Hello, my name is Shirl and I’m a new to this site. I inherited an undivided one-half interest in the oil, gas and other minerals, of I believe, 140 acres Township 03S, Range 01W, Section 29. Back in 2002 (per my aunts papers) the Eagle Land and Minerals Co. /LeNorman Energy Corp. had a permit. but it was expiring, as well Patina Oil and Gas Corp. had aquired LeNorman Corp. Being my aunt health was not good, nothing was done at that time or since that I know of. Other papers that I have ‘the Abstract of Title’ dates back to 1911 when Thomas F Jordan and Carrie Jordan purchased the property. It was lease out in 1913. The Jordan’s family was very close with my aunt.
Then just last week I received a surprise phone call from Okki Energy out of Ok. City, they were offering to purchase one half of my one half interest. I told them I was not interested in selling. However, we talked for quite a while. There offer was $2,000 an acre for 35 acres, or $70,000. Dollars, and they would send me some paper work to go over, should I decided to sell. Well, I received there paperwork b two daysy fedex two days later, however, there letter stated they had done more checking and found several closed or dry wells, and had lowered their offer down to $600. an acre or $21,000. This sent up several red flags.
So does anyone have any advice they could give me? Or know of activity near or around Section 29. Anything would be helpful. Thank You.
Shirl,
It is becoming more common for some companies to play bait and switch. Send out or call with a large offer and then if they start to bite, lower the offer. I would be wary of selling to anyone that called me. They “should” know something or they would not be cold calling.
If you decide to sell you need to market your rights to several companies to make sure you are getting a fair offer.
Rick, I definately agree with you and thanks for the info. The guy must think I’m very ‘shallow’. Say, how does one go about to access these old records?
The guys just called again. I let it go on the answering mach.
The can be accessed here
http://www.occeweb.com/Orawebapps/OCCOraWebAppsone.html
However it is not as easy as it sounds.
E very mineral owner is awaiting a rig on their minerals. Not much to talk about till the rigs move and that spud report from Clint Liles shows up
Shirl,
Instead you can go to here and search on the below numbers and read the documents.
http://imaging.occeweb.com/imaging/OGWellRecords.aspx
01921853
01900789
01921897
01900636
Shirl,
Most of the activity, but all, is up in the North East corner in 1S 2W, 1S 3W, 2S 2W, and 2S 3W, but some interest in 3S 3W with leases in about 1/2 the township. The other area is East of I-35 in 3S 2E,M 3S 3E, 4S 2E and 4S 3E. There seems to be some interest over in Marshall county also. XTO, who I think is the biggest player on the East side has RD Williams as their landman. They did my lease and if I knew then what I know now, it would be a lot different. I had a lawyer in Ardmore help me, as I am in California, and it is the sorryest lease I have seen. Anyway you can negotiate just about everything in a lease. You can also ask for a royalty payment larger than the 3/16 thans pretty standard, if you give up some or all of the signing bonus. As an example they offer you $300 per net mineral acre and 3/16, you may come back and ask for 1/4 and $150 per acre. If the well comes in you will recover the difference probably in the first year or two. Here are some other clauses you would like to have:
GROSS PRODUCT SALES AT THE WELL HEAD -not NET SALES
As short a lease as possible, 2 years in place of 3, and no options for longer periods. This will let you negotiate a new lease.
Try to get a depth clause for non-producing formantions, these means you could get another lease from another company for a different formantion. Woodford is the main formation south of the Ardmore Airport.
A shut-in clause in no good. If they decide to cap the well they can keep the lease as long as they pay you, whatever the lease says, sometimes like $1 per year, per mineral acre. Without this clause they have to produce or they lose thier lease.
I’ll come up with more later.
Shirl,
The earlier wells, up to a couple of years ago, where verticle wells. If the horizontial wells come in there, it will be a big difference. We have a horizontial well in a section where a dry vertical was drilled in 1982? and plugged.
Daniel,
Just a word of ‘thanks’ for all the help you do for Forum Members. I know I’m not the only 1 that appreciates it.
Clint Liles
Terry,
The Felderhoff 28 has been on site, at 7-4S-3E, for about 45 days, so I think it will be moving in the next couple of weeks.
If you want to see what is planned for the next week, on Thrusday look at
ftp://ftp.occ.state.ok.us/dockets/docket/week.pdf
this is the website for the OCC Court Docket. This is where all the Location Exception, Increase Density, Rules Exception, etc take place.
I see records on a few dry or plugged wells in the section. About 3100’ and above. Records are not clear as it was 35+ years ago.
Everything about your encounter with them makes me think he received his training on a used car sales lot. About the only thing those dry wells would show me is that I don’t want to stop drilling at 3100’ where they did.
I was looking a the activity in East Carter Co and I thought things where slowing down. I tracked the Drilling Permits, Spud Reports, and Completion Reports since Jan 1, 2012. I know that the completion may increase some as they lag the spud reports by a few months.
Drilling Permits - 150
Spud Reports - 138
Completion Reports - 28
I hope this is not a trend.
Daniel, I agree with you.
I will lease with a warranty clause that limits warranty to my actions and ONLY my actions.
Participating can be fun as well as lucrative but it is risky. I’ve enjoyed participating on small interests but I’m very selective when it comes to the target zone and also who the operator is. I will not, for example, participate if Chesapeake is operating.
We just finished up the process of leasing our interests in sec 14 and 23 of township 5S-3W to Jack B Smith. Hoping someone will drill a successful well there.
Yes we have an Ardmore attorney who worded it for my brother and I. I won’t disclose which one.
Thanks Rick, I had also seen the ‘bait and switch’ in some other people coments. Both my husband and I stated, "if there is or are ‘dry wells’ then why so much interest? Who in their right mind would offer $21,000 to $70,000 dollars for a dry well, that makes on wonder, is there really is a dry well in the first place? When were they wells dug and how deep and what where they looking for? Many ???come up.
I agree. I believe there is power in numbers, even when it concerns a David vs. Goliath situation when dealing with the oil companies. Thanks to all of you for adding that special contribution that helps us all. Elizabeth Harris.
Ronald,
There is a vertical in the middle of 25 3s 2e that was a dry hole. I think in the future, XTO is going to drill some more horizontial wells there, they already have one producing.
Ann,
Suppose if someone participated in a well, who had 100 acres of mineral rights, they would get 15 5/8% of all products recovered after paying their share, 15 5/8% of the royalties.