On October 17, 2022, the Receiver filed a motion seeking Court approval to (1) enter into a farmout agreement with SDMB Resources LLC, THXMT, LLC, and Atoka Operating, Inc., as Farmees, with respect to the Receivership Estates’ Crockett/Val Verde leases and (2) pay $25,000 to extend the Carson leases. In summary, the farmout agreement would (a) extend the primary term of the I.W. Carson leases dated December 31, 2018, to March 31, 2023, in exchange for a payment of $25,000; (b) create the opportunity to have one or more of the existing wells begin producing; (c) provide a 50% carried interest in existing wells until recovery of $5.5 million; (d) provide a mechanism to give the Receiver a potential for upside returns by participating to the extent of a 7.5% cost-bearing working interest in any wells drilled after the carried interest is fully expended (but without an obligation to do so); and (e) install a knowledgeable and competent operator who satisfies the concerns of the lessors to such a transfer.
A link to the Receiver’s pleading can be found on the Key Court Documents page here. The website will be updated once the Court sets the Receiver’s motion for hearing.
The Court set the Receiver's motion for telephonic hearing on November 8, 2022 at 9:00 a.m. A link to the order setting hearing is here.