XTO Energy, Aethon affiliates sign agreements to revive Shelby Trough growth

XTO Energy Inc. and Aethon Energy affiliates have signed separate deals with Black Stone Minerals LP to reduce royalty rates as Black Stone looks to revive volume growth in the Texas Shelby Trough area.

XTO entered into an incentive agreement with Black Stone for certain drilled but uncompleted wells (DUCs) in Black Stone’s Shelby Trough acreage in San Augustine County, Tex. The agreement allows for royalty relief on 13 existing DUCs if XTO completes and turns the wells to sales by Mar. 31, 2021, Black Stone said in a release June 12.

In May, Aethon Energy affiliates entered into a development agreement with Black Stone for undeveloped Shelby Trough Haynesville and Bossier shale acreage in Angelina County, Tex. The agreement provides for minimum well commitments in exchange for reduced royalty rates and exclusive access to Black Stone’s mineral and leasehold acreage in the contract area, according to a May 5 Black Stone release. The agreement calls for a minimum of four wells to be drilled in the initial program year, which begins in this year’s third quarter, increasing to a minimum of 15 wells/year beginning with the third program year.