Any way I know those people I’ve never even met the ones in Oklahoma. But here we are today, I’m wondering what happens with the current lease I have. Wouldn’t they just continue to manage my interest?
I'd say the most likely scenario is that they shut production down. Were the last few years of checks small and infrequent? It is not uncommon for them not to call back. I'd say it is more likely
"Marathon go to court on Tuesday and I haven't made a deal yet"
I don't have a clue what you are talking about on this.
or this. :)
"I get radio silence when I mention Romine."
Help me out. Maybe I missed another conversation somewhere. Are you talking about the lease that was being held by the Velma Sims Sand unit from the 60's?
K Dawn said:
Any way I know those people I've never even met the ones in Oklahoma. But here we are today, I'm wondering what happens with the current lease I have. Wouldn't they just continue to manage my interest?
I was chatting with a lady the other day and when I told her who I was I never heard from her again…lol so I thought maybe they were not nice people…I wouldn’t know…lol. Marathon Oil has offered me 1300 per net min acre 3/16 and 81.25 net revenue interest.
The current lease
Forgot to mention the offer is on 19.
K Dawn,
They are not making you a lease offer on "tract 19". I would guess they are making you a lease offer on Section 19 of some township. Do you have info showing 19-1S-5W or something like that? or S19-T1S-R5W?
Maybe they figured out you were from Duncan! Just Kidding, I was born there.
K Dawn said:
I was chatting with a lady the other day and when I told her who I was I never heard from her again..lol so I thought maybe they were not nice people...I wouldn't know....lol.
2 offers NE/4 19-1S-4W and SE/4 19-4W something about the bottom hole location
That was funny I was hoping to visit and meet some of my 1/2 something or others something sisters or brothers…but I know they are all over…I don’t wanna walk into a snake pit…lol…
SE/4 19-4W = SE/4 19-1S-4W I'm guessing?
Marathon is leasing that section. The hearing date on the 4th is for the spacing and location exception. They have not applied for pooling yet. There are some surrounding poolings pending and one 2 miles away that an order was issued on. The bonus may not be the most important part of that lease, but it looks to be a fair offer right now. Your situation could influence much of the decision.
I’m sorry, please explain about my situation and how I could influence it.
There are many things could affect advantages the short term and long term income from a potential well.
Where the well is in the application stage.
How many acres you own
How clean the title is and your documentation of such
Your age
Income
Debt or lack of
Heirs and your desire to assist them
Your willingness to gamble or speculate
How the well performs (part of the speculation or gambling)
You investment portfolio (in case you would like to participate in the well)
and on and on.
Anyhow, what I would do and what would be the best choice in your case could be vastly different. This is one of the reasons you will see such a variety of advice given. Most of the time people give advise based on what they would do but they don't know your situation. (Or in a few cases don't know the business)
Your choices are taking 3/16 RI and the bonus, 1/5 RI and less bonus, 1/4 and no bonus, leasing to a 3rd party, waiting on a pooling and taking one of the above options, participating. Or depending on the acreage a combination of all of those.
A person that is 80 years old with no close heirs would likely choose differently than someone that is 50 and has a handicapped child they want to ensure is taken care of for the next 40-50 years.
In my opinion unless a person is debt free and has sufficient cash to allow them to lose it all and it not change their life, they don’t have any business participating in a well. I’d expect this one to be a $10.5M well. So the investment would be about $16,500 per acre owned.
If someone owns .5 NMA, then the $1300 NMA bonus of $650 may not make a big difference in their life. Taking $1000 and a 1/5 RI will result in $150 less up front but pay 1.25 % more in the long run. But on a marginal well it may take 4 years to break even. The break even point is a lot quicker if a subsequent well is drilled.
Things change and risk changes dramatically when you are talking about 50 acres. $650,000 makes a big difference in most people’s standard of living. Even then do you want it all up front or are you willing to take $500,000 and let the $150K “ride” a bit?
Rick you are giving me such great information. Last night when I finally got a chance to look at the unitization I saw my Mom’s signature from 1965. How cool was that. Looks like they clarified some Well I’m 50 with no debt, like to gamble.
I’m still working in getting a copy of my lease with Chevron, so I can figure out was happened to the abandoned wells. So far I haven’t been seen any documents to support breaking of the unitization. Still trying to figure exact acreage and location of each tract. I also need information about the Velma Tussy units I have something in 3 and .3…if that make sense.
Any word on the hearing today with Marathon Oil?
State offices were closed due to the weather. Normally it takes a couple days to see the results.
Sunny and 67 here…okay. yeah I’m concerned with my Humphreys 9 and 10. The court house was swamped. So I will work on Chevron and the court house tomorrow. Oh I’m ahead of myself, Marathon is tomorrow. It looks like I have ownership in some productive land. So I’m intetested in its value.
Rick, Do you have a copy of Velma Tussy unitization? Also is there a web site that I can get the maps and leasing information?I need to see all of the leases that we originally set up. I know we had contracts with Skelly, Getty, Shell, and a current lease with Chevron.
You have been so helpful.
http://imaging.occeweb.com/ There is a unitization section there.
Maps
http://www.okladot.state.ok.us/hqdiv/p-r-div/maps/2003county/stephens.pdf
http://www.okladot.state.ok.us/hqdiv/p-r-div/maps/control-maps/stephens.pdf
Stop by the courthouse and they will have a free one to give you that is decent
Leases
You can pull listing from here from 1992 and images from 1996. Older than that you will have to get them at the courthouse.
I found where the Humphreys Sand Lot changed to the Romine A T-9 and B T-9. I have ownership of land and resources in both of those.
Is this the location of the abandoned wells. The last activity I have on this is in 2009 and Chevron was managing it.
And finally, is there any interest in this area since the boom or new active wells?
Rick, I didn’t fill out my profile right. The little boxes were small and I put in the location of the property instead of my location. I’m in Phoenix, AZ. I just wanted to clarify. That is why your help is so amazing. I should be able to find out from Chevron.