Yesterday I received notice from the Bankruptcy court handling Samson's bankruptcy. It's a " NOTICE OF DEBTORS' MOTION FOR ENTRY OF AN ORDER AUTHORIZING DEBTORS TO SELL CERTAIN OIL AND GAS ASSETS FREE AND CLEAR OF ALL LIENS,CLAIMS,AND ENCUMBRANCES.
I'm wondering how many received these notices. There are 22 pages front and back for a total of 44 pages of wells listed. Wells in Co. La, Ms,ND,NM,OK,TX,AND WY
Any thoughts on this please express them as I'm interested in the different views on this. My personal thought is to view this as a "good thing" and pray a company with a strong financial base will buy our wells. I guess I should have said I think we are along for the ride and hope the ride turns out well ( no pun intended) LOL! So any thoughts please post them and if anyone wants more info I'm will to scan these papers for anyone to see that's interested.
Thanks!

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Thanks Kathy,

Our Chinn Wells have been sold to a company out of Ft Worth named Trivium. I imagine what you have stated is how it will all play out.
Honestly I don't think Samson is even paying for what they are producing so it likely will be better for us any way.

Hi Kathy,  haven't talked to you in a long time.  I'm going by memory but GMX sold the Cotton Valley wells to ETPC prior to the bankruptcy.  GMX kept the horizontal wells but didn't drill any more.  They got in trouble because of moving into the Balkin area and being "late to the party" had to overspend either by buying new mineral interests or buying into some joint productions.

the bankruptcy  court auctioned off the remaining Tx properties and the Assets that were in the Balkin.  Got no bidders other than the DIP whose bid was the amount of money owed to them by GMX.  As far as I can tell, the new company kept all of GMX management and continued drilling in the Balkin.  Nothing changed except the shareholders lost all of the stock that they owned.  Now , the new company, Thunderbird, hasn't drilled any wells for the last 2 years..

I think I'm off subject here since this started out as a Sampson bankruptcy.  I missed this one, but have some Sabine and still waiting to see how that is going. 

Bob

Bob,

Your reply was not to me but I appreciate your post. Hearing what other companies have done or do is always a way to learn. The Samson thing should/ will be interesting to watch for sure. Can you tell me how you found out what the bids were on the GMX wells you were referring to? I would be interested to watch what the wells sell for or if they don't sell.
Thanks so much for the info!

Gale,

The debtors, GMX, hired a "claims and noticing agent" and we were given a website for copies of everything to do with the bankruptcy. Many of these were very complicated and above my knowledge level.  My main interest was in the beginning GMX asked and the court agreed to allow them to continue operating and pay the royalties and all other expenses to continue the business.  The DIP advanced an additional $50. million for this purpose.

The detail, also included monthly disbursements for everthing including checks to each royalty owner and all the way down to how the petty cash was spent.

Huge amounts of legal and accounting fees were expended.

In the end, when the assets were auctioned, no one bid above the amount owed to the DIP so they got everything and immediately set up a new company Thunderbird Resources LP to take over the assets of GMX.

Hope this helps.

Bob

The list of wells can be found here:

http://docket_pdfs.gcg.net/smn/15-11934/621_11934.pdf

Thanks for the pdf.  What does it mean if your wells aren't listed? 

I assume it means your wells are not getting sold! And there is a post that said the Benton Feild has a offer already and will be sold private.

My unit with Samson was not listed.  This is an old lease from Placid from the 1950's and it was being held by production.. Since I have not had a royalty check on this old oil well in long time I wonder if there is even a lease active.  Not worth seeing the attorney about it ..will see what happens with the auction.  Might have to do that later because the two pits are filling with water and could be a danger to animals and humans.

Hmm, I certainly am not a oil/gas person but I thought my understanding is they have to keep the wells producing to maintain the lease. Try researching that and see if you can find out. I say this because we have one well that's in our unit where Samson is that's produced by McGoldrick Oil Co, that well was drilled in approx 1978 but still producing a little. McGoldrick farmed out to Samson and Samson drilled ( around 1993) additional wells in this unit. But McGoldrick held that one well and they ( McGoldrick) told me it was to keep the portion of the lease they wanted which was the Travis Peak. He told me they have to keep this well producing in order to keep their lease. And I seem to recall reading in the lease that wording is there. There might be a time limit on how long it can go with no production. I would pull my lease and read them to see..maybe someone who knows can chime in on this as well.

No lease remains in force past the primary term without continuing production or shut in payments as allowed in the lease language.  I'm unsure about the consecutive months of non-production that must pass for a lease to expire in Texas but I suggest you look into it.  I bet Julie knows.

Thank you Skip. You always seem to come through and guide us! We appreciate your input very much!

You're welcome, Gale.  I'm afraid operator bankruptcies and the courses of action available to lessors will be a frequent topic in 2016.

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