I posted a question somewhere. I am new to this awesome site.
I have royalty interest in Archer Co and I have been offered 5K for undivided interest in 30 ac. I am wondering if there is new activity or maybe the new technology has made the field more productive. There has been no productivity since early in 2000.
I live in central Texas, not Archer Co.
I would appreciate any info. Good or bad.
Thanks
Marty,
There is a lot of activity going on in Archer County. 128 drilliing permits have been issued since the 1st of January 2012. These wells range from 300' to 9000' deep. Quite a range. Some of these wells are being drilled where production already exists and others are wildcat wells. Good luck on your minerals. Maybe 1 or more will be drilled on your acreage soon.
Clint Liles
Thank you so much, Clint. Can someone go in and re-work a well to bring it back into production?
I only have undivided royalty on 30 acres but the 1990`s were profitable even with oil at cheap prices. At 86 to 88 per barrel it would be nice to have something happen again.
Your post is encouraging. Maybe I don`t want to sell.
marty
Marty,
Yes, wells can be reworked and put back to producing. You can pull up wells for Archer County by using the link I just posted. Archer County is in District 9. My opinion is DON'T SELL YOUR MINERAL RIGHTS
http://webapps.rrc.state.tx.us/DP/initializePublicQueryAction.do
Clint,
Thank you so much. I grew up in Wichita Falls so I am somewhat familiar with some of the terms. However, I have failed to keep so much of the info because the checks dried up. I think it is in the Moss 200 acres but I have not a clue as to the operator or API number.
I called the appraisal office but they were of little help but did tell me that I owed no taxes related to the fact that there was no production. LOL I guess that`s the only up side to no production. They did say that Pebe has the lease now. I was unable to find that name or anything close in the registry.
My best thought is that this landman and his boss are trying to buy up royalties for a pittance and flip them to investors at a good price. Then they rework the wells and everyone is happy if they are able to bring them back to life. If nothing is there, sorry that`s just the nature of this business. The landman and boss still pocket a nice sum. Perfectly legal.
He is supposed to call back tomorrow (Monday). I think I`ll just say thanks, but no thanks.
Thanks for all your help. You have helped me make an informed good decision.
I`ll call or e=mail you if I get bogged down.
Again: THIS WEB SITE IS AWESOME!
marty
Clint,
I declined his offer this morning. He says he is interested in all,12 or 1/3 or whatever I am willing to sell but his price is not equal to his enthusiasm.
I did learn that the 200 acre tract has been unitized and has been under lease since 1937. My new question to you is how do I find out how long the tract was leased for? Dec marks the 75th year of this lease. Maybe it runs out this year. If so, the lease would be up for grabs, Yes? New lease, new division order or am I all mixed up?
marty
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Clint Liles said:
Marty,
Yes, wells can be reworked and put back to producing. You can pull up wells for Archer County by using the link I just posted. Archer County is in District 9. If you need help doing this email me at [email protected] or call me at 903)2457969 and I will help you. My opinion is DON'T SELL YOUR MINERAL RIGHTS
http://webapps.rrc.state.tx.us/DP/initializePublicQueryAction.do
Clint Liles
Marty, the operative words in an oil and gas lease are " X number of years or as long thereafter as oil and or gas are produced" the lease is forever, or at least until they can't squeeze a couple of barrels/thousand mcf a month out of it. Some companies have been known to claim 1 barrel a month production from wells on which the valve is rusted shut and which could not produce, just to hold a lease.
How interesting! This oil business is very creative. LOL I guess we`ll just keep on with what is. I love having such knowledgeable people at my fingertips. Knowledge is power and you folks surely have knowledge.
thanks for the reply.
marty
RW,
Thanks for answering Marty's question as I wasn't sure how to answer. Marty, I assure you Mr Kennedy is very knowledgeable and helpful on oil and gas situations(he has been down that road and knows the answers). He is an asset to the Mineral Rights Forum. Marty, sorry I couldn't get back to you sooner as I have been working outside this evening on a beautiful day like today has been. And thanks again RW.
Clint Liles
I do have another question. If I`m being a pest, someone please tell me. I`m just so in the dark on this stuff.
Question: How is it possible for this company drill on property that is leased to someone else? I`m curious to know why he wants my royalty interest. It is interesting to note that the meeting was to be with the landman and lo and behold, the big boss shows up with him. Maybe they felt they could do a "double team" and get the deal done. Surely, the big boss has more to do than to be chasing small interest. Is it permissible to drop a name here?
marty
Marty,
By all means let the Forum members know the name of this company so that they aren't possibly done wrong by them. You are definitely not being a pest. The reason for this forum is to help each other if possible.
"Question: How is it possible for this company to drill on property that is leased to someone else?"
Marty, I can't answer your question but maybe someone else can.
Clint Liles
Thanks, Clint for your reply.
I hope I didn`t imply that they are doing anything wrong. Both gentlemen were very nice, especially the landman. The boss is George Murchison. I checked him out and found that he has 8 or 9 enterprises. He is in Dallas and the general manager of numerous LLC`s. The LLC that he was representing to buy my interest is
MCRE Management Partners, LLC. When you Wikicorporation him you see he has his finger in numerous things.
I guess if he drills and gets anything I will ultimately know about it. I do wish them luck.
I`ve learned more from this site than I would have learned in a three day trip to Archer City. I love it.
marty