Heather:
There have been a few horizontal wells in that township drilled by Mewbourne in the Cottage Grove formation in the last few months. However, nothing on the books yet for section 18.
This is all very foreign to me. I own some mineral acreage in section 31-T15N-R18W. Is anyone familiar with this area? Thank you much in advance~ Tiffany
Mineral owners:
www.okenergytoday.com provides daily Completion Reports and Permits to Drill on the left hand column under the same name.
All other well information for your county including Spud Reports, ownership changes, permits to re-drill, etc, can be found under Royaltiy Owners Corner, also on the left side.
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Miss Tiffany, Duncan Oil is drilling a horizontal well in section 29.
I got a letter in the mail today for section 22 township 14 north range 15 west. Continental Resources is wanting to change the spacing through the corporation commission. What does all this mean
Received an offer to lease in sec 21 for $800/ac. 3/16. Anyone receive another offer?
Charlie what township & range?
sec 21-12N-14W
Dear Mr Hoffman,
It means Continental Resources wants to drill a well on different spacing from a previous OCC order. It means a new well. The pooling application has just been filed and you may get a communication about it, too. It is OCC CD-201604347 and the hearing is scheduled for 10/24.
Our family has been approached about leasing our mineral interest in Custer County by Lowry Land representing Continental Resources. Anyone know what the going rate/terms of these 3+2 year leases are?
Thanks in advance!
Is there any leasing going on around 29-14N-19W
Hap.
$800/ac. 3/16 offer if more that 5 ac. I think $1,000 possible.
Thank you, Charlie!
Grant R. Soliciting is against the rules in threads or groups.
I have been hearing that people are making offers for minerals at $8,000-$10,000/acre but from what I can tell, the people making these offers are going away as they seem to be empty promises. Looks like the person making the offer is trying to shop it and can't find anyone to provide the money. Anyone else heard about this?
Grant, where in Custer were the offers made?
It was in 14N-14W. I was trying to buy some minerals and the person told me they made a deal for 8K. I recently followed up with them and the deal fell through. Not surprising. Would love to hear if this is happening to more people out there and who is making these offers.
Custer County's mineral sales values are in the future. 2-7+ years as determined by the aggressiveness of the the high risk, high cost developers. Buyers are trying to get ahead of the development advancement at prices that will give them a nice reward when the time is right. Wildcatting is a thing of the past in the New Oil Business. Known geologic inventory (resources) in the ground are the new measure of mineral leasing and sales values too the owners of mnerals. Initial offers almost never reflect the future value of minerals in the ground.
For owners that are leased and can sell into an offer for an amount of money that will cause them to never look back, the highest risk in considering an offer is the guarantee that the money will be delivered at a time certain. Offer terms of payment are always soft so be careful of the time when you agree to deliver a deed. Legal advise can pay great dividends.
Owners who have the time to be certain they get a fair deal based on the resources they own, are well advised to get some professional help in understanding the resource inventory they own before setting a price at which too sell or hold. Once a price is set stick to it. It will most likely be realized in the future. Getting the asking price takes knowledge of the deal, work and patience but will be worth it in the long run.
For those thinking they have found a windfall and can fool the industry by adhering to the Old business of asking a little more of the offerer, you will hate yourself in the morning.
The legitimate buyers have a good idea of the resource value in certain areas similar to the operators who plan to spend many hundreds of millions of dollars in developing the resources of an area. Of course they are not going to offer more than they can get owners to sell for. If the owners have the same knowledge of resource value, they can demand that value and set the terms. That is what you do in a sellers market; you dictate price and terms.
Last week I evaluated a leased parcel for a member. He had an offer for $5000/acre. My evaluation showed that to be fair price now. However, being less than three miles from a play moving in his direction, I determined that in a couple of years, the price would be $8000 per acre if the development continued towards him. And after one successful well was drilled in his unit, the price may increase to $10,000-$12,000 per acre; A fraction of the potential production royalty in 20-60 years.
He elected to take the money and run but was smart enough to hire a lawyer to make sure he had a fair trade by a time certain. His minerals, his needs, his choice. Its a sellers market in eastern Custer. Mineral owners can call the shots if they know the value of their assets.
Gary L Hutchinson
Minerals Managment
What does the HH, DR, mean in this report.
Dewey County
ELAINE 1213-19-18 #1H, February 02 2017
24 19N 18W NWNENENE API: 04323498
Lat: 36.114701347445695, Long: -99.0636190529558
TAPSTONE ENERGY LLC
HH, DR, 21200 ft, MISSISSIPIAN(11000)
I have 2.5 nma in sec 21-12N-14W. What is a fair market lease rate?