I received an AFE in the mail with no cover letter or explanation. We leased our 80 acres back in 2004 ( I believe) received money until 11/2012 when I believe the well finally died. Are we unleased? And what is up with an AFE being sent? AFE was sent from Red Sky but has Continental Resources as operator. Any help is appreciated.
Laura, Continental must have just turned Red Sky loose in Garvin County, lots of new offers. I would call Red Sky for clarification. If the well is no longer producing you should be free to lease again but they would know more than me what the process is.
Thanks Michael I'll try to get a hold of them they were trying to lease our minerals in 34 a year back so I have an email somewhere. Any idea what anyone is getting per acre and at what royalty rate?
Update: My sister received a letter with her AFE that indicates Continental is going to drill in the SE/4 and wants to lease us at 1/8th + $800/ac or 3/16 + $600/ac or 1/4 + $0. Our 80 acre farm is E1/2 SE/4 and this is the same that they offered us a year earlier. Would we be better off waiting to be pooled?
We are in 23-1n/2w and got the same offer or option to take a working interest. I only own a little bit so will probably go for the WI but will wait for the pooling application.
Laura, the only drawback to waiting is if the deal falls through you get no bonus. With 80 acres you have a lot more at stake than I do. Regardless I wouldn’t jump at the first offer either.
Laura, what is the name of the well Continental is proposing?
They haven't named it yet. TBD 1-34
Ours is TBD 1-23H
I had heard the well would also be going across section 27.
Has anyone had any offers from Newfield in this area?
Looks like continental has leases all over this area.
Best offer we have had is 25% royalty and $200/acre. Came from an investor group not Continental, they are hanging tight at 25% and no money. Haven't heard anything out of Newfield ever.
Does anybody have a good lease with a tight no deductions clause?
CR’s the only game in town. They have the majority leased and are looking for anything that is not leased. Sounds like they like what they saw in the Havens. Laura: in my opinion that offer is low, this area is heating up quick now. In Feb. landsman said there was no interest in Murray co. but they are interested now.
When CR gets some applications into OCC case processing we will probably see some better offers. At this point I'm betting we won't see a pooling application before the end of the year.
I thought Devon and Newfield were both in this area as well.
Nope, not down here. Wish they were to give CR a little competition.