Thanks for you answer M Barnes! The only knowledge I have about mineral revenue is from an old lease that I’ve had for decades near the old Downtown Airpark. I’ve got 5.9242 acres over there and it paid $556.01 last month. The gas/oil mix was 242.10 (MCF) gas and 433.23 oil. (I think I’m reading that correctly on the statement) It’s managed by Unit Petroleum. I’ve got untapped mineral acres in Canadian County where Citizen Energy is drilling into a new pooling section. I know they are going to drill it horizontal and I believe it’s the only well on that section. I’m guessing the new well in Canadian County should pay better than $93.85 per acre that I’m receiving from my old minerals near the Downtown Airpark. I just didn’t know what might be expected as far as a ball park figure. Thanks
Your original question asked about Woodford common source of supply. I assumed that was related to an OCC document that you received. The rocks under OK are stacked up like layers in a cake. The Woodford is one of those and is under many of the shallower producing horizons. Woodford%20and%20strat%20col%20STACK%20%26%20SCOOP.png Does this picture help you understand it better? If not, then ask your question a different way.
Wollfolk 1H-1720X spud on June 17, 2017.
Nadyne Ice Burress 2H-1720X spud on April 20, 2017.
Generally takes about four-five months to finish, then six months to first check.
See my comments below.
David, No easy answer on that one. All depends upon the geology, the product mix between oil and gas, contract prices that the operator has with the pipelines, whether your leases has post production charges or not, how good your operator is, etc. etc. If they are horizontal wells, the most production is within the first four years and can hang on for decades, so an average dollar per acre over the life is not what you probably want, but it might be. Also, you need to factor in whether it is one well or the potential for many wells, one horizon or many horizons. In Canadian county, it all depends upon where you are, so can’t give you a generic answer.
What is Woodford common sources of supply?
Pamela,
Nadyne Ice is drilled from a pad in the west of center southern part of 17. Goes north but only in 17.
Woolfolk 1H and 2H are two different wells and are drilled from two different pads in the far northeast corner of 17 and go south into 20. Woolfolk 2H-1720X was spud June 11. If you go through your paperwork, there should be maps buried in the back of the horizontal orders. You can also find the permits and pictures on the OCC site. Imaged documents - well records.
I don’t get what woodford devonian shale prolific reservoir means?
http://www.occeweb.com/og/Basic%20Information%20417.pdf
Here is a link to a document called “Basic Information for the Oklahoma Royalty Owner”.
SEC 10-11N-5W
I’ve received lease elections from Chaparral Energy. I’ve never done this before, and I’m curious. What should I do?
M Barnes,
Could you give me some insight on SEC 10-11N-5W? Here are the lease offers I received:
a. $1,000 per acre bonus and 1/8th royalty (87.50% NRI)
b. $800 per acre bonus and 3/16th royalty (81.25% NRI)
c. $500 per acre bonus and 1/5th royalty (80.00% NRI)
Bud,
Thank you. I’ve only received one offer thus far. Also, I’ve inherited the rights. I don’t exactly know how much I own. Is there a way for me to find out?
The easiest way is to ask the landmen who are contacting you. Ask for the Book/page he is getting his information from. Then go get a copy for yourself. Also, you should go to the court house web site and get a copy of the Mineral deed/probate or whatever was used to pass ownership to you. Use the dates of when the document would be and/or names of who you inherited from as search terms at the County Clerks web site. If you live close you can go by the County Clerks office to do the search.
Just don’t let them rush you into signing — time is on your side – the more time you use the higher the offers can become.
Also, use an attachment to the lease that puts you interests first – not the oil companies ( which the standard lease does ) – don’t allow any deductions – none – no Howevers… nothing
Bud, Great information. Thank you!
Good morning,
We have 140 acres in 17-11N-6W. We have received an offer to sell our minerals at $16,000/acre. I believe this is too low but I also don’t make a living in oil and gas. I would like to hear from more experienced folks about what I should expect should we decide to sell.
Jon,
$16,000/ac doesn’t sound low at all, it actually sounds to good to be true. The prices I’ve been seeing are around $7000-$10,000/ac. Do you mind if we ask who is making this offer?
M Barnes,
Thank you very much for this information. I was wanting to explore all my options but your information is exactly what I was looking for. Thanks again.
Jonathan,
Cimarex has spud at least one well and is permitted for three more which is perhaps the reason for the $16,000 offer made by Cardinal Energy.
Jon, Cimarex has Increased density approval for at least one Mississippian well at 3 BCF per well. However, there are 17 BCF estimated recoverable, so that is about 5+ wells for the future. Ratcliff 2-17H is the proposed well. Case 201703228 at the OCC. (You should be getting all of this paperwork from them. If not, then time for detective work.)
You also have an increased density for four additional Woodford wells with ~27 BVCF and 270,000 bbls oil. So about 9 wells in the Woodford. Case 201703227
Wouldn’t you rather have the royalties from those wells over the next few years than selling now? I have acreage in Canadian that has eight wells per section and the final value for all those wells will be about $30,000 per acre over the lifetime of the wells. You may have even more wells in 17-11N-6W here, so think hard before selling… Your gut feeling was right.
once a well is completed, how long does it take for them to make their first sale/pay the mineral owners?
Thank you M. Barnes. I also agree that the reserves information was very helpful. I am on overriding royalty owner ORRI. I am getting offers up to $250,000 per 1% ORRI in 8-14N-9W, which I thought was pretty good but I am not sure now. The operators are taking so many deductions for “gas marketing” that even with these reserves I am considering selling.