We have mineral acreage and received a low-ball offer from Calvin Energy LLC of Norman, OK. I checked with the Chickasha/Norman C of C and BBB and they had nothing. The address on the corporate legals appeared to be a residential address. We ignored their threats of forced pooling if we didn't sign.
The S8-6N-8W is about 5 miles SW of Chickasha according to Appraisal Office. Does anyone know of this area's O & G history or potential? Any information would be most helpful.
Great discussion group. Been lurking for months. Thanks to all.
R Jackson
Robert, Right now 8W is a little west of the main play which is running N.W. to S.E. Most of the action is more like 8N/7W down into the corners of Grady, Garvin and Stephens Countys in 3N/5W, 2N/4W, 3N/4W, 2N/3W. You are wise to ignore the threats of forced pooling. Actually forced pooling is a good thing in that it means a well is really going to be drilled. I didn't see even the beginning of anything in your section on the OCC website. Grady county records show that some leases have been taken in 8-6N/8W by Unit Petroleum but I haven't seen anything indicating drilling anytime soon.
I appreciate the information Michael. I tried reading the free map from the appraisal district and couldn't locate Sec. 8. Glad at least Unit is showing some interest. Waiting with fingers crossed as I look for rabbit foot.
Michael Hutchison said:
Robert, Right now 8W is a little west of the main play which is running N.W. to S.E. Most of the action is more like 8N/7W down into the corners of Grady, Garvin and Stephens Countys in 3N/5W, 2N/4W, 3N/4W, 2N/3W. You are wise to ignore the threats of forced pooling. Actually forced pooling is a good thing in that it means a well is really going to be drilled. I didn't see even the beginning of anything in your section on the OCC website. Grady county records show that some leases have been taken in 8-6N/8W by Unit Petroleum but I haven't seen anything indicating drilling anytime soon.
Robert, We received a lowball offer today fromCalvin Energy also for our mineral interest in 04N-07W Grady
The Calvin Energy rep. that contacted us was a jerk. He told us if we didn't sign his agreement then he would show us as "demanding" force pooling. I suspect Calvin is a bucket shop that churns and burns flipped leases. If not they should contact the BBB or the CofC and come out of the shadows.
Robert, I recently inherited 8 acres interest in Sec 8-6N-8W and have done some research on the section and this is what I found. Unit Petro. drilled a well in 1982 in the ne quarter to a depth of 17,000 feet, the deep Springer zones were dry, the Yule zone at 8200 feet had original flow data of 700 mcf and 4 bod, the well was plugged in 2000. In the mid 80's a well was drilled on the se quarter to the Yule zone and it was dry. There is a well about a half mile to the north of sec 8 that was drilled in 2005 at a depth of 18,000 feet that originally flow tested at 4500 mcf and 99 bod. There are some other marginal wells in the area. I am not sure what the play is for this section, it appears to be a little west of the Woodford shale. I have received one offer back in November from Unit Petro. for $400 3/16 for 3 years w/ 2 year additional option. I received a second offer from Calvin Energy a couple weeks ago for $500 3/16 for 3years and 2 year option. I am waiting for the probate process to get finished before I can accept a offer. I will definitely take an offer from Unit over Calvin but will use the Calvin offer to try to Unit to pay a little more. Unit has all the data from the previous well that they drilled on this section so they must know something! From what my amatuer eyes saw at the courthouse, the biggest lessee in the section is Unit and Chesapeake has leased part of the section in May. Friend me and I will get you the info on Units landwoman.
Scott the conventional wisdom on these forums is don't get locked into a 2 year option, a more favorable clause would be to give them the right of refusal on any better offer on a top lease.
Thanks Michael, I will use this info when negotiating the lease. It sure is nice to get some knowlegeable advice on this subject, thanks to all for sharing!
Michael Hutchison said:
Scott the conventional wisdom on these forums is don't get locked into a 2 year option, a more favorable clause would be to give them the right of refusal on any better offer on a top lease.