In a discussion with Landman representing Brittany Energy, I was advised the lease bonus is based on the type well being drilled on the property. He indicated further that only vertical drilling would be initiated Section 15-17N-01E which limited the bonus amount offered. As it has been very difficult obtaining any information regarding this property, I am in a bind in determining what would be in my best interest. Any comments, information, or help will be appreciated.
American Energy has made a deal with another Co. for 3,000 leases in Payne Co. Some in 15-17n-1e and around it. They are there to drill Horizontals . Brittany's lease needs some changes.
Devon and others have been drilling Horiz. wells and lots of them in 18n-1w ,18n-1e & 18n-2e. Just this month they filed paper work to start drilling Horiz.wellsin 5 sections in 17n-1w.
http://www.okladot.state.ok.us/hqdiv/p-r-div/maps/control-maps/payne.pdf
Joshua, Current leasing goes the direction the horizontal plays develop. There has been some new developments in Payne county. The multiple oil and gas formations that were once vertically drilled 15 to 20 years ago are now being horizontally drilled. Not only the Mississippian Lime and Woodford is being developed but other targets at different depths. I've been in this business over 30 years and know for a fact that everything has changed in the last 10 years and right now, no company worth a darn is drilling verticals in your area of Payne county. Shame on the landman who lied to you.
Ron (or others) - what can you tell me about 22-18n-1w and potential production? We just received notice of spacing hearing from Devon so anticipate horizontal drilling soon. We are also getting strong offers to buy our rights for over $3,500/acre. We have 4 family members and cannot decide whether to sell, sell half, or keep our rights which are leased for 3/16th. I have done the royalty math and if the production is above 175 bopd we should probably keep our rights.
Ron McKenzie said:
Devon and others have been drilling Horiz. wells and lots of them in 18n-1w ,18n-1e & 18n-2e. Just this month they filed paper work to start drilling Horiz.wellsin 5 sections in 17n-1w.
http://www.okladot.state.ok.us/hqdiv/p-r-div/maps/control-maps/payn...
Stan keep in mind that they are getting production from two formations in 18n-1w. it will take more then one well per section to drain each formation . I'll look for some production info.
Stan and Joshua, Here's a YouTube video that shows the magnitude of horizontal shale drilling that may help give you an idea of how much your minerals are worth. The video also addresses the fact that there can be more than 1 well drilled per section.