What are the current leasing bonus and royalty percentage offers in Kingfisher County, Section 32-15N-09W ? Any information is appreciated.
The Mullen 32-15N-9W 1H holds the Mississippi Solid reservoir acreage at 640 acres since 2014.
The Biehler Trust 2032 held the Chester-Upper, Manning and Mississippian Solid 640 acreage until 2015.
The Lotocka 1-32 holds the Miss Solid, Hunton and Viola at 640 acres through at least March of 2021.
The Lotocka 2-32 holds the Miss Solid, Upper Chester and Manning at 640 acres through at least March of 2021.
I see no leases in the last 999 days as these are the main zones of production at this time and they are held by production.
If anyone has had recent offers, they may speak up. Devon has quite a few regulatory cases in sections 30 & 31 just to the west.
I was offered $200 an acre for a 3-year lease at 1/5 royalty. That bonus offer seems low?
Are you currently getting production from the wells I mentioned? Were you force pooled on them or leased a long time back? The reason I ask is that certain reservoirs are held by production, so you can only lease if you are not held by a prior lease or force pooling. Did they offer for only one zone or for ones I did not mention?
I am getting production from Mullen, Lotocka 1-32 & Lotocka 2-32. I don’t know if they were force pooled or leased. The lease offer is: N/2 SW/4 of Sec. 32-15N-9W, Less & Except those formations, subject to OCC Force Pooling Order No. 476056 of Sec. 32-15N-9W, containing 80 acres mol.
I own in that section too, but haven’t seen any offer. May I ask who the offer is from?
The lease offer is from Osage Oil & Gas. The lessor on the lease is Devon Energy.
Order 476056 was for Atoka-Morrow, Red Fork, Upper Chester Cleveland, Oswego, Manning, Cottage Grove, Mississippi Solid, Hunton, Tonkawa and was back in 2003 before the shale play started in earnest. I would guess that the reservoir of interest now might be the Woodford or the Springer. If it were me, I would ask questions such as “what reservoir will you be pooling”, “when do you plan to drill”, “who will be the operator,” etc. Then depending upon what they say and the wording in the lease (which may not be in your favor), you may need to get an oil and gas attorney involved to get a better lease or wait for pooling and that will just be for the reservoir of interest.
Martha,
The lease offer is for the Woodford formation. The leasing agent said it will not be force pooled because Devon already holds this section. If it produces, will I still get revenue even if I don’t sign a lease since I own the minerals?
Jeanne: I haven’t done complete research on your interest, but your interest or your predecessors in title were either pooled or signed a lease that had a depth clause. Assuming one of the above to be the case, your mineral interest is open to be leased in the Woodford. Devon will have to pool the Woodford formation unless they have everybody leased. The Woodford is an iffy reservoir in this part of the state but Devon is pretty good at operating so they might be able to make some money here. I’m not giving advice, but I would ask them about a 1/4th option. Directly to your question, Devon will have to entice you to lease or force pool you. Those are their only 2 choices. My minerals are subject to an old OGL that doesn’t have a depth clause so I can’t lease. Good Luck to you.
Thank you. Is the 1/4 option you mentioned a 1/4 royalty percentage?
Yes. Ask them for a 1/4th royalty on the lease.
What are the important clauses that should definitely be in an oil & gas lease?
Good morning! I inherited 7.5 acres with net royalty interest years ago, but have never received any payments. Additionally, I recently received an offer to sell at $2500.00 per acre Section 33, 16 N, Range 6 West. I would welcome all advice. Thanks!
You said you inherited years ago, so not having a time frame. I checked for production since 2010. Newfield pooled section 33 in 2016 and subsequently drilled a horizontal well called Patrick 1H-28X as it is a multi unit. with section 28. You need to contact Ovintiv who bought Newfield ask for the Division Order analyst for your section and ask what they need in order to get into pay status. When owners inherit, it is their obligation to file a copy of the probate documents in every county where minerals are located and to contact the operator to get a change of status filed with them.
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