I heard that Husky completed the pad last week and started drilling on the north-end of 20-19n-07w (the section east of Turkey Creek Country Club, south-side of Highway 51) on Monday. I live in Texas…can anyone verify that they are actively drilling?
I own a small amount of minerals in 7 15 8. My question is this. From reading this forum I have discovered that in Oklahoma you can be forced to accept a lease unlike Texas or Colorado where you can participate in the well. What happens if you want a vertical Pugh clause and the oil company doesn’t like it? Can they force you to let them tie up all your zones? BillTrosper
Comment by Scott Swanson 14 hours ago Delete Comment 20-19n-07w: I heard that Husky completed the pad last week and started drilling on the north-end on Monday (the section east of Turkey Creek Country Club, south-side of Highway 51). I live in Texas…can anyone verify that they are actively drilling? *i commented yesterday in the middle of another thread, so resending this question thanks
Scott Swanson this is true, as evidence by Debra Lorenz’s bonus. My attorney says Royalties are going over $3000 an acre in some cases in KF county. While this seems absurdly high compared to the $400 an acre CHK leased in KF county a few years ago, Hefner Oil has leases in Stephens county that are going for 12,000 an acre. This is the area that has multiple zones being drilled from one pad site. If a company drills to de risk additional zones, it could happen in KF also. Make sure your leases have depth clauses!
Thank you M Barnes. Bill Trosper
I just lease my rights for $2250. in 9 16n 7w.
http://imaging.occeweb.com/OG/Well%20Records/030821A0.pdf
http://imaging.occeweb.com/OG/Well%20Records/1DD2598A.pdf
Scott here are permits. No spud report filed yet but they may have started drilling.
Thanks Ron. They started drilling on 8/4 and said it takes 32-35 days. Do they file the spud report when the drilling is complete? Does it show the potential or just the specifics of the well, e.g. depth?
Here is info from a well near you.
When they start . Not much info on it. Just notice that they started the drilling .
Tim
Would you mind elaborating a little on your sentence.“If a company drills to de risk additional zones.”
Thanks Mike Stinson Kingfisher
Mike Stinson
Kingfisher
Glenn, re: de-risking term
All zones have some element of geologic risk, mechanical risk, production risk, etc. as well as economic risk. So as a company drills their first well in each section they may drill through many zones to get to a deep target. They will take scientific measurements to determine the porosity, permeability (connections between the pores), absence or presence of hydrocarbons and in what quantity, depth, presence of faults, etc. to determine if the zone(s) are good enough to come back and produce later given the right price structure. Oil is more favorable right now, but gas should increase in price as the years go on. They will use all the data sources to determine if a zone is favorable and under what conditions.
Kingfisher Co has many zones that might be productive, so the more zones that might be productive, the higher the lease bonuses tend to be.
Does that help?
Scott, Yes 3/16th is what I got
Thanks Debra. Did they give other options to choose e.g. higher royalty for lower bonus etc?
Debra, good to know about $2,250 an acre in 16N7W. I have 22 NMA in 16N6W and in talks with my attorney now. Was it a 3/18th royalty?
Thanks,
Scott
I haven’t seen one posted in Kingfisher in a while, so here is a stratigraphic column of reservoirs so you folks can keep track of some of the names you will be seeing in the well permits, poolings, etc.
Scott, I had 4 companies making offers and my lawyer said to just wait til they quit going up. I had 2 companies at the last offering the same and took my lawyers advise on which one to choose. My 1st offer was $1,000 an 3/16th. I was very please with ending result. Now just looking forward to maybe with luck getting nice royalties.
Thank Debra. The final offers are encouraging. Good luck!!
Thank You Mr. Barnes re: de-risking term
Great explanation and poster/chart.
Mike Stinson
Kingfisher OK
Let me make a correction to an earlier post. The $12,000 fee offered by Hefner’s company was for purchasing the royalties, not leasing them.