Thompson & Knight’s Oil and Gas Practice Group conducts numerous due diligence projects each year for both buyers of oil and gas properties and lenders in connection with credit facilities secured by oil and gas properties. We have experience in reviewing properties located in nearly every state that has significant oil and gas reserves. Our role in each transaction is tailored to fit the needs of our clients. In some transactions, we conduct all aspects of the due diligence. In other transactions, we work closely with a land service company engaged by our client or with the client’s in-house land department to complete the due diligence.
Thompson & Knight is experienced in all areas of due diligence for oil and gas properties. We are experienced in reviewing the land files of the seller and confirming the represented working interests and net revenue interests. Thompson & Knight typically reviews all of the material contracts, including joint operating agreements, marketing agreements, transportation agreements, and prior purchase and sale agreements of the seller, being assumed by the buyer. We help our clients understand the obligations they are assuming and any unique provisions in the contracts that may hinder our clients’ development of the properties. When third party land service companies or our client’s in-house staff are conducting the review of the seller’s files, they typically seek our review and advice regarding any unique contract provisions or troublesome title issues. We work in conjunction with our clients to determine whether or not any defects will be asserted and to prepare the title defect letter in accordance with the terms of the purchase and sale agreement.