Is that why what they pay for gas is wellhead price which I guess would be less than marketable gas price quoted on the board of trade? Oil sale price usually follows bot price but gas usually less. I guess when you add the liquids revenue to the dry gas, it gets pretty close.
Buddy Cotton, Do you know of anyone who can help folks who have a small amount of mineral acres?
MD…We were talking about Devon not drilling multiple wells on sections in Garfield.
Plymouth is drilling most of our sections except two that Devon just finished drilling and Plymouth is starting a second well on one of ours as well.
Linda that is Plymouth. They have drilled 2 and have 4 more on the books to increase density. The one I was talking about is on one of our places where the first well is a little over a year old.
Thanks Martha!!! My late Grandfather worked for George Failing. When they drilled the well, he made me promise to remind my grandmother to never sell the mineral rights. He knew someday they would be back.
G Win, The oil from the Anadarko Basin migrates up through faults in the earth and your minerals are an area in the northern part of the Anadarko Basin where it does just that. Oil and Gas companies have known this situation existed decades ago, but they could not get the oil out of the sands using vertical drilling, because the oil filled sands are not in tubes that stand upright. Instead the sands are are laid down in tubes, so horizontal drilling is needed to run the laterals into these horizontal sand tubes and get the oil. However, the fact that your oil well was drilled tells us that oil and gas companies knew the oil was there many years ago, but couldn’t get to it, so it’s a sure thing that the oil is still there. That’s why we shouldn’t sell our minerals.
we had a well drilled in the 80,s. The oil company found oil but said that it was not profitable enough. However, I sighned a new lease for $400 per acre for horizontal drilling . Then, now i am being hounded about selling my minerals. 1 letter per week. Why is there so much interest in a nonprofitable well??
Deborah,
What do you not understand on the proposed multiunit H. well papers that David Pepper sent you? You can always call his office and some of staff can explain it to you. What kind of location exception are they asking for. I haven’t received anything from his office. Their are several pads being made at this time, a well is still drilling across from the old high school in Hayward. More pads to the north and east. Some rigs where drilling to the SW, closer to Covington. I haven’t seen any reports on how much any of these wells are making, but most of the leases in that area will be running out later this year, so I’m sure they will be a lot of drilling.
Sorry Linda I will try to pay closer attention.
Looks like all of the Corporation Commission decisions have been put off or rescheduled until June 10th. Location exception, and to determine the results from the drilling of the well and the actual allocation factor. I do like the proposing to drill a multiunit horizontal well in the land involved. Just wish I understood all the info that I get from David Pepper! ha
Garfield: ARP Oklahoma LLC; Saluki No. 3-4H Well; SE1/4 NE1/4 NW1/4 NE1/4 (BHL) of 04-24N-07W; 164 barrels oil per day, 605,000 cu-ft gas per day; TD 10,908.
ARP Oklahoma LLC; St. Bernard No. 3-9H Well; NE1/4 NE1/4 NW1/4 NE1/4 (SL) of 09-24N-07W; 180 barrels oil per day, 880,000 cu-ft gas per day; TD 10,724.
Longfellow Energy LP; Pierce No. 32-M1H Well; SE1/4 SE1/4 SW1/4 SW1/4 (SL) of 29-21N-05W; 151 barrels oil per day, 450,000 cu-ft gas per day; TD 11,600.
I just learned of mineral rights I inherited in Garfield Co.
**The courthouse records of Garfield County, Oklahoma, show that you own a mineral interest in the following tract of land in Sec. 2-24N-8W of Garfield County, Oklahoma:<u> </u>W/2 SW/4**
This is a 9 acre spot. Delta Energy made these offers soon after informing me of ownership to these rights.
DeltaCore Energy Inc. is interest in making an offer to lease your mineral rights in this tract. Records indicate you own a total of 8.88888 net mineral acres in the above described lands.
Please consider the following terms:
A 3 year Oil and Gas Lease
$600.00 bonus per acre
3/16 royalty provision on production
2 year option to extend lease for same bonus consideration
** Or**
A 3 year Oil and Gas Lease
$500.00 bonus per acre
1/5 royalty provision on production
2 year option to extend lease for same bonus consideration
I am completely new to this and unsure if this is a reasonable offer or not? This couldnt have come at a better time as far as money is concerned and I would like to act quickly. Any recommendations would be greatly appreciated.
Brian, Mason Mungle who is the OK NARO president told me that he personally only leases to third parties and not the operating company or a lease broker like Deltacore. If you google Deltacore you will find that they are a lease broker and will not drill your well. It’s best for us mineral owners to learn about other wells that have been drilled and are producing and wells that are being drilled right now around our minerals, because you can tell if the drilling is getting close to you. I get a Oklahoma township and range map and locate my minerals legal description then locate the wells. Deltacore is offering you a pretty good bonus, but I’d make sure to get 1/4 royalty instead of 1/5 or 3/16ths. My family and I have leased hundreds of minerals for 1/4th royalty, so it’s not unusual, but lease brokers will most often tell you they haven’t given that much. The lease brokers are highly informed, so I don’t think they would be offering to lease your minerals if they thought it would not be drilled. Lease brokers have talked to hundreds of people, so they can tell if you are too eager and need the money. I try to negotiate like I won’t ever need the money. Here’s some good info for you. http://oil-gas-leases.com/oil-lease-sale.html
everything is negotiable
Bob
Brian,
It’s not a bad offer, but you can always ask for 100 more and see what they will do. Now which choices to make? If you had a 100 BBD well and got 1/5, you would get about 10,128 per year before taxes, on 3/16 you would only get 9,495, so it depends if you want the money up front or later.
Then will they drill and you get a well? Just because they leased don’t mean you get a well. Also, when you sign a lease today it usually takes 30 days to get your check or your bank draft will pay out. That is if you title is clear, otherwise it could be a lot longer.
Brian Below is a completion report on a well in the section 1 next to you and it looks like they have another well started in that section . They have also filed the paper work to get ready for a well in your section 2 and section 3.
http://imaging.occeweb.com/OG/Well%20Records/1DD1D70F.pdf
I will get you some more info .
Never did hear back from Devon. Does anyone know of the hold up from Devon for section 27 21n 3w? I believe there are several more in the area, seems like they are drilled, but not completed, can’t find where any of them have been tested. Maybe they are fracking all of the them in the general area approximately the same time span???
Garfield: Longfellow Energy LP; Atchison No. 25-W1H Well; NW1/4 NE1/4 NW1/4 NW1/4 (SL) of 25-21N-05W; 71 barrels oil per day, 125,000 cu-ft gas per day; TD 11,195.
Plymouth Exploration LLC; Bolenbaugh No. 1-7H Well; N1/2 NW1/4 NE1/4 NE1/4 (SL) of 07-24N-04W; 352 barrels oil per day, 559,000 cu-ft gas per day; TD 10,560.
Plymouth Exploration LLC; Lowman No. 1-32H Well; N1/2 N1/2 NE1/4 NE1/4 (SL) of 32-24N-04W; 198 barrels oil per day, 548,000 cu-ft gas per day; TD 10,200.
Plymouth Exploration LLC; Wilferd No. 1-22H Well; SE1/4 SE1/4 SW1/4 SW1/4 (SL) of 22-24N-04W; 117 barrels oil per day, 327,000 cu-ft gas per day; TD 10,200.
Deborah, They might be waiting on a completion rig and it can take a while after the wells are completion for Devon to file the completion reports. Yesterday, a lease broker working northern OK said they are working 24/7 right now.
Two weeks ago, they were fracking 4 wells that are about 4 miles from your well, Deborah. Water is getting to be a problems again. Lots of these leases are about to run out, so I think they are working overtime to get them all drilled with the little water that they have. Martha, you are right about the 24/7. Never saw so many lights at night with people working at these sites.