I just received a packet in the mail from a law firm (Hirsch, Heath & White, PLLC). The applicant on the form says Continental Resources, Inc and the Relief Sought says 1,280 acre horizontal well drilling and spacing units. The legal description is the area where I own rights. I am assuming this is a good thing. I am new to this as I have inherited these rights. Any feedback would be great. The area is Section 24, Township 10N and Range 9.
Matt:
Yes, good news for this area. Continental and others are drilling. Their interest right now is in the Woodford formation. The package you received is some of the preliminary work that is done prior to drilling a horizontal well with a 2-mile lateral. You should expect more paperwork. I presume that you are already leased, or held by an older legacy well?
It is great news. They're interested in Section 24 and 25. I'm over in 27 with 40 acres of mineral interest just waiting for them to keep coming west.
hello Jim, im ron vance I have minerals in sec 25,5n,11w is this the same area your talking about my family has 30 acres here thx
Sorry Ron, I'm in Section 25 10N 09W. Finally the big boys have crossed the border of Caddo/Grady County. Armor Energy, Continental and a few others. Based on my discussions with industry veterans, the others will soon follow.
thank you Jim good news
Great...yes, I signed a lease earlier this year. I have had numerous inquiries to lease as well as to buy so I thought maybe something was happening. This packet indicates it is. Thanks for your response.
Cimarex applied to the State Corporation Commission for approval to drill a multi unit horizontal well in Sec 1 10N 9w and Sec 36 11N 9W. The drilling is approved and I believe currently underway.
I believe this area is "pooled", but not sure.
It's a Woodford shale common source horizontal well. 50% of the completion interval in Sec 1, 50% in Sec 36. I and other family members have leases with Cimarex.
Sec 1 has drilling/spacing orders in place, Order no. 172284 and 558021. Sec 36 has drilling/spacing orders, order no. 138217 and 560848.
The drilling will/is from the S/W 1/4 of Sec 1, north thru Sec 36, it will parallel Sec 2 and Sec 35. The drilling will start on the S/W 1/4 of Sec 1, which is where we have rights. This drill is proposed into the Woodford Shale Common Source level/area.
This area seems to be getting busy. Mapping shows this location has multi potential and has 3 "layers", it's in the SCOOP and Cana Woodford plays and includes the Mississippi Lime Common Source, the Hunton Common Source Supply and Woodford Shale Common Source Supply. Has three different potential sources/areas/depths to drill.
Does anyone else have any info about this? This area is heating up.
My brother and I have 16 acres of mineral rights located in Sec 1 7N 11W. I hear drilling activity in reference to the Woodford formation and would like to know if there is a map showing this formation relative to the our area above? Can anyone help us on this
Hello and Happy New Year,
Yes this area is getting hot. We have mineral rights in Section 1:10N:9W and have been receiving many offers to lease and or buy our interests. We have kept our rights. As a family we have 160 acres in this area. If you are going to lease your mineral rights you need to ensure that it is from an actual operator (Cimarex, Continental, etc...). An operator is the company that will actually be drilling and operating the wells.
There are numerous companies out there who are non-operators that gladly represent you to the actual operators. The takeaway is this. The non-operators will offer you a cash bonus plus a royalty (3/16, 1/5, etc.). Then once they have leased your rights away from you they then can legally negotiate with the operators on your behalf. The sneaky part is that the non-operators will pay you 3/16 while they are getting a 1/4 from the operator. They keep the rest for themselves and this is for the life of the well.
This may be ok with some of you but I have bad experiences with the non-operators representing themselves as being an operator.
I too have rights in 1-10N-9W. See my post above about Cimarex drilling a multi unit horizontal well in Sec 1 10N 9W and Sec 36 11N 9W. The drilling is approved and I believe currently underway or just completed.
My mother was a Standifer family member, last name was Nelson, she spent time living on the Standifer farm. I believe we are related!
you all should be careful about leasing to Continental. They have no intention of actually drilling this area. Look on the OCC and see how many horizontal wells Continental has drilled in Caddo or southern Canadian county...you'll be surprised. This is after their failed sale last year of about 30,000 acres of 100% term leasehold in this exact area. 10N-9W is going to make monster gas wells, but the oil yield will be very low and the gas will be dry. Economics could be pretty skinny at $11MM well cost for a 2-mile lateral.
Armor is about to go pick up a rig to drill the first two mile well in this township, I would lease to them. They should spud in the next two months.
You should include a strong "commencement of operations" clause so they don't attempt to "hold" the lease by simply pushing dirt around or staking a drilling pad.