HI would you give me info on activity in Section 21, Township 17, Range 23 (1/8th royalty if helpful)
Thanks!
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Mewbourne has been given permission to drill a multiunit horizontal well through sections 16,21 & 28 named Old Glory 16/28 AP #1H. No permit just yet.
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Will these horizontal wells affect the Suthers 28 #3H or Suthers 28 #1H. These wells are in Sec 28, Township 19N, Range 25W near Arnett, OK.
The Suthers wells are many miles away. Note the Township and Range differences.
Here is a handy map for Ellis. Ellis County Map.pdf (466.9 KB)
Thank you for this info - so, this is probably a basic question but when the well is drilled, I assume they will contact us to negotiate a new lease, is that correct or will an existing lease be used? We have been getting some revenue from an existing lease but the amounts have been small. We have been offered to sell the rights - who can tell us what is fair? In looking at the directory on this site, should I contact one of the attorneys?
If any future wells are in the same reservoir as the first well, then you are likely held by the terms of the original lease. If your first lease had no depth clause, then the new wells will be controlled by the first lease. If you were force pooled for a certain reservoir on the first well and the next wells are in a different reservoir, then you may possibly be leased or pooled again.
Many purchase offers go out right before infill drilling. In my experience, they are usually low ball to see who will bite. The buyer wants to make a profit off of the purchase by getting the royalties on the new wells. Our family would rather get those profits instead.
You do not need an attorney if you are held by the first lease. If you are needing a new lease, then it would be wise to get a good oil and gas attorney to review any new lease terms.