Barnett Shale

Shhhhhhhhh! We've got big news

The Southwest Fort Worth Alliance reports in an e-mail to members that it is "THRILLED TO ANNOUNCE" that it has endorsed a "SUPERIOR OFFER & LEASE" from Vantage Energy and its land company, Caffey Group. The group just isn't so thrilled that it wants to release any of the terms. So until that moment, know that more than 20 neighborhoods in the alliance, which claims more than 6,000 acres, have an offer that tops the $25,000-an-acre bonus and 25 percent royalty on a three-year term that we previously reported. It "also exceeds all other offers in contractual concessions and in  environmental and safety considerations," the e-mail says. Informational meetings and signings are to be set during the next two weeks.

Vantage is a Denver company started by Roger Biemans, a former top exec with Encana Oil & Gas USA. According to a Denver business magazine, Biemans in December said it raised $460 million from Quantum Energy Partners of Houston, Carlyle Group, Lime Rock Partners and Riverstone Holdings. Riverstone also is backing Titan Resources, the Fort Worth company that has won several large neighborhood endorsements in recent months. Titan also uses Caffey for land services.

-- Jim Fuquay

New face Titan Operating is looking titanic

For a new company, Titan Operating is up and running like a veteran. In the past month it has won the endorsement of big neighborhood groups in Colleyville and North Arlington, and this week announced the financial backing of Riverstone Holdings, a $15 billion private equity firm with sizable energy holdings. Chalk up the fast start to Titan's founders, all experienced Barnett Shale producers. Titan Chairman Hollis Sullivan is also president of Wichita Falls-based Hollis R. Sullivan Inc., which in July was named as one of the sellers of $800 million worth of producing properties and leases in the Barnett Shale to XTO Energy. Other Titan co-founders are Christopher Hammack, former vice president of drilling and completions for Range Resources, and Mark Schumacher, who headed EnCana Oil & Gas USA’s Barnett Shale operations. Riverstone did not disclose the amount of its investment in Titan, but said it “made a significant capital commitment to Titan,” which it said will focus “on acquisitions and development in the Barnett Shale.”

Click here for the Star-Telegram's report on the transaction: Download titan_resources.doc

-- Jim Fuquay

$25,500 deal reached with Turf Green United (SW Arl)

The group in Southwest Arlington known as Turf Green United says on its website that it has reached a deal with a relatively new drilling company Titan Resources and its land affiliate The Caffey Group.

The terms of the deal are:

• $25,500 per-acre bonus
• 25 percent royalty
• Initial three-year term with an option for another two years and another $25,500 bonus

Competition helped drive up the price. We last told you in late February about a $17,000-per acre signing bonus and a 25 percent royalty offered by Carrizo Oil & Gas. The group also reports on its website that it received an offer of $25,000 per acre from Dale Resources, representing Chesapeake Energy.

The group, which posted the deal agreement last night, also announced signing dates at The Church on Rush Creek, at 2350 SW Green Oaks Blvd., in Arlington.

They are:

• Tuesday, June 10, 4 p.m. - 9 p.m.
• Thursday, June 12, 4 p.m. - 9 p.m.
• Saturday, June 14, 10 a.m. - 4 p.m.
• Tuesday, June 17, 4 p.m. - 9 p.m.
• Thursday, June 19, 4 p.m. - 9 p.m.
• Saturday, June 21, 10 a.m. - 4 p.m.

When you go to sign, you'll need to bring a picture ID, and all parties that own the property must sign the lease, the group's Website said.

The group is also expressing frustration that officials for Dale Resources is going around the neighborhood, posting flyers on people's doors.

"The lease they are offering is not a Turf Green United approved lease. This a common tactic used by this company to cause signing date confusion within a united neighborhood. These types of dishonorable tactics are unwelcome and speak loudly on the way Dale conducts business."

Click here for the Website for Turf Green United, formerly known as Sterling Green Addition.

Click here to see what we've said about this group before.

--David Wethe

West FW (Chapel Creek) reports lease offers

A property owner in West Fort Worth's Chapel Creek neighborhood reports receiving a lease offer yesterday from Caffey Group. Offered terms: $8,000 per acre lease bonus, three-year primary term, 25 percent royalty. The neighborhood is west of Loop 820, north of Westpoint, and south of White Settlement Road.

-- Scott Nishimura

CATS endorses Titan Resources/Caffey contract

CATS, the southwest Arlington group representing homeowners immediately east of Lake Arlington, said Monday it endorsed a lease with Titan Resources/Caffey Group and will hold informational meetings at 4 p.m. and 6 p.m. Monday at St. Vincent de Paul Catholic Church, 5819 W. Pleasant Ridge Dr. The CATS lease pays a $26,000/acre bonus and 25.5 percent royalty for a 3-year term (and a commitment to drill within 30 months), said organizer Jim MacDowell. He said the extra half-point royalty came from the owner of a planned drill site, near Bowman Springs and Shorewood, who contributed a portion of his override on the lease. Titan is affiliated with Hollis R. Sullivan, MacDowell said. He said the deal was the outcome of discussions with five parties that eventually came down to Titan and Paloma Resources, acting on behalf of Chesapeake Energy.

-- Jim Fuquay

SW Arlington group gets $16,850-per-acre bonus

SWAPO, a group representing several southwest Arlington neighborhoods, reports it's negotiated a lease agreement with GMB Professional Land Services on behalf of Paloma Resources that calls for a $16,850-per-acre signing bonus and 25 percent royalty. The signing bonus is the highest thus far anong neighborhood leases in the Barnett Shale.

Click here to view a map of SWAPO's coverage area. The group says the area is expanded and now includes neighborhoods from U.S. 287 and Eden Road on the west, Sublett and Collard roads on the north, Hardisty on the east, and Curry Road on the south. S.J. Stovall and Allan Saxe parks are within the area.

SWAPO stoked competition for its leases from Paloma, Dale Resources on behalf of Chesapeake Energy, and Caffey on behalf of Hollis R. Sullivan, which has been signing leases in south Arlington and Kennedale.

Update: Click here for the full Star-Telegram story on this deal.

-- Scott Nishimura

(Photos: Festival at S.J. Stovall Park)