My wife has recently received letters from two Oklahoma mineral brokers regarding a working interest titled to her late father. McClain County, OK; Sec 12-7N-4W Both my wife’s parents are deceased. She does recall back in the 80’s or 90’s that he financially participated in a wildcat drilling project in Oklahoma. The drilling attempt was not successful back then, but he retained his interest. We are so naive as to where to even start in order to evaluate the value of this interest and to update the ownership to the current heirs (my wife & her sister). I just joined this site and it appears that M Barnes might be quite knowledgeable on this subject but I would be sincerely grateful if someone knowledgeable could guide us in this matter. We are feeling more than vulnerable!
Be careful of both the price if selling and your obligations to provide title to the property.
To update the interest, this usually involves a probate which can be a fairly short and simple process in Oklahoma. If an Oklahoma probate has already been done, then this can be updated fairly easily.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Any time you get offers to buy, someone knows something you do not know and they plan to make a profit off of buying.
In this case, Native Exploration is planning on drilling at least two horizontal wells. Pretty sure you would want to keep your acreage (speaking as a geologist). Your wife and sister need to make sure that if they have inherited the mineral interest that they file the proper title documents with the clerk of records in McClain county. If they do not have title, then they need to get legal help immediately and get that going. I cannot give legal advice.
There were wells that were productive in the section until recently, so check with unclaimed funds in the state where her father lived and also Delaware (just in case). Last production was in 2018. If they are due royalties would depend upon the exact location of her minerals compare to the spacing of the previous wells. The new wells cover 640 acre spacing, so they would be included.
They do need legal advice about whether they have mineral rights or just a working interest. They may want to sell the working interest and retain a mineral rights interest because
participating in a well can be very expensive and not for the novice. Whatever they are being offered is probably low to the potential value. The buyer is taking some risk which they build into their profit model.
Test. Type in 1207N04W in the location box to get the wells and their operators. Roan went bankrupt or sold out, so you may need to follow that rabbit trail.
Thank you so much for your replay and the provided links to launch our research. I think maybe a pool application has been filed for 12-7N-4W in McClain Cty. Not sure what kind of deadline this might impose but we plan to proceed with diligence.
Thank you, M. Barnes! So kind and generous of you to share your time and expertise on this seemingly complex maze for novices. We intend to proceed diligently with legal help to perfect the mineral interest title and respond to the pooling order. I’m new to this forum, so I hope I am not out of line for asking . . . . are you available to retain as a consultant or similar business advocate in this matter? Your knowledge and credentials are indeed impressive.
I manage my family’s interests which keeps me very busy, so don’t really take other clients. I do try to give back to the community by answering generic questions on the forum.
FWIW, my family had received a notice of the Tecumseh 0704 12-1-1WXH well (if this is the same well being discussed?) that Native Exploration has proposed in late September, but wasn’t aware that it was more than one. If so, certainly won’t complain about that! Looks like it may still be waiting on a permit.
Hello gdonner! Thanks for your input to my McClain County inquiry. Duly noted that Citizen Energy III acquired the Roan assets. I do not know the name of the well at this point because the interest belonged to my late father-in-law. We are working to find that information now. We found out about this matter due to a pooling application filed by Native Resources for a 640 acre block.
