Gastar Expl has applied for 640ac horizontal in Sec 2-18N-5W, the Mississippian and Woodford formations…to join up with the existing unit in Sec 3-18N-5W. http://imaging.occeweb.com/AP/CaseFiles/occ5200156.pdf
For M. Barnes: as a experienced geologist, are you familiar with the West Edmond Hunton Lime unit ? Can it be be broken up or deleted?. Also I have two quarters in 12-14-5 Canadian County on which Chesapeake will not release and will not drill. These are adjacent to one of their wells that has produced verly well. How can I get them to release without filing suite?
John, that unit has had a long history. I am not an attorney, so I do not know if it can be broken up or have tracts released. You may be able to call the OCC Oklahoma Corporation Commission and ask them.
Are the quarters in 12-14-5 in the unit or elsewhere?
Thank you M Barnes… I appreciate the quick response.
How long after a well begins production should we expect to receive a Division Order for review? Our well was put into production the week of 4/20-27, but we have not heard from anyone, including the validation of our royalty amounts, bank information,… Thank you in advance for your response.
Scott, usually it takes four to six months to get the Division Order. They are supposed to start paying you six months from the first sales date month. So don’t expect anything until September or so.
I received a call from Turner O&G about a month ago confirming my mailing address. They said they were going to send me a letter with information their intent to drill on our land (SE1/4 15N 6W, and leased to Newfield). I haven’t received the letter to date, and when I call their office, they can’t tell me who I talked to, even with the legal. Somewhat frustrating.
Fast forward to this week. I received an offer to sell our mineral acres from Bridgepoint Mineral Acquisition Fund for $6,000/acre. That is twice the amount of the last offer. I’m expecting to receive notice any day of an application to change the spacing from 160 to 640 acres.
Since the prior 3-year lease ended in 2014, there has been no interest in a new 3-year deal for mineral rights I own in Sec 26-18N-8W. Now, I am being offered a lease of $2,000 per acre and 1/5 royalty. Anyone else have offers in that section or nearby? Thanks so much in advance for any info. I have been reading and learning for quite a while and I sincerely appreciate all the information shared with us “newbys”.
Melodee,
good to know. I just looked and no leases have been recorded in that section in the last 24 months. Not good to be the first horse out of the gate, so bide your time a bit. In my experience, the first offers are usually one third to one half low to final offers. There are some horizontal wells all around you, so looks like the trend is moving toward you. 1/5th is good. Oil prices are going back up, so leasing prices should go up as well. In the meantime, go read the investor presentations for Newfield, Continental, Apache, Marathon, and Husky. Husky is the main player in here, but Newfield is coming in to drill the Meramec.
Thank you, Mr. Barnes, for your advice. That as my thought, too. I have %ages in Newfield’s horizontal well(s) in Sec 36-18N-9W & Sec 2-17N-9W and am awaiting (good) news. For those leases we got $4,000/acre and 1/5th. Our local attorney has been fantastic, but it seems to me that, as you say, by holding out a bit, one can improve the offer. I have learned so much reading this forum and appreciate the help!
16 new leases in 9-16N-7W over the last 24 months. Mostly Felix Energy 3/16, 1/5 and 1/4th (Marathon) . Horizontal drilling catty corner in 15.
thanks M Barnes. It looks promising
Does anyone have mineral right on 9/16N/7W? If so have you seen or heard of any activity there?
Does anyone know if there is any oil activity in Sec 21, 17N, 8W -Kingfisher county
Joe, Eight leases posted so far in 21-17N-8W, mostly by Newfield and Americam Energy Non-Op LLC. Horizontal well permitted on the east side of 19-18 so getting close to you.
M. Barnes: Thanks for the information. Joe Edson
Joe:
Newfield certainly has a lot of activity going on in the vicinity, but nothing in your section yet. It looks like a likely candidate in the next year or two, considering all the activity to the North, South, East, and West. Hang tite if oil prices hold. I own minerals in 21-17N-8W, and have had a few calls interested in leasing…
Charlie,
Don’t go for the 2 year option. It will tie you up for too long. Horizontal drilling is moving into the area-mostly by Newfield. Todco is a leasing company who is leasing for someone, not themselves. I suspect it might be for Newfield. If this is your first offer, it is low to the final one. There is only one lease in 29 yet, so hold off for a while and see what develops. It is more important to get a really good lease, so make sure you get the clauses that help you and delete the ones that hurt you. Come back for more help when they finally show you a lease.
I have interest in sec 29-17N-8W. Todco Properties has offered 1500/acre for 3yr w/ 2 yr option and 3/16. This is my only interest and do not know if this is market value. Any info would be appreciated.
M Barnes Thank you I will be back