Is there any action around these two sections? My brothers and I have mineral rights we’d like to sell.
18-16N-13W. Newfield had cases for 17&20 for horizontal wells, but they were dismissed (probably due to the sale to Encana). However, they continued with other cases for horizontals in the township in 2019.
4-17N-12W There has been some leasing in section 4 in 2019. Council Oak just pooled section 4 for a horizontal well in the Morrow sand.
One lease in 4-17N-12W and Council Oak pooling went off at $400 and 1/8. That seems to indicate pretty low values. No leasing around 18-16N-13W lately but CLR has filed an intent in offsetting section so thats a good sign. Rickde, Im curious if you have had offers in those areas. I have minerals around both of your sections.
I haven’t in a while which is why I’m asking . I live in Washington state, so I’m kind of away from the action.
Thanks! Your information is always appreciated.
Hi Stewart. I’m Lariokie, Rickde’s brother. I just got a phone offer this morning from Cockrell Energy in OKC on 4-17N-12W. I looked them up but there was little or no information on their web site. One of their people offered $600/acre for these minerals, but I told him no deal. As Rick mentioned we also have some in 18-16N-12W, so I told him we would only sell if we could sell both pieces together. He is supposed to get back to me with another offer. I’ll keep you posted…Larry
Thanks for this information Martha. This is Lariokie, Rickde’s brother. We always appreciate your perspective on this forum. I got a call from Cockerell Energy in OKC this morning with an offer of $600 an acre, but of course I turned it down. Do you know anything about Cockerell? I looked up their web site but there is only a faceing page with virtually no info about them or their business. I am slowly learning to hold my fire until I have done a bit of due diligence, given there are so many flippers and shady players out there. Any info you could provide would be appreciated…Lariokie
Just an FYI. On Dec. 4 I had a message from Cockerell Energy, LLC saying they were interested in buying my mineral rights in Kingfisher County. I sent them information on the minerals and got a message back that the fellow would get right back to me but haven’t hear from them again. I also don’t anything about them other than seeing their web page.
Blaine is not as hot as it once was, but who knows the future.
18-16N-13W. You have horizontals on three sides of you. Spess is holding the NE corner of the section by a very old well.
4-17N-12w Council Oak Resources just pooled in October, so have a pending well for the Morrow. They plan to recomple tthe Haigler 1-2H. They have already started the work. They want your royalties for the new zone.
Personally not too fond of companies that don’t list their principal owners. Small mineral buying firm since 2017. If I were to sell, (which I don’t so far), I would get several bids from companies that are transparent and say who is funding them, who their escrow third party is, put down an earnest amount, have a neutral third party such as a bank or attorney’s office hold the earnest money and any signed deed until the full amount is received (upon satisfactory title work) and deposited. Then the deed is turned over. First offers are usually low in my opinion.
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Good info, Martha. You are right about Blaine “cooling down”. We used to get several offers every month, but very few now and low ball offers at that. The Spess lease holding on 18-16-13 has been a problem. They are impossible to deal with. Don’t know how to crack that particular nut. I haven’t been terribly excited about Council Oaks who we leased our interest in 4-17-12. They are slow in sending royalty payments–in fact we didn’t get a payment for November or December yet. And their Revenue Summary Statement is nearly impossible to understand. I have a friend who is in the business in Oklahoma who was not able to figure it out either.
Thanks so much for your response to our query on this forum.
Lariokie
Stewart, so far I have not heard anything else from Cockrell about 4-17-12. I assume they are flippers and are just looking for cheap minerals to turnover to big players.
Hey Larry- there are not any “big” players left buying minerals in Blaine. That ship has sailed. Sad for those that were told that all offers are lowball and are now left with poor producing wells. Good luck to you in the New Year.
Cockrell sent me a message and said they would get back to me about my minerals in Kingfisher County, in the meantime I got an offer from Great Southern Minerals in Louisiana. The offer was pretty low and they won’t budget on it. As Todd said, it looks like the ship has sailed, at least for the time being, on offers from big outfits or almost any offers for that matter. It obviously has to do with too many wells drilled that are mediocre producers. I think many of us are in the position of trying to decide if we’re willing to take some pretty low offers or hold on to our minerals getting some monthly royalty checks and hoping for things to get better. The down side is that almost everyone I talk to in the business says that it may be a long time before (IF) things improve at all.
Thanks for that information, albeit not happy info.
I don’t think there is ANY good news in the oil patch and those of us who have been jerked around by less than honest buyers, landmen, and others during the past year are suffering. A number of oil professionals have told me that is business as usual in the oil business, it’s not fair, it’s not honest, it’s sad for mineral owners but as Todd says the ship has sailed and we’re left standing on the dock!
Martha, my brothers and I are at the end of the third year of our 3 year lease on Blaine County S4 17N 12W, which has been held by Council Oaks Resources (COR). They sent us each a packet with two copies of a new Division Order. Do you know why they would need a new Division Order? I don’t recall having to sign new Division Orders on other minerals we’ve leased. This one has additional language that differs from the original, such as Indemnity, Disputes-Withholding Of Funds, Termination, and Notices. Because the language is somewhat different and I have not received a royalty payment in two months, I am not sure what to do with this Division Order. Do you know anything about COR? They have not sent a royalty check for two months.
S4 17N 12W, The first three years of your lease is called the primary term. The operator has the option, but not the obligation to drill in those three years. They chose to drill the Haigler 1-4H which moved the lease into the secondary term. It is described in the lease. Usually it says something like “as long as there is production.”
I will not sign a Division Order that has extra terms and conditions on it. If the decimal amount on the second DO is correct, then I will send a NADOA approved division order back instead of the longer company one. Oklahoma does not require a DO to be signed to get paid (unlike Texas). But I find it a good idea to make sure that the decimal is correct and give my heirs a paper trail. Also good to send the W-9 so you don’t have federal taxes taken out (unless you want them to take them out.)
0_NADOA_Division Order Model Blank Form 2017v 2.pdf (78.2 KB)
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Hi Martha, thanks for the information on the DO for Haigler 1-4H in Blaine S4 17N 12W. I signed and sent it in with the 1099 IRS form before I saw your response. I should have checked back sooner. Why do they send a new/different DO? I always though it just covered the boiler plate. I was surprised to see it was different language. I did check the decimal amount and it is correct. Anyway, we haven’t received any royalty checks since August of 2019, but I assume the amount has not reached the amount of $100 as per the oringinal DO. Seems that well is playing out.
Martha, I got my mailed Division Order for 18-16N-13W back as undeliverable to the address COR provided. This gives me an opportunity of a redo. First, do I need to sign a new DO at all? Second, since we are now beyond the June 13, 2019 end of the original 3 yr. lease, is COR required to pay for additional lease extentions? I am concerned that we have not received any royalty checks for six months, yet they want me to sign a new DO.
The Haigler well was sold to Staghorn Petroleum II LLC on Feb 4, 2020. When there is a new operator, they will frequently send out a new DO.
Here is the new address.
http://imaging.occeweb.com/OG/Well%20Records/005905FE.pdf
You can re-set the minimum amount to be $25. They did have production as of Dec 2019 9not much). Contact Staghorn to get back into pay status.
No, if a well is in production, then the lease moves into the secondary term of the lease and the option to extend is not longer valid.