I am curious as to what is happening in Canadian County around Section 10, Township 10 north, Range 6.
I know Red Wolf acquired the rights from Apache, but we have not heard anything further. We have had inquires to buy our mineral rights of 80 mineral acres but it appears things have stalled.
Any information appreciated.
BH
Current activity has slowed to a crawl due to the supply & demand imbalance caused by the Saudi/Russia power play and the Covid-19 drop in demand. Your minerals are in an area that had quite few permits for horizontal drilling in the surrounding sections. Red Wolf bought out the Apache acreage there. Most operators have slashed their operating budgets for this year and are waiting until the prices rebound to a level where it makes sense for them to drill. As there are only 10-11 rigs working at the moment, we will have to wait to see what the next few quarters look like. There are mineral buyers who are looking to buy during the depressed oil price time and are holding for the future.
Thanks, I always appreciate your responses. BH
Does anyone have any information about drilling in Canadian County Section 2911N-8W. I have been offered to lease this section and want to know a fair price. Thanks
Most offers to lease usually start somewhat low with room to negotiate up a bit. If they only offer 1/8th-decline, 3/16ths, ask for 1/5th and 1/4 offers. The terms and clauses in the lease are more important than the bonus. The initial draft lease will not be in the mineral owners’ favor and will need negotiation.
That being said, this section was pooled last year for $7100 3/16ths, $7000 1/5, $6000 1/4. Have you been getting all the paperwork from the attorneys? It was recently granted an order to extend that pooling another six months since the well was already spud, but not completed due to COVID. You may want to contact Cimarex if you recently inherited. Here is the attorney attached to the pooling order. Your interests may already be under lease or pooling.
CIMAREX ENERGY CO. 202 S. CHEYENNE AVENUE, SUITE 1000 TULSA, OKLAHOMA 74103-3001 Contact Name: GRAYSON BARNES Contact Phone: 918-382-8686
Thank you so much. I am checking with the Cimarex group now.
Thank you again. A rep from Cimarex has suggested 250 per acre @ 1/5th, but if it pools it should be much higher, right? Last year the pooling was 7100 3/16 to 6000 1/4. I kn ow I could wait it out, but I don’t know what the pooling amount would be. Any suggestions? Thanks
Did you inherit since the last pooling? Did you ask Cimarex if you or your relative was included in the previous pooling or were you leased at that time under your name or another’s name? Did you check the respondent’s list from the recent pooling? Those answers lead to a better answer about possible pricing for a lease or the current pooling.
I was leased until sept.of this year. Where would I find the respondents list from the recent pooling? I didn’t know there was a recent pooling, I thought it would be occurring in the future.
Is it better try and lease or wait for most favorable terms on the pooling order?
are you in the same section? 29-11N-8W?
Ah, that makes sense now. You were ineligible for the last pooling. The Kevin Com 1-29H has already spud. If it were me, I would ask for the 1/4th option either in a lease or in a pooling. I would rather have a long life of high royalties at 1/4th than a bonus that is is only small in comparison.
You can look up the Pooling case. It is 201901321. Make sure your name is not on it. Probably will not be since your were leased. check your lease expiration date and make sure that it was not Sept 1 or 2. The order is in effect as of Sept 3. OAP
If it were me, I would ask for leasing amounts that equaled the pooling amounts from last year. Can’t hurt to start there. Yes, I know oil prices have dropped, but start high. The terms of the lease are critical as they are usually in draft form all in the lessee favor (not yours). If I could not get a good lease, then I would wait for the pooling that they will have to do to catch the expired leases in the interim time frame. $250 seems very low to me as compared to last year’s amounts. If I could get the 1/4th royalty, that is the important part.
How do I find recent pooling activity? Now they are offering 1/4 without a bonus. is that fair?
They can offer whatever they want. Many 1/4 offers are without a bonus. Not unusual. Here are some useful links. The first one may help you find the numbers of the cases that pertain to you. What day did your lease expire last year? If your lease expired on Sept 1, the pooling order was Sept. 2 and I would ask to be included in the original pooling and get the original royalty offer at 1/4th. If your lease expired after, then ask Cimarex when they are going to pool the extra folks like you. At this juncture, I would take a pooling instead of a lease if possible. The well has already spud.
Pending OCC cases at the following link: Case Processing Online
Actual cases if you have the case numbers: OAP
Docket proceedings: http://www.occeweb.com/ap/docket_results.html
Well activity: Test
Production: Gross Production
Thank you so much. Your information is so helpful.
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