Seaport Section 14 and 23. Continental. what gives?? We have 90 oil and you aren’t drilling on our land you leased. What is the holdup?
14 & 23 -2S-3W Continental drilled the Seaport 1-14-23XHW in 2021. Active date was 4/26/21. Contact Continental if you have not received a Division Order by now. First payments probably went out in October or November.
I am curious about the Seaport section 14 as well. I did receive division order and several checks already, but the phone calls/offers to buy have just started up again as well.
Is there something new pertaining to this section? Also, what are the most important things I should be aware of as a new mineral owner and where might I find that important info for future references?
I have learned a lot on this forum, but seems to be just a drop in the bucket of a very complicated business.
Thank you!
If you are getting offers to buy, someone knows something. Continental is very active in that area, so they may be planning infill wells. Most buyers either buy for themselves or to flip. They like to buy current royalties or “ahead of the bit” for infill wells. Continental also uses mineral companies to buy for them under another name. If there are official new wells planned, you will get the mailings from the OCC. Make sure that your have your name and address properly filed with the county clerk in Carter so that they can find you to send the mailings.
If you are a new mineral owner consider reading the Mineral Help tab above. Consider reading the posts in your counties where you have mineral rights. The Oklahoma Corporation Commission has helpful guides. Here are some helpful websites.
Pending OCC cases at the following link: http://www.occeweb.com/caseprocessingonline/default.aspx Actual cases if you have the case numbers: http://imaging.occeweb.com/imaging/OAP.aspx Docket proceedings: http://www.occeweb.com/ap/docket_results.html Well activity: http://imaging.occeweb.com/imaging/OGWellRecords.aspx Production: Gross Production Deeds, probates, etc. -www.okcountyrecords.com
The National Association of Royalty owners has an Oklahoma chapter. They are having a convention in OKC in May. Great place to hear relevant topics and network with other mineral owners.
M Barnes,
Thank you so much for all of the great info!! I thoroughly enjoy reading your responses on so many different topics. I also love the idea of a convention, but I live in Texas and just have the minerals in Carter County, Section 142S3W, specifically.
I really appreciate all of the links that you provided as well. I am still trying to learn exactly what it is that I’m looking at and looking for, but hopefully soon I will get a much better understanding of it all.
One last question for you, if you don’t mind, could you explain “infill wells” and what that could mean if that were the case?
Thank you so much for the response!!
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Infill is additional wells for the same unit. Think of it as filling in the undrilled acreage for hydrocarbons that won’t get produced by the existing well(s).
Todd M Baker,
Excellent! Thank you for clearing that up for me! That was the first time that I had heard that term. There is sooo much to learn about all of this. Thank you, again!
To give you a visual, many times the first horizontal well is drilled either on the far east or far west side of a section as close to the lease line as legally allowed by the OCC. That is the first cigar in the box. The infill wells may be the other cigars lined up at regularly approved intervals to fill in the rest of the box. Sometimes you have wells in more than one reservoir, so they may stagger. Time will tell.
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M_Barnes,
Thank you for that visual. That makes sense. And yes, time will certainly tell. It’s definitely a very interesting business!
Thank you so much!
It is very common for these operators to lease minerals and never develop them. Oil may be $90 today, that doesn’t mean it will be $90 next month or the months following. Your section is also held by a predominantly gas well, producing next to no oil, however the price of gas is up so that is a positive. The entire township of 2S-3W is under developed as far as horizontal activity in comparison to some of the surrounding townships, which means one of two things. It will be developed more in the next couple of years, or it’s not as profitable as operators were initially assuming, which is the case with a lot of Oklahoma. My assumption would be the latter, considering theres not one section in 2S-3W that has infill drilling.
Another thing to consider is timing and economics. Many operators spend a good bit on leasing on wide areas where they think there will be good potential to drill. Then they will drill the first horizontal well (parent) in many sections in order to hold the acreage by production in all those sections. For sections that make economic sense, they will come back and drill the infill (daughter) wells. Over the last few years, companies have moved from a huge growth mode (and getting a bit too far out over their skis by over-borrowing and over-spending) to a more modest “live within your cash flow” which investors prefer. Spreads out the drilling in time.
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ErnstStavro,
It definitely seems to be a roll of the dice! Thank you for your perspective on this! As M_Barnes stated, time will tell.
M_Barnes,
That all makes good sense. I am patient, I can wait to see what happens. Sure hoping it goes that way though! Thank you for all of your knowledgeable input! Much appreciated!
All. Ms.Barnes is providing very good advice here. Though WI investors may state a project to be dead and that they have lost capital if you are still receiving offers someone does know something. The OK oil/gas business is a small community. Be cautious and assume that if you continue to receive offers, it is likely for a good reason. Thank you, Ms. Barnes, for this advice to the readers.
Hi, Firecracker. I was told by someone purporting to be an active investor of the project that it was a failure. However, I continue to receive offers to sell as well. I’d be cautious with any offers. I personally do not believe the project is done as the company would have already plugged its wells and moved on to save costs. Furthermore, it is known that operators can make offers to purchase your MI using third-party names to increase their royalty in projects. I am not pointing specific fingers, as I have no evidence, but know that OK continues to be a place where small mom-and-pop landowners are considered “uneducated ocal yocals” and can be taken advantage of. I personally know from experience OK MI owners are very savvy after generations of being taken advantage of (since the early 1920s). I would also advise considering hiring attorneys in Texas that have the ability to operate in OK as I find the oil/gas business community to be very “circle the wagons”. My two cents. J
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