 40,000 wells have been drilled. Drilling activity was steady from the 1990s until 2008. In 2007, there were over 40 active rigs. Then attention turned to the prolific Marcellus, where gas could be extracted less expensively. In the past 12 months, 135 wells were completed in the Basin. The leading players include BP America, Hilcorp Energy Company, Catamount Energy Partners, and Encana Oil & Gas. 

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Leasing

We understand the importance of accurately securing mineral rights. A sound development plan, includes verified ownership of the leased minerals. Most companies decide to: (1) either acquire the minerals outright (owned in fee simple) and let other operators lease and pool their minerals into their development programs, or (2) lease the minerals from the various owners in the locations and formations of interest. In either strategy, correctly identifying the mineral owners is key to the development process.

Below we’ve compiled the most common questions about the oil and gas leasing process.

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Insider, Land Management, Leasing

As veterans in the oil and gas industry, we know that learning the terminology is vital to navigating lease acquisitions and interpreting title research. Whether you are a newcomer or well-versed in the business, there is never a shortage of learning opportunities. At Cinco, we enjoy providing community and client education on the varied dimensions of land and title work.  We’ve compiled a selection of terms and brief definitions to conveniently help you refresh your knowledge.

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Land Management

When you are actively pursuing an opportunity in the oil and gas industry, whether it’s making an investment in an E&P company, buying minerals rights, or acquiring leases, having access to the right information and the right team to execute is critical from a value and timing perspective. While land management companies provide a multitude of benefits to the market, here are six greatest advantages they offer.

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Acquisitions & Divestitures, Due Diligence

Due diligence is the process of investigating assets to make an informed decision about the cost, benefits and risks of acquiring or investing in such assets. As an industry leader in title diligence, Cinco evaluates mineral properties across the US and works closely with our client’s attorneys and lending partners to help them navigate the risks inherent with their deal.

While no two oil and gas due diligence evaluations are alike, there are common stages and milestones that we see in every process. This article will breakdown the typical oil and gas title due diligence process and describe how Cinco supports our clients’ success at each step.

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Land Management

Land administration personnel are in demand again now that deals are happening.

This edition of the Texas Landman field update covers activity in Railroad Districts 1-6. Even though drilling activity has remained flat since my last report, oil prices have edged up close to $60/bbl and held firm above $55/bbl. The increase in  oil prices may be due in part to the Saudi’s keeping their promise to cut production until later next year to speed up the rebalancing of the oil markets. Of course, they may just be trying to boost the price of oil before their IPO of Saudi Aramco later next year.

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Acquisitions & Divestitures, Mineral Buying

Title due diligence in certain transactions may seem like an onerous part of the deal, causing some to speed through it and overlook critical issues. Your due diligence process is the most effective insurance policy against title busts and loss of mineral value.  However, in our experience, we have seen some big mistakes made by mineral buyers that generate big regrets down the line.

Here are four big mistakes we see made all too often:

  1. Overlooking Location-Specific Risks
  2. Not Getting the Executive Rights or Other Rights to Lease
  3. Acquiring Partial Rights Only
  4. Skimping on the Diligence
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