Deciding not to finish a drilled well because of “complex” geology is a nice way to say…we had no business drilling in a faulted zone isn’t it?
This 2006 bizjournals story is worth the read if U R from Arlington and follow news stories about the Viridian, an upscale mixed use development across from the city landfill.
Sam Ware purchased almost 2,000 acres in 2004 for the area now known as the Viridian development.
In 2007 Huffines bought the surface rights from Mr Ware (aka the high school streaker) who kept the rights to the subsurface/minerals. But the wells did not produce much gas. On top of that there were failed Range Resources inspections with the City of Arlington too. Range Resources, David Poole, told me the gas had long ago escaped because of that big fault. That 1,800-foot drop off is now formally called Bird’s Fort Fault because the owner, Sam Ware renamed it “The Abyss”.
Once Range Resources sold to Legend, the wells were permanently plugged and abandoned.
In January of 2015 Mr. Kembel, Huffines president, told me when I was recording at a neighborhood meeting (for the Rolling Hills drill site) that there IS gas under the Viridian…. “We went out of our way to buy all the minerals so we wouldn’t have any drilling as opposed to ‘opposing it’, we just bought it. That way we put our money where our mouth is and said we’re going to buy all the interest and not worry about it, but not everybody can do that”.
Mr. Kimbel sounded green that night, but honestly I’m not sure if his version of green is environmental or of the cash flavor type green after re-reading that 2006 article, and recognizing his name..…“There will be significant attention paid to alternative uses for drill-site easements as part of the land-planning process,” Kembel said. “For example, drill sites that may not be needed for a while could be used for other things, such as a ballpark or for parking”.
Imagine if the bank did NOT foreclose on those mineral rights in 2010…
Imagine if Mr Ware was successful in grabbing that gas…..how many gas wells (uumm former ballparks/parking) would be there now c0-existing with the Viridian development?
If Mr. Ware was successful in grabbing that gas then he would have been able to pay Plains Capital Bank for the loan on the mineral rights and he would have been able to pay Huffines their contracted 25% royalties.
Huffines would not have had to sue him for it….is that how Huffines aquired the minerals as part of a settlement or did Huffines buy the minerals from Plains Capital Bank?
Mr Kembel said Huffines “bought” those minerals, so there you go.
Oh BTW the Viridian was sold last summer in 2015…don’t know who owns the minerals but who in their right mind would want to drill there now?