have some rights in section 7, T 18N, R9W, is their much activity in this area. what is the going rate for this area per Acre. should I hold onto what I have?
Appreciate any information, Thanks
There is horizontal drilling all around you. The well in your section was not that good, but others near you are drilling and may indicate new opportunities for other horizons or better completion techniques.
When you think about selling, you have to ask yourself if the folks offering to buy will make a profit off of you (yes)? Do you want it instead (probably)? Do you need money now versus later? Do you have heirs? Are there more possible reservoirs to come in the future? Are you patient? Chisholm is drilling quite a bit in the area. What usually happens is that they will hold a section with one horizontal well and then come back later and drill with more wells when the price is right. You can invest what you make off of the current well (not much right now), sell some, sell none, sell all. You have quite a few options.
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Thank you for your reply, one of my two brothers is thinking of selling @ 2,200 per MA. should I buy his intrest and hold, it is not paying coffee money right now, or have him negotiate. I think I will hold my intrest dont need the now and have 2 children. I know you cant make that decision for me but I am not as up to date with what is going on in that area. Thank you very much for your time, Keith
Keeping it in the family is a way to consolidate your acreage and have more power in the future. If he is happy with that price, then that is a possibly good option for you to buy him out. Personally, I think that is a lowball offer. Section 7 had leasing amounts for $2750 3/16ths and $2500 1/5, so sales amount should be higher. Section 29 had an offer for $15,000/ac-not sure on the royalty that went with it.
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m_Barnes I got a division Order dated 12 Dec what do I need to do ?
You need to make sure that it is the simple style NADOA look alike. It should say on there that is does not change any terms of the lease. I am attaching the NADOA one for comparison. If yours is two or three pages long, then substitute the NADOA one instead.
0_Division Order Model Blank Form 2017 (1).pdf (118.6 KB)
The equation for your decimal is: net acres/spacing acres x royalty x % perforations in your section. If your numbers and their numbers match, then sign the division order and the W-9 and send them back by certified return receipt mail and keep a copy of everything in your files. If your numbers are just a bit different, it could be because the spacing is not exactly 640 acres on sections 1-6 or 7, 18, 19, 30 or 31. The north and west sides of a township are adjusted for the curvature of the earth. Technically, in OK, you do not have to sign a DO and you will still get paid. I choose to do so in order to have documentation that we are in agreement on the decimal and also to have down the line in case a new operator takes over. I have had them try to change the decimal. If you have proof, it helps.
If it is a multi-section well, the paperwork should indicate the percentage for each section. Check that against the OCC hearing for the section. I have had DO’s that do not match the OCC, so have had to clarify which one is correct.