I just received the following letter from Energy Twenty-Nine, LLC in regards to a potential(?) clash between Native Exploration and Continental Resources:
To Whom lt May Concern:
NEO Operating, LLC f/k/a Native Exploration Operating, LLC is contending for operations in the
captioned unit and below detailed Cause Details. As the result of the hearings has an effect on the
development of your interest, we are requesting your support to name NEO Operating, LLC as the
Operator of Section 1 and 12 for our proposed plan of development. NEO Operating intends to drill
two (2) Woodford wells in Sections 1 & 12-7N-4W while Continental Resources, lnc. plans to drill
one (1) well in Sections 1 & 12-7N-4W. Please find enclosed Letter of Support for your execution
and return envelope for your convenience.
Spacing
CD No. 2022-004015 Section 1
CD No. 2022-004104 Section 12
Pooling
CD No. 2022-004749 Section 1
CD No. 2022-004750 Section 12
MUH
CD No. 2022-004109
CD No. 2022-004113
Location Exception
CD No. 2022-004111
CD No. 2022-004115
Increased Density
CD No. 2022-004026 - Section 1
CD No. 2022-004116 - Section 12
It ends with:
The undersigned, as an owner of royalty interests in the proposed unit comprising of the
above described lands, which interest and lands are subject to proceedings pending in the captioned
Causes, do hereby state and enter for the record their support of NEO Operating, LLC f/k/a Native
Exploration Operating, LLC as Operator and plan its development in any and all of such captioned
causes.
I’m scratching my head wondering how this is even a “please vote for me” issue instead of having already been handled by the OCC on a first come, first serve basis.
In any case, am I legally required to respond to this? If so, what’s the best choice? Is it just the obvious “two wells are better than one”? or is there more to it?
Any help is much appreciated–this is (once again) new territory for me in my almost nine years of dealing with oil and gas companies.
I also received a few of these recently. First time for everything. One cannot assume that the one operator will only drill “one” well or that the other operator would drill as “many” as they say they plan to. I am not sure owners responding would sway one way or another since this is so new. Personally, I would go for the operator that had the best sales contracts (hard to find out) and was the most competent.
I Would choose Native Exploration. They recently drilled two horizontal wells in Sec. 34 T08N, R04W/. Charles #2 and #3 wells.
Both wells have been very successful. May be even best production of any wells in this play. Decline rate has also been lower than other shale wells in the area.
My husband has a lease with Anniston working for Continental on Section 12 7N 4W in Mcclain County. Would we be in conflict with Continental if we signed this form oking Neo to drill and sent it back? We don’t want to do anything that would conflict with our lease.
My personal opinion is you would rather have Continental drill wells where you own minerals than NEO.
But, you can support whomever you want and there is no conflict with your lease unless there are terms in the lease stating such. And very, very doubtful Annastin is working for Continental.
I prefer the devil I know vs the one I don’t was a common saying from my dad. I’ve had leases switch operators because of ownership sales. Then watched operating costs go crazy. I don’t have an issue with Continental.