My father recently found out that he inherited some mineral rights in Payne County. The way we found out that he even had them was Calyx Energy sent an offer for a lease of the rights. I am trying to do some research for him (as he is not computer savy). Any type of information regarding this would be very helpfull. On the lease it states that the area he has is:
SEC 03-17N-03E, does anyone know anything about past production or activity in this area? Or have any type of advice? Please help if you can. I will provide you with as much information as I can, I really don't know anything about this process, so I am not sure what all you need to know. Thank you.
Jaycie I think I can help. If you would like to call accept my friend request and I will give you a #. Or if you would like I will try to help you here. I will look and see what I can find.
Calyx has brought in several producing horizontal wells in the general area (a mile or so east and north). They are the primary player in the area, and in my experience have been good to deal with. On my acreage to the east they worked thru Universal Land Services to obtain the lease from me.
They offered a range of deals. The higher the signing bonus, the lower your share of the oil if they hit oil. I chose to forgo the signing bonus entirely and take a 3/8 share of the oil. My cousin negotiated a little better and got 1/4 share with no bonus.
With a horizontal well you get paid for your portion of the oil under all 640 acres in the section. So, if you sign a lease for 1/4 and your father has half of 40 acres, your portion would be 20 net acres/640/4 of all the income from the oil produced by that well.
Calyx does mostly horizontal wells, but an alternative could be that they drill only on your lease. In that case you would get 1/4 of all the income from your net acres on the lease. Higher income but less chance they will hit oil. Almost all the good wells are horizontal these days. You have no control over whether it is a "pooled" horizontal well or not. The state of Oklahoma decides that.
Just to give you an idea what can happen, After I signed the lease, I got a notice that Calyx applied for a "pooling order" from the state, combining the 640 acres in the section. The well came in about a year after the last leases were signed, at 250 barrels a day, but rapidly declined to 25 to 50 barrels a day. Not a fortune but a nice little check each month. Some of Calyx wells in the area have done better than that. If you have questions about what land you own, a useful site is okcountylandrecords.com.