Any leasing or drilling around 16 11n 13 west
Lynn The township is 11n-13w
Thanks, Ron…that is good news. I have a Woodford well in Garvin County, but really wonder if the Woodford goes up to Caddo…the maps kinda looks like Woodford is South of Caddo? Rex
Looks like 12N-11W and 11N-11W and 12W have the thickest Woodford in Caddo. The sweet spot in Canadian county is in 13&14N 10W& 9 W like JW said.
8-10 wells per section. Woodford is 200-250’ thick.
There are numerous Woodford wells in 12N-11W, 11N-11W, 12N-12W, 12N-13W, etc which is the topmost NE portion of Caddo County. These have been drilled by Cimarex and Devon primarily. They are pretty good wells, but the area is primarily dry gas. The Woodford exends north from there many miles through Blaine County, and it becomes less dry as you move to the Northeast and into the heart of Devon’s drilling in Canadian County. The Woodford is widespread, and of course the desire to stay away from the dry gas regions drives a lot of things right now.
Thanks Ron. Have not leased our portion yet. Ray
Thank you Ron, I haven’t signed yet with Todco.
Rex, I’m not sure which zone Continental is targeting in this part of Caddo county, but there seems to be some interest in the Hoxbar in this area. Devon recently drilled a horizontal Hoxbar well just to the north in 27-9n-9w, don’t know the results yet. EOG recently completed one in 20-9n-10w, here is the report…
Yes, I have some interest in 19-8n-9w. I have been offered a lease from Turner Oil for $500 acre, I’m holding off signing for now. Turner is an agent for Continental and they leased 4000 acres around Chickasha Lake from the city of Chickasha for $750 an acre.
Scott, thank you for the information…nice well. Do you have interest in 8n, 9w in Caddo?
Jay Here is what the Oil Co. was ordered to pay in the pooling a mile north of you.
I am new to the group and trying to educate myself. I have inherited mineral rights in Sections 3,4 & 9 of 7N-11W. I recently received an offer from Turner Oil & Gas for my holding in Sec 4. The offer is $400/acre 3/16 on a 3 yr with a 2 yr option (not interested in signing a lease with an option). I wondered if anyone can tell me if this offer seems to be in line with the current lease market in the area? Thanks.
I would advise you “Do not do a two year extension. In this current world, that ties you down too much.” Who knows what prices will be like in three years.
The Shut-in clause is typical, but most people like to put a limit on it like “two years consecutive shut-in” or something like that so it doesn’t tie you down forever. (Unfortunately, I inherited some “forever” ones and I only get $1/ac.)
If you don’t lease, you will probably be “force pooled” which means that the company goes to the Corporation Commission to go ahead and get the permission to drill and get you and the others that didn’t lease to make choices. There are advantages to getting force pooled. It limits the time frame to 6 mo-1 year for them to drill, limits to specific horizons and is a form of lease. You get two-five choices and they send you the bonus check. The higher bonus will get you a lower royalty (not as good), the lowest bonus (can be $0 will get you the highest royalty (can be best) or something in the middle if you need cash now. A lot of folks take the 3/16 one in the middle. Moderate bonus, moderate royalty. If the company can’t find you, they will drill and if successful, put the money under your name (they will assign the highest bonus and lowest royalty since it costs them less) into an escrow account with the company for three years. Then it goes to the state and you have to claim it. If it goes to the state, I have found that they take a cut of it and I didn’t get the full amount back.
If you do lease, make sure to get a depth clause, Pugh clause and gross proceeds. Get familiar with this forum and the Mineral Help section above so you are informed. If you have a lot of acreage, you may want to get an attorney. If only a little, then get informed before you make a decision. Don’t feel rushed. They like to use that on new folks. Also, the first offers are usually lowball…
The pooling for section 20-9n-10w ordered them to offer $700 for 1/8 ,600 for 3/16 or no cash and 1/4 . That was in April .
Yes there are many things you need to be aware of . You need time limit on shut in clause, you need a depth clause , no deductions clause and you don’t need to do the two year option . If you don’t lease they will need to force pool you which is not a bad thing. I will look and see what is going on around you.
I have a small mineral interest in Sec 33, Township 9 N, Range 10 W. I have received two lease offers recently, both for a 3 year lease with a two year option, except the from TODCO went further. If the well is still producing, they have a continual lease and if it’s shut-in, for $ 2 an acre, they can still continue the lease even though its not active. I don’t know a lot about leases but these sounds crazy. My 1st question is if I don’t sign any leases and they still drill on the property and it’s producing, does the money I would have received go into an “unknown” account and at what rate. Both of the leases have a bonus signing and a 3/16th royalty. My additional question is " Is TODCO trying to trick me or is this a typical lease now, especially with the shut-in clause?" I would appreciate any information concerning this type of lease or where the money goes if I don’t sign a lease. Also, any tricks from companies that I need to be aware of when looking at a lease.
I have a well on section 17 Caddo county that is liquid gas for now.
Will they ever drill for oil anyone?
section 17 6north 11west
Norwood Land offered $400 a/d 3/16th for 5 years with option to renew for 3 years. Unlimited shut-in term for $1/acre.
Sec. 32 10N 13W
comments are welcome
Steven, I would NOT take those terms if I were you. I never lease for more than three years, never take an option and ask for a two year consecutive time limited shut-in clause. Too much can happen in one year and they are asking to tie you up for eight years. During that time frame you could have leased at least one more time if not two! Risk that prices could go up or prices could go down. Also, check the lease. You want gross proceeds, not net. Also want a really good Pugh clause and a depth clause. If this is their first offer, it is probably lowball, especially with those terms. Nothing has happened in that area in years, so maybe bide your time and see what happens.