After over two years in Flower Mound, Cherokee Horn Production announced that they will be closing their Flower Mound field office this Sunday evening.
“With the Town of Flower Mound issuing a drilling permit on Hilliard, and almost all the leasing work completed for our Flower Mound and Lewisville projects, our work in these areas is done. We are moving on to pursue other projects. It is time for Titan Operating to take over and begin drilling operations,” said Field Claytor, Land Manager for Cherokee Horn.
The Town of Flower Mound approved and granted the drilling permit for the Hilliard Airfield site on August 26th. Titan has 60 days to initiate drilling on the Hilliard site, unless they are able to get an extension from the Town of Flower Mound.
When asked about the current status of leasing activity, Claytor went on to say, “We have taken over 1,723 leases in Flower Mound and 9,000 leases in Lewisville. We are over 82.7% leased in the Hilliard area and well over 92% in our Lewisville projects.”
Claytor said, “After September 5th, Cherokee Horn will no longer be able to accept new leases in our Flower Mound and Lewisville projects so those people who wish to receive royalty income when drilling begins need to sign before the deadline. We are dealing with a surge in leasing activity leading up to this deadline and are working hard to accommodate the needs of all the mineral owners who wish to lease.”
The mineral owners who elect not to sign leases in the Hilliard area will not receive any bonus payment or royalty income, Cherokee Horn officials said.
Cherokee Horn and Titan have a large enough leasehold saturation that they will not have to “force pool” any mineral owners. Force pooling allows an operator to drill underneath an unleased mineral interest, however in a force pooling situation those unleased owners receive a royalty payment of 20% to 25% when the well begins producing and then will back in for the remaining 70% to 75% after the operator has recouped their investment. Since Titan will be able to drill around the unleased owners, they are not obligated to pay the mineral owners anything.
“This is what we’ve been telling the mineral owners for a long time. There is a lot of misinformation out there and we are constantly trying to counteract. We want people to know that they have a choice but if they choose never to lease then they are foregoing any financial gain they could hope to receive from their mineral interest,” Claytor said
Cherokee Horn’s field office is located at 1011 Surrey Ln., Bldg 100, Ste. 201 in Flower Mound and their phone number is 972-539-1412.