Oil & Gas Leases: Why might they never drill?

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So they just spent thousand, possibly millions, to lease all the acreage to drill.....but then they just let the lease expire and never drill. Why on EARTH would a company ever do this?
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Опубликовано:

13 сен 2024

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Комментарии : 20

@joanngrunwald6590 7 месяцев назад

Took a while to find you, but you are the answer to our prayers when it comes to this topic. We hope to be among your first clients in California in the Monterey Sale formation. Thank you so much!

@jacobbec7414 10 месяцев назад

Thanks again Tracy! simple and straightforward. keep the awesome videos coming!

@jimreed4646 6 месяцев назад

Thank you. Very informative and very helpful.

@morpheus2072 8 месяцев назад

Dude thanks for uploading these videos. I had no clue about this stuff but saw an ad for oil lease for 15000

@PecanTreeOG 8 месяцев назад

You’re welcome! What kind of add was that?

@veritasimmigration Месяц назад

Awesome

@sandspider79 10 месяцев назад

Great video and I do appreciate it. Please keep it up! My favorite part of this video is sharing your story from drilling HBP wells and surprise you had😂

@PecanTreeOG 10 месяцев назад

Haha, thank you!!

@donnettevibe 7 месяцев назад

Great videos! I love the details in your explanations. I was curious if you could do a video on why a company would Top Lease? Or if you already have a video like this please share the link with me.

@PecanTreeOG 7 месяцев назад

That’s a good idea! I’m familiar with the basic reasons why a company would top lease (and why it’s not a good idea usually) but I’d love to have some of my land contacts as a guest on the show to discuss the more intricate parts of it. We’re focusing getting the Pecan Estimate platform fully launched (and getting over the flu 🤒) but will resume educational videos shortly after!

@ahmaddamra5847 8 месяцев назад

Thanks for the video. I’ve been thinking about investing in oil and . I was reached by one of the companies in around San Antonio area and they said that they have been in business for more than 50 years. They’re digging 10 more wells which they invited me to go and check them out in the field. Minimum investment 50k and ROI 18-24 months. They said they should be done with digging by the end of the month and starting pumping by April. Am thinking about it but skeptical since I never invested in this!

@PecanTreeOG 8 месяцев назад

@ahmaddamra5847 start small and research thoroughly! The best investments are the ones you understand how they work. Oil and gas is risky on a well-by-well basis, but if the $50k is spread across all 10 wells that's a better risk profile. Run all the names of those involved through LinkedIn, BBB, SEC complaints, "[insert name] lawsuit" google searches, and verify any facts provided that you can. What does "in business" mean for this company? Has it been the same people? Are they adding up all 25 people's 2-years of experience to get to that number? Side note, if they specifically used the term "digging a well" I would strongly question things. If that's your term, that's fine, but might want to start getting used to calling it "drilling a well" if you're going to invest :). Best of luck!

@vivarase3326 4 месяца назад

Hi I have a very specific question. So we have land in Louisiana my dad was the owner of the mineral rights and they’ve been leased. There were wells drilled all around our land but never on ours. The gas companies were trying to buy the mineral rights from my dad for 30+ years. He could never figure out why they wanted the rights but wouldn’t drill on the land but they would drill on all the land around. Literally you can see on google maps all the wells surrounding ours. He passed recently and within weeks the oil company contacted my mom and offered 30000$ for the mineral rights. She said no. Now they keep contacting her and have increased their offer 5x. Do you have any idea why they’d want to buy the mineral rights but have been putting off drilling when it’s leased? We just don’t really know where to start on this situation so any advice would be great 😂

@johnbadell6190 11 месяцев назад

Thank great talk !!

@PecanTreeOG 11 месяцев назад

Thanks!!

@pablomacias7393 7 месяцев назад

Can you make a contract that says that you have to do it right away

@PecanTreeOG 7 месяцев назад

As in that they have to drill right away? You can add whatever you want to into the lease; they’re very customizable. But certain terms are unlikely to be accepted by the drilling company if would make it too difficult to stick to. Usually a two- to three- year primary term is the shortest I see, and layered on top of that are other terms like continuous development and such. The more sought after your acreage, the more leverage you have.

@TheNiteinjail 8 месяцев назад

I expected all of this, but when you look at their actual numbers these answerz just do not cover all of it .. either oil and gas experts are complete idiots or there is more going on than you've coveeed here. There is so much unused leases there HAS to be more answers.

@PecanTreeOG 7 месяцев назад

There’s a lot to it and this video does just cover the main points. It’s best to think of leases as inventory and a company’s runway. Companies who drill and operate wells need to keep drilling wells to grow since production from the new wells immediately starts to decline once they start producing. A company without inventory is a dying company in this industry.