We’ve gone thru years of continuations regarding payzone allocation between 6 & 7 the Mississippian and( woodford / woodbine?)… apologies I do not have the file in front of me , I am reffering to the three deep horizontal wells that originated from the surface of 6 and crossed 7 WHEELER wells. The order was given that section 6 gets one pay zone and the section 7 received royalties from the mississippian … (which seemed to be the primary target.)
My question is: We were receiving significant offers to buy our minerals during the legal battle, now that production seems to have started we are getting very small royalties and the offers to purchase have gone quite, my concern is we missed the boat to sell and our royalties will never come back? Marathon did send $70 bucks. Seems like a lot of legal expenses and drilling costs for such meager production. Any thoughts?
Sorry for your bad luck. It happens all the time though unfortunately, happened to me atleast 10 times where I was getting high offers and then they change the allocations or zones and offers go to peanuts and it still ticks me off years later and why I started to keep an excel sheet with all the offers I get, when one spikes then ones gotta seriously consider selling1/2 to all depsite what many on here think. From what youve said, it sounds like you missed the boat, if they drill wells 2,3,4 they will be drilled from the same orders. Something could change 20 years from now and if you had a depth clause they could possibly drill deeper wells, but who knows on that end.
I think you’re referring to the four new Wheeler 0605 wells and the one Tidua 0605 well. Those are all productive wells but your royalty will depend on what sections you own and what your decimal interest is. The wells first appear on the January royalty so if you’re looking at a royalty payment prior to this month, you won’t see it. Offers to purchase typically end when royalties begin to be paid.
“Sections 6 and 7, Township 6 North Range 5 West of IM,… No offers to purchase since the final order was granted, very small royalty checks. I am concerned we missed an opportunity to dispose of these mineral while they were hot during all the continuation hearings. and that our section got the short end of the sick not getting royalties from the Mississippian pay zone. Any thoughts?”
I assume this is part of the same question.
Marathon drilled the wells.
Tidua 0605 2-6-7MX, completed 7/24/24 First sales 9/19/24. Royalties probably by March 2025.
Wheeler 0605 3-6-7WXH, Completed 7/23/24, First sales 8/4/24, Royalties probably by February.
Wheeler 0605 4-6-7WXH, Completed 7/32/24. First sales date 7/21/24. Royalties probably by January. This was spud in sec 6-6N-05W but ends up in 12-6N-6W, so may not have perfs in 6 or 7. Was supposed to go through 6 & 7, so that may need more research.
Wheeler 0605 5-6-7 WXH, Completed 12/2/23, No first sales on completion report.
The Wheeler wells were all fracked in July 2024. Tidua was fracked in July of 2024. There is an earlier Wheeler well from 2016.
I only see the Wheeler 3-6-7WXH listed on the tax site, so not sure where the others are. It lists Ag, Sept, and Oct production. Usually runs a few months behind
Royalties timing may change. Marathon was bought by Conoco Phillips, so not sure if that will slow things down.
Give it a few months and see what royalties come in.
For what it’s worth, we started receiving royalties on all these wells in January from Marathon. Marathon is still handling them as of now. DO should be sent next week from what I was told.
Marathon probably sent an early payment so that they will not have to pay interest. It may be adjusted once they have the Division Order work completed.
You do not have to sign a Division Order in OK in order to be paid. They do want the W-9 back, so that is important. You can send in a “Letter in Lieu of Division Order”. Use the magnifiying glass at the top of the page to find an example.
