Chesapeake Exploration, L.L.C

My mother has an inherited 3/16 of NE/4 of Section 7, Township 1S, Range 8W of 160 acres in Stephens County that back in January 2008 she signed an Oil and Gas Lease with Chesapeake Exploration. I believe they paid her a sum of $400 when she signed this lease but after that we never heard or received anything from them again. This property was purchased by her great grandfather and has been passed down to all the family for years. She used to get small checks by another oil company for years and then it shut down. Can anyone tell me about this lease/company and if she should have gotten payments for anything they drilled?

Kathy, You can go to this website, enter section, township and range and search for all wells in that section and maybe you can find the one that had been producing. According to the OCC database Cheasapeake received a spacing order for that section in 2007 but took it no further and never drilled.

http://www.occpermit.com/WellBrowse/Home.aspx

There is one well producing in that section in the SW/4. Because of the depth, I doubt it impacts your interest. The others stopped producing in 2004 or earlier. Our family had few leases with Chesapeake in the 2007-2008 timeframe in Stephens County. They did not do anything with them and they expired.

Hi Kathy,

I just leased some rights I have in Section 7 today. It is my understanding that there are no immediate plans to drill but I accepted the offer of $500.00 per acre at 3/16th royalty. I hope this helps.

Zachary,

What is the full section? section-township-range for instance Kathy's was 7-1S-8W

Rick

Rick--it is Section 7, Township 1N,Range 6W.....what do you know of any activity?



Rick Howell said:

Zachary,

What is the full section? section-township-range for instance Kathy's was 7-1S-8W

Rick

That is 12 miles east and 6 miles north of Kathy's. When locating the area, you first go to the Township Range. Then the section will be within that 36 square mile township. Actually, I would say it is a good thing as you are closer to the recent hot spot activity than Kathy is. The big activity in Stephens Co is in the 2N 4W area.

We have some production on a section a few miles away from yours (closer to Bray). But I have not been contacted recently about others in the near area. I'm glad to see the interest in the area. I was just doing some record searching in that area this week and did not see much. But it looks like Bearcat filed several leases this month.

Do you mind sharing who you leased with? Bearcat ?

I would guess it will be 12-24 months before we see any drilling. It looks like they are still in the land gathering stage.

Yes, you are correct. The original offer was $300.00 per acre bonus which I was able to negotiate to $500.00. As I am a novice at this sort of thing, I will be depending on this forum for updates and information. Thank you very much for taking the time to bring me up to speed.



Rick Howell said:

That is 12 miles east and 6 miles north of Kathy's. When locating the area, you first go to the Township Range. Then the section will be within that 36 square mile township. Actually, I would say it is a good thing as you are closer to the recent hot spot activity than Kathy is. The big activity in Stephens Co is in the 2N 4W area.

We have some production on a section a few miles away from yours (closer to Bray). But I have not been contacted recently about others in the near area. I'm glad to see the interest in the area. I was just doing some record searching in that area this week and did not see much. But it looks like Bearcat filed several leases this month.

Do you mind sharing who you leased with? Bearcat ?

I would guess it will be 12-24 months before we see any drilling. It looks like they are still in the land gathering stage.

Kahy if your mothers parents died and the oil co. recieved a death notice, but not a notifaction of heirs they just hold the funds in escrow and use the money themselves,you need to enquire about progression of funds.

I appreciate everyone's responses back in June/July and now I have another request. My mother passed away in August of this year soon after I joined the forum. Now I need to know what to do about the mineral rights as to having them split again into 3 for my two brothers and myself. Where do I send her death notice to have this inheritance transferred to us? And to the old lease with Chesapeake do I need to contact them or is it void now? Appreciate any and all advice. Kathy Griffin

Kathy,

I'm sorry to hear about the loss of your mother.

Her passing does not change the Chesapeake lease. It is my understanding the only correct way to transfer the property is by probating it in the state of Oklahoma. Do you have copies of the deeds that transfered it to your mother? Did she have a will?

Rick, Yes she had will that names the three of us as her heirs to be divided equally…but as a twist she put PUD on all assets to myself and one brother however between the market crash a lawsuit and irs she died with no assets left. We are in Florida so by what you are saying I need to probate her will in Oklahoma as well? I haven’t found the paper’s yet that show how or when she inherited the mineral rights but as she never threw anything away I am assured I will find it. Years ago Koch Oil had the lease and she would get small payments from them. My concern is also she changed her mailing address to mine after she had signed the chesapeake lease and I know they never were notified. When it was signed I remember taking her to the bank to noterize it and it included a direct deposit for a sum for her signature. And was the last we heard from them. Oh another question when mineral rights are purchased who owns the actual property? Thanks for the help! Kathy