Contenential is starting their nogotiations with me on our 106.66 nma. They are really low balling this time around. My neighbor who is in his 80’s took $500 an acre on his land. We took $850 3 years ago. They really want a horizontal well in our section. The hearing is set for this month. We missed out on $2200 a acre three years ago from Echo who is now no longer in business. Looking for advice. Willing to attend seminars, and my hire a land mgt company. We lost out on $130,000 last time because we reacted to quickly. I will be force pooled if necessary.
The bonus offers in this season are much lower than past years for multiple reasons. The drop in oil prices due to COVID and the availability of funding for drilling have changed quite a bit over the last few years. Companies have a different style of operating now that is much more cautious and they have to live within cash flow. The bonus offered will be different according to the royalty. 1/8th will be higher than 3/16ths, etc. Most of us would rather have the higher royalty than be concerned about the bonus. If there are going to be multiple wells, the higher royalty often pays out much more. I do not have a problem with force pooling and actually prefer it in some circumstances. The bonus/royalty pairs offered at pooling are “supposed” to be the highest amounts offered in the section and the eight contiguous sections in the last 12 months, so are generally competitive. I like to look at the closest poolings in those 12 months to get a general feel. Continental pooled section 36 in Feb 2020 for $1750 1/8th. $1500 3/16ths. $500 1/5th. the case is 201905667 Order 708556 if you want to read it.
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Have been offered $3250 to sell Sec 25, 2S, 4W. Does this sound reasonable and what is happening in that area? I live in Wisconsin, but have several properties in Stephens, Carter and Love counties. Would appreciate any information you might have.
Lynda , I would not sell . Long term gains are usually the best. How ever if I had a lot of Minerals and the money was substantial depending on your age, selling maybe a reasonable choice.
First offers are Generally LOW.
Continental is planning a well in that section and has a pending pooling hearing. If you are unleased, then you should have gotten paperwork regarding the pooling. Did you inherit or are you leased? You only have 20 days in which to answer the pooling. If you are leased, then you do not have to worry about the pooling. I did not see your name on the respondents list.
Any time someone offers to buy my minerals, I always try to figure out what they know that I don’t know. Pending horizontal well activity would encourage me toward keeping my minerals. They may be talking about just one well now, but more may come in the future if the first one is good.
I own a section in Stephens Co 26 1S 4W and have no idea what is happening. I do have paperwork from about drilling there but the date keeps getting pushed back. Any info would be greatly appreciated. Also 15 1S 4W in Stephens Co. Thank you.
The Sundance Kid was permitted 12/14/2020 with an amendment on 12/28/20. Camino is the operator. The well was spud on 3/29/21. You probably won’t hear anything for 4-6 months.
Misty: I have a working interest in the Sundance Kid, but it has spud (surface casing set) but has not begun drilling yet. Section 15-1S-4W had a couple of poolings filed by Camino & Black Mesa but both have been dismissed.
What happens if my lease expires before they start drilling? Lease was signed in December 2018.
You can lease again.
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