The rancher owns 10% currently leased to another company. We had a 5 year lease with Hunt who transferred to Oxy several years ago that lapsed in July. Oxy apparently isn't interested in releasing. Universal Royalty Co in Dallas is interested in finding a buyer at a floor price of $1,500 per, but I would much rather lease. The rancher told me that in the past month Oxy drilled on a parcel just north of us and hit oil but I can't find the well on NDIC. I'd love some advice on what I should do from those who know that area. Wish I'd discovered this site months ago as I am in the dark.
Thanks,
David
That Oxy well, Thunderbird, with the head 3 miles north of your section shows no production and temporarily abandoned, status date 1-9-2013. There are two Oil for America vertical wells southeast of you that are DRL status. I think there is going to be some oil in your area [my opinion only] but it is a wildcat area. It may take some time to figure out how best to produce, they may not even be in the right formation yet. I don't think I would be jumping at the chance to sell for $1,500 either. I would recommend that you get a $50 subscription to the NDIC O&G Division and go through the wellfiles on those three wells and see what formation they were drilled in and what oil shows were found. The Oxy well was Bakken and the nearby vertical wells were Lodgepole. I hope this helps.
Thanks for the info. This is what my rancher wrote last week regarding that Oxy well. At first we heard it was abandoned, then I received this email. So I don't know what to think. I would much rather lease but so far nobody is interested.
Email below--
David
They put a work over rig on the well north of our place . That means they
must of hit oil and are putting casings down for the pump . That’s all I
know for now