Hello: My family has leases in Kingfisher County Township 17 North, Range 07 West. We've received a dozen letters offering to buy, but we're hanging on. I have to admit I wonder if this is smart. Does anyone think the land will produce money in the next year?
In general, the more offers you have to buy, the more likely there is to be activity soon. That section has 144 regulatory applications filed in the last 999 days. Mostly Newfield, Payrock and Chaparral. 16 permits to drill within the last 999 days. If you want to post the section, then I can be more specific.
This is really a decades and generations decision because of the potential of multiple horizontal wells, so take the long view if you can.
Thank you so much for your informed reply! Much appreciated.
Range 07 West, Section 13.
Look up the following docket #'s on the OCC website
http://imaging.occeweb.com/imaging/OAP.aspx
Look especially at the Applications with "CD" after them and the Exhibits.
Chaparral is planning to drill a well, so is getting all of their ducks in a row. Come back if you have questions.
201600008
201600007
201600100
201600328
If there is not a hole in the ground as of today, there is zero chance you will be receiving royalties within the next year.
I agree with Trent. If there is not already a drilling rig in place, on the land, you won't see any royalties in the next year or so. It typically takes 2-3 months for them to drill and complete a well (and completing these wells is being delayed many months right now due to low commodity prices - companies are just taking their time and aren't in a rush). After a well is completed, it may take several more months for them to actually start producing, perhaps due to pipeline delays or they may encounter completion problems. Once a well is actually completed for production and there are no further delays, the company has 6 months from that point before they legally have to issue any royalty checks. So it's a lengthy process to say the least. And even then, companies often times do not start issuing checks right at the 6 month mark after completion. They usually delay further (and may have to pay some interest if they do).
Remember that an offer to buy right now is going to be lower than the probable real value of the minerals as there are many companies taking advantage of the low prices. This is not a one well deal, it may lead to other wells in the future when prices are higher. This is a long term business and not a short one. Waiting for a good well to come in is worth the time. I have seen offers to buy in this general area double over the last year and they are nowhere near what the underlying value is.
Nancy, please friend me so I can send you a private message. I have sent a request
Thank you. I don't want to let go of these for less than their value. But not looking forward to chasing after a company for tiny amounts years down the road either.
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Nancy,
I am very familiar with this area and would be happy to help you with any questions you may have. In the meantime below is a link to our company website. This may be able to assist in answering some of your questions. Many people are out trying to lure mineral owners with "low-ball" offers, so you must be careful. Please let me know if you have any questions,as stated I would be happy to assist you with any questions or concerns.
Kind Regards,
Ryan Williams
(432) 638-6185