It is going to be very location specific. You’ll need to provide section township and range to get a valid answer.
What are the typical bonus’ and terms for Carter Co? What is Continental offering?
Does anyone have some information on the Davis No. 9 and No. 10 wells Kodiak Oil and Gas intend to drill in Section 9-2S-2W? Was there a pooling order?
Blake, Read the forum rules please. This is not the place to advertise.
Thanks M Barnes!
Carter: XTO Energy Inc.; Eva Mae No. 1-35H Well; NE1/4 SW1/4 SE1/4 SW1/4 (SL) of 35-03S-03E; 194 barrels oil per day, 767,000 cu-ft gas per day; TD 15,882.
XTO Energy Inc.; Sammie No. 2-33H Well; SW1/4 SE1/4 SW1/4 SE1/4 (SL) of 33-03S-03E; 309 barrels oil per day, 2,150,000 cu-ft gas per day; TD 16,864.
XTO Energy Inc.; Sammie No. 3-33H Well; SW1/4 SE1/4 SW1/4 SE1/4 (SL) of 33-03S-03E; 470 barrels oil per day, 2,892,000 cu-ft gas per day; TD 17,338.
John Travis, Order # 97490 May 20, 2013 set up the Wildcat Jim Unit for management of the Hoxbar-Deese reservoirs- so unitization, not pooling. The Davis 9 and 10 were only permitted on August 4, 2014.
http://imaging.occeweb.com/imaging/OGWellRecords.aspx
You can look the permits up on the above link.
Dear All,
New member here. I have some acres at the:
NW/4 NE/4 NW/4 of Section 17, in Township 3 South, Range 3 West of Carter County. I’m 2 years into a 5 year lease of my acres and have heard nothing about that area. Lately, I’ve been getting lots of offers to sell my mineral rights. It’s very tempting to sell but I get a sense that this area may have some productive plays. FYI, my great grandmother had 40 acres in Carter Co. in the 1920s to 1960s. At one point in the 30s she was getting $10k/month in royalties, according to my mother. I recall hearing from my grandmother that the region soon went dry and a lot of older wells were capped. Any comments? Thanks. Scot
Jennifer, Spring Operating Company is active in Section 34-2S-3W. That is an older field and is spaced differently than the horizontal plays. Depending upon the location of your acreage, you may already be held by production so are bound by the terms of an earlier lease.
Scott, There is little doubt that your lease will be drilled. CRI has a nice horizontal Woodford well on the south border of Section 17. Right now any offers will be risk adjusted and speculative. If you have the patience to hold until you have at least 12 months of production behind you before selling, you will get close to fair market value. I don’t think the offers will go away because the probable operator is one of the best.
You realize that you only described 10 acres in your post. Did 30 acres get sld too soon? Spacing will most likely be set at 640 acres. Hang on. You’re a part of the new oil business in Carter.
Gary Hutchinson
I still have no idea why Citation was so anxious to buy my minerals in Sec 30, 1S, 3W a few years ago. Anyone have any idea?
Thanks, Janet
Dear Gary,
Greetings! Yes, I know the gross is 10 acres, but I only have 2.5 of that (small fry). I’ve been trying to get some living relatives moving to act on their rights. I don’t know what happened to the other 30 acres. The last offer I received was pretty high. Based on my paltry 3/16% on the 2.5 acres of the 640 acre spacing, I expect quarterly rolyaties to be very small. It would take an unknown number of years of royalties to equal the offer to buy that I have now. Are you saying the offers to by will keep going up as production proceeds?
Thanks, Scot
Sidney What township and range?
Scot, I have noticed that generally the offer does not diminish if you collect royalty for a year and sometimes more. Essentially you get the cream of the crop and the sale price = more money per acre. If you are going to sell, I would recommend cashing some royalty checks first.
Scott, The better the first well, the more wells will be drilled. After the first well, the geologic risk is greatly reduced therefore the certainty of long term income increases to the royalty owner not matter who it is. By taking a bonus on 2.5 acres, you gave up the right to a reward of about $60,000 on the first well but you also have no risk in the right to earn more than $10,000 in royalty from each well drilled. Horizontal wells are rarely dry holes (New oil business rule) A buyer may gamble that the lease will expire and can get at the 60,000/well with the backup that he will at least get !0,000 per well or sell it back to the lessee at a nice profit. If you need the money, sell but only on a limp sum contract. If you don’t need to sell, think about what may haven to the price of oil in the next 20 years. Maybe you want to buy your relatives shares. Its up to you. You are in charge of the royalty at least.
GLH
ron-all in town 4-souty range 3-east.
we have 225 ac in sec 30 and 29 .80 ac is in sec 30-n’2 se4 the lease has just expired any news on that ares. thanks sid
Sid R.D. Williams has been leasing for someone in 4s-3e in 2013 and 2014.
Ron, my brother and I had leases in s34 4s 3e with R.D. Williams for xto that ran out in April. Are they leasing again? We have not heard anything.
They did some leases in 34 in 2014.