Can anyone explain why a company wants to buy the deep rights to several tracks I own in Carter county?
What part of the county are the ‘tracts’ located?
If you give the section, township and range, we can probably answer. There are some old shallow fields, but the new Carter activity is mostly for the Woodford and the deeper shale plays.
22 1S 3W in Carter county. About 8 -10 acres.
OCC has cases for Caney, Sycamore and Woodford deep reservoirs. When they might get drilled is pending as the original filing company is not longer the one who is likely to be the operator as Continental has taken it over.
As Martha indicated above. It looks like there is some potential future activity in your Section. They are trying to buy and get ahead of the new wells.
So I’m better off not selling…
Only you can answer that question. You have to weigh the offers, decide the pros and cons and how the value they offer does or does not meet your needs. Most of the time, when someone offers to buy, they know more than I do and they fully intend to make a profit off of me. Whether or not they will depends on a lot of risk factors. Given that we are in an unusual time with pricing, COVID, etc. there may be delays in drilling or they may move ahead or they may not drill at all. Unless there is a compelling reason to sell, our family tends to hold onto their minerals in areas with future potential and wait things out. Others may have a different decision.
Continental drilled the Courbet 1-27-22XHW in your section in 2019
Thank you for your reply but what does that mean?
OKO&G is right. Echo had originally asked the OCC to drill a two section horizontal well in sections 22 and 27. They sold out to Continental who drilled a different well, the Courbet 1-27-22XHW horizontal well (surface is in sec 27). First sales date was 10/6/19. You should have started to get royalties in April of 2020. If you did not, then send a certified letter to Continental Resources and ask for payment and interest on your royalties. THAT is why you are getting offers to buy-they want the royalties. Did you recently inherit? You may have royalties waiting for you. The well looks like it was curtailed in production for a few months in the second quarter, but it is back on line now. Contact the Division Order department of Continental and find out your status if you have not gotten a Division Order or payment.
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