Any information if Continental will drill in this area? Thank you!
1 Like
Continental had cases at the OCC for wells in the area. Some were approved and some were dismissed. You should be getting mailings from them if your name and address are properly filed in the county courthouse along with a description of acreage. If you are not getting the mailings then contact Continental’s attorney.
CONTINENTAL RESOURCES, INC.
P.O. BOX 269091 OKLAHOMA CITY, OK 73126
Contact Name: JESSICA D. HATCHER Contact Phone: 405-996-3395
Thank you! Something must be happening as recieved offer of 5,500 an acre to sell
Also they tell you their offer is more than you can make in the lifetime of the well! How could they possibly know that?
Subtle difference in language there. They may tell you what you would make from their offer over the lifetime of the current well, but what they won’t tell you is what the potential of the acreage value is with infill wells. Many offers are sent out when increased density cases are posted as they hope to capture acreage for cheap before folks realize other wells are about to be drilled. It is their business to know that good potential areas and where additional drilling may be likely. They fully intend to make a profit off of purchases. They may or may not succeed.
It is our job as mineral owners to stay informed as well. We also may or may not know the right timing to sell or not sell. Each family has their own situation to consider and how they value the asset.
Producing wells are fairly easy to predict on the ultimate volumes that they will produce. Infill wells may do better, but many do a bit worse depending upon interference with each other. Pricing is the unknown, but buyers use pretty sophisticated pricing models and know about what to expect. Then they factor in a discount amount for timing of wells, time value of money, risk, etc.
M Barnes is spot on. You normally assume the buyer is making an offer based on projected volumes, price, and operating costs.
But sometimes the buyer has other financial considerations–like buying minerals for a fund that has private equity or public money. Those decision makers are motivated by commissions and what they can convince their investors the minerals are worth.
Thank you both so much for your knowledge & responses! Very grateful for your help!!!
Garvin sect17 Receives a court document for pooled interests for a planned well for continental Received document 4 months ago was a we’ll drilled?
Please give the complete section, township and range.
This topic was automatically closed after 90 days. New replies are no longer allowed.