Any lease bonus and royalty information for these two Sections? They are about to Pool Section 26-1S-4W OCC Cause CD No. 201805155 and I am getting offers to lease before I am Force Pooled. I am curious what are the lease bonuses paid in this area?
The best and closest comps to your property are: $5000/nma for 18.75% from TODCO, or if you’d prefer a higher royalty, there’s one on sec. 26 for $502 for 25% from Cheyenne. Some other notable names are Echo Energy, Jones Energy, and Camino a little further NW of you.
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I am new to this forum and seeking guidance in evaluating what I believe to be non-participating royalty interests held by my family under instruments created in the 1940s. I have received an offer for mineral interest in section 23-O1S-O4W, but what we have is not mineral interests. I have received notice of Black Mesa Production, LLC’s Application for 320-acre spacing and horizontal drilling in Sections 14 and 15-O1S-O4W. So, whatever interest we own occurs in those three sections. From what I know about acquisitions of interests made more or less contemporaneously with the Stephens County holding, I suspect that the non-participating royalty is relatively small but may extend to a large area in O1S-O4W. I am in Mississippi. What I think I need for starters is a reference to a competent land man who could spend a day in the courthouse to see if it is worth bringing whatever we have into the 21st Century. Suggestions?
R. David Sanders (601) 672-7423
An NPRI is a part of the mineral estate and therefore considered a mineral interest. It’s just been stripped of the executive, bonus, rental and development rights. Either way, you still have a lot a value with it being the royalty portion of the minerals.
If you have trouble finding a landman, you can try to piece together the chain of title online with okcountyrecords.com. It’s a relatively cheap alternative.
I worked with Eric Cox (405) 413-4696 ([email protected]). He is a hard worker for his customers. There are others also good but could start with Eric.
Thanks for the tips. I have someone looking at the title now.
At least two companies have filed for drilling in the section. Only one will be deemed operator (most likely). The lease that they offer first will probably not be in your favor and will need to be negotiated. You do not want any post production costs at all. They may offer an “enhanced” clause, but it will charge post production costs which eat up your royalties. You do not want a top lease clause, or an option to extend for two years. I prefer the highest royalty and don’t care about the bonus since it is very small compared to the royalty in most cases. You need a depth clause, you need to limit the shut in time frame and at least always ask for more than what they offer in the beginning. Go the the Mineral Help tab at the top and read about leasing.
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Any new activity in 26 1s 4w and 15 1s 4w Stephens county?
Black Mesa Production and 89 Energy have pending hearings in 26 for horizontal well(s). You should have gotten the OCC mailings for all of them if you are properly registered in the county courthouse.
89 Energy has pending hearings in the N2 NE4 of 28.
I have not gotten any paperwork from OCC. Section 26 lease signed with Monticello Investment LLC. Guessing they have paperwork? Any info greatly appreciated.
You will only get the official paperwork from the potential operators. Is your name and address properly filed in the county courthouse with regard to this property?
BLACK MESA PRODUCTION, L.L.C. 401 SOUTH BOSTON AVENUE, SUITE 450 TULSA, OK 74103 Contact Name: BENJAMIN J. BROWN Contact Phone: 918-779-6047
89 ENERGY, L.L.C. & ENECO, L.L.C. 105 NORTH HUDSON AVE., SUITE 650 OKLAHOMA CITY, OKLAHOMA 73102 Contact Name: MICHAEL D. STACK Contact Phone:
Have friend who owns minerals in 16-1 South, 4 West in Stephens County. Approached by someone from Rosemary Minerals to purchase the mineral interest. Have you heard of the company and what activity is going on in that area that might affect the mineral interest. Thanks, Morris
When Rosemary called me regarding acreage in that area, they were working for Continental Resources. Continental is trying to buy up quite a bit of acreage before starting to drill a horizontal program. Personally, I am hanging onto all of mine. I found it interesting that Continental posted in one on their recent investor presentations that they would make about four times the return on their purchased minerals. I would much rather keep my leasehold and get that return instead.
Martha,
I believe Rosemary is buying on behalf of 89 Energy/Eneco. Mineral Resource Company is buying on behalf of CLR.
You may be correct. Or it could depend upon the week and who they are working for at what time in what region.
bhiggins , I happen to notice a map of sections in Stephens county that you posted Sep '18.
What website is the map from because I’d sure like to purchase a subscription if not to expensive.
Thank you Debbie
Here it is again. I found it online a long time ago. Not sure it is available anymore. Stephens County Map.pdf (391.8 KB)
@Debbie_Storm That map is a screenshot from a website called Mineral Insight. It is free to use with an account.