Deborah,
I don’t think it’s a dry hole, but no records are in. I don’t like to hear gossip about wells as they never for sure. Devon is a very tight company and don’t want to tell a people anything. They are drilling several wells in the area and if they weren’t hitting something they wouldn’t be drilling. Some wells are good, so aren’t.
Linda,
Some of these well have been know to pay for themselves in less than 18 months, then people could make about 8% or more till the well went down. Some will never paid for them self. Their are lots of tax benefits, writes off, etc, Like Martha said, we will never know for sure what well is paid off or if it’s more investors. Chinese oil company has lots of money, Korea is putting lots of money into our wells, so it’s a world wide thing. That is another reason we need such good drafted leases as the foreign countries do things their way.
Until everone holds to a higher interest (same as oil companies give other foreign nations they drill on sometimes 30%) we will only get offered 3/16. I told one rep they don’t have much of an oil company without the mineral owners! 20% is the most Icould get. Util we all stick together for a larger share, they will have an oil company making billions.
Buddy,
Thank you for the information. You are so right about court case being the rules of writing a good addendum. That Is another reason to have an oil & gas attorney help with your leases. In fact, I have found the more attorneys that are in the office the better the addendums. They all have input in what needs to be added to a lease. Also, location, if you own the surfaces, what company are you leases to, are they planning on flipping it, etc plays a part in what needs to be in the addendums.
If minerals owners stuck together they would have better leases. But, I have a neighbor that sees a check and will sign anything and they don’t want to spent a penny on an attorney. Their title is so messed up I doubt if could be cleared up.
IS ANYONE HEARING THRU THE GRAPEVINE, TELEPHONE, GOSSIP, ETC IF ANYTHING NEAR SECTION 27,21N,3W IS PRODUCING ANYTHING. I PUT IN A CALL TO DEVON A WEEK AGO LAST FRIDAY AND NO RESPONSE, WHICH MIGHT NOT BE OUT OF THE NORM. JUST NOT A PATIENT PERSON APPARENTLY! HA. JUST PRAYING NOT A DRY HOLE YET.
Buddy, Thank you for the case law. I was talking about accounting and foreign companies that “should” use IASB (international accounting standards board), but don’t and it causes investors financial loss. Many foreign companies like many Chinese companies are government (state) owned companies, so when a US oil company partners up with a foreign company they may well be partnering with the foreign government where the company is domiciled. This is a well known fact in the Wall Street world of investing, and now it has bleed over into Oil and Gas investing. I am not sure any attorney, landman or savvy mineral owner can write a lease or addendum to defend against it. http://www.economist.com/node/8522275
Martha,
I think most of the larger law firms are on retainers by big oil companies. I have a great attorney, but I am finding it harder for him to work for me as the big oil companies have them on retainer. I don’t think you can find any large oil & Gas attorney’s that isn’t bought by Devon. It’s sad. But, it’s worst in N D from what I hear. That must be a wild place right now.
Also, oil companies know that small minerals owner aren’t going to make enough off the oil/gas to pay for a good attorney, so they just take advantage of the small guy. I think that is where more people like Mr. Cotton, mineral managers will be needed. Unless a person really understand what they are signing it could be a cool day in hell later. It’s bad enough if you think you have everything covered. I am thankful for this forum as we have been able to get some new information faster, keep up with the changing time, etc. I would like to thank everyone that has giving me good information, you are great.
Deborah-You can go to the OCC website I gave you a while back and check in there periodically to see what is happening.Don’t expect too much right away, since the oil companies historically run about 6 months behind on reporting to OCC.Also keep trying the company office and ask for the landman handling your area to get info. Bob
Linda, Devon sold some of their Northern OK mineral acres to Sinopec (Chinese oil company) and they are paying part of the expenses for the drilling knowledge, so we’ll never know Devon’s true cost per well.
Martha,
Those are famous word “Supposed to” when dealing with an oil company. Seem the language translation is a lot different and always in their favor. So, everyone is going to have to wise up, put more things in the addendum or you won’t even get a check.
Martha,
I agree about writing addendums. I think I finally figured it out, than a new one. One of the latest. I have a no deduction lease, so that means no 3rd party deduction right? wrong. Mustang gas company is charging the oil company and that is being passed on. Here we go again.
To Virginia and Martha and others. This court case and its progeny have been around for nearly 20 years now. The original case was filed in 1995 and the court decision was handed down the following year. Here is the opinion of the court:
http://www.leagle.com/decision/19961057939SW2d118_11057
The bottom line is that oil and gas leases and clauses proposed by landmen are words of art that are based on statutory law and points of law that are handed down by court cases (which are both something that we should be able to rely upon) rather than “supposed to” and “promised me” and “I thought that I had it covered.”
Best
Buddy Cotten
THE WELL BELOW WAS SPUDDED ON JANUARY 27, I BELIEVE, SURELY THEY KNOW SOMETHING.
THANKS VIRGINIA, AS ALWAYS YOU ARE MY GUIDING LIGHT FOR INFO. I JUST NEED TO ACQUIRE MORE PATIENCE.
Virginia, Small interest minerals owners say they are having a hard time getting an attorney to write leases for them. At first, I didn’t believe attorneys were turning them away, so I called all the attorneys I knew of in OK and all the ones that have been mentioned or posted on this forum. I made up a name and told them my family only had 20 acres and needed a good lease and not a one would help. In fact, two of them had become third party lessees and offered to lease, but said they would have to use the oil company lease. Greed pure, greed has clouded the minds of many.
Virginia, Amen! I appreciate all you help and everyone elses also. Even the folks who ask questions make me think and find answers which broadens my knowledge base. You are so right, this forum is a blessing and it has restored my faith in the human race.
Martha M. I am in 6 spacings in eastern McKenzie county and while some infil drilling is ocourring, none of it is on mine and it’s 6 years and counting. Not a glimmer on the horizon either that more drilling is planned. I recommend patience in the decade range, not years.
Virginia, No royalty checks, that’s the plan! OCC rules and regs change faster than I can write addendums.
r w, My family first acquired minerals in the late 1800’s, so it’s been many decades for us already. What’s a few more 100 years! lol
They are coming back here in Hunter area with the second well after 1-1.5 year producing the first one. They have not paid off the cost of drilling on the first one yet.