**Thank you so much M Barnes! We’ve been running blind here and this was extremely helpful! **
Sheila,
I would have to see the DO to see the context. You can friend me with the blue icon to the left and then we can email. Or you can do the math yourself and see which one matches you acres and royalty as below.
If it is a two section well, then “well decimal” may be the last term.
The Division Order should be on the NADOA form. It should have a phrase somewhat similar to : The terms of this division order do not change any terms in the lease.
You should compare the royalty interest decimal to the net acres on your list. Essentially the formula is
net acres/spacing unit x royalty % x % of perforated interval in the well.
Not all sections are actually 640 acres. Come back if your math doesn’t work.
M Barnes, I sent you an email.
JoAnn, the exhibit with the lines is just dividing up the section into its quarter sections for ease of figuring out where the well is. All owners in the section will be part of the well since it will be spaced at 640. The hand drawn line is the proposed well. Given that it is pretty far to the west side of the section, they are leaving room for more wells. They are not allowed to go too close to the section line.
The exhibit with the lines and formations is a well log from a nearby vertical well. It shows the formations that will be encountered in the horizontal well.
Not sure what the red names mean. Might be working interest owners, might be for another reason.
$3500 is probably too low. In my experience early offers are very low. They just want to know if someone will take it. With the opportunity (not a promise) of more wells, it might not be enough to be fair. Or is could be. Lots of factors need to be considered. You can friend me with the icon.
Has anyone received an offer in excess of $8000 per acre to purchase oil rights from BCF Minerals? I have seen the $12000 number here. Anyone know who is offreing that?
Those of you who are pondering selling, remember that the offering company knows more than you do and they want to make a profit. Please get very well informed before you sell. Find out the current value, find out the potential future value of more wells-they know about those. Also, you do not have to sell the total mineral rights. You have the option of selling just the royalty or partial royalty from one well and retaining the mineral rights.
Read the corporate presentations from Newfield, Continental Resources, Marathon, Cimarex, Devon and the active companies in your area. Find out what is going on. Think long term if you can and creatively if you need a short term solution. There are also companies that make loans based upon royalties. Be very informed and careful if you do that.
Many options are out there to preserve your future wealth. A quick buck now may not be the wisest option. It will be for some folks, but please get professional help so you know your pros and cons.
M BARNES is so right! Back in the 1970’s our mother sold interest in Blaine County for a small sum thinking that it would never amount to anything while (fortunately) keeping her interests in Kingfisher. Now the Blaine property is booming and someone is getting rich from it, but not us! 20/20 hindsight. I think we’ll hold on to our Kingfisher properties!
So how long after the completion report do they start sending out the royalties? My mom owns the rights and is contemplating selling a couple of acres and we’d like to make sure it’s not a mistake.
Amy,
If you have seen the completion report look for the date of first production at the top right hand corner of the page. Generally, you will get first royalty check 5 or 6 months after that date and it will include the first 3 or 4 months production. If the well started producing April or before, post the well name and I might be able to tell you oil sales for the first month or two.
Diana, friend me with the blue icon at the left and I can help you walk through how to get a handle on them. There are many ways to get the information for free. If you are getting offers, then that is a good sign. Don’t sell if you don’t have to!
My family has fractional royalty interests in the following locations in Kingfisher County, OK: S2, 6N, 7W and S17, 17N, 7W and possibly others. I had been receiving payments for many years when they just stopped about 6 yrs ago. I called one of the companies and they told me the well was 30 yrs old and probably went dry! Many other things were going on in my life and I just dropped it. Now I have been receiving offers to purchase or lease my interest! I am trying to learn as much as I can, but it is slow going. It seems there is money in suspense for at least one company. There were some Division Orders that I never saw before…on and on! I have a VERY limited income as about half my monthly income was lost in the 08 crash. Can I get help here to figure it all out? Like, if a company drills in one of my but I haven’t leased them my rights, will get paid anything? HELP! I’m 73 but there is still plenty of gray matter floating around in there somewhere! I don’t want to sell!
Diana,
There are marginal but active wells in the NE/4 and SE/4 Sec. 17-17N-7W. If your minerals are located in either quarter section your original lease is most likely still in force; therefore, someone could drill a new well without you signing a new lease.
Newfield has drilled a well underlying Sec. 17 and Sec 20-17N-7W that has just gone on production. You should receive royalties from this well. I am guessing that the Division Order you received is for this well. Newfield’s filings are a little confusing but the name of the well is either Gilmour or Russell.
It appears that you were sent notice of spacing but not pooling (this indicates Newfield feels your original lease is still valid). The pooling order was just issued last week so listen to M Barnes advice. If your minerals are in the W/2 Sec. 17 you might be able to receive a bonus and better lease terms.
I don’t know why I haven’t been able for a few weeks now to get Mr. Dilks to friend me so I can open a discussion, but I am a little concerned.
At any rate, I am in the middle of chaos here but need to deal with all of this. I now also have Division Orders from Payrock for Wile Coyote on Section 02-16N-07W.
The Effective Date is 3/25/2016.
Personally, I think top leases are a bad idea. Some folks like them. I think that I do not want any title or lease issues to cloud my decisions when the first lease is over. I have seen top leases that were half of the market lease price when the primary term of the first lease was over. Some are better, but not often. I want market prices to prevail. If they are promising you that they are going to “break the old lease”, then you better get your money up front with no risk, because they may not be able to and then you might not get the rest of your money. My two cents worth. Others that like them might want to chime in. It is a risk either way.
Your thoughts are very much appreciated.
Friend me with the blue icon to the left and I can explain in more detail.
Looking at an exhibit for pooling cause 201602064, just posted, it has terminology not familiar to me. For example: “Respondents to delete at address,” and “Respondents to move to curative.” Any chance someone could enlighten me? Thanks in advance.
Answering my own question, after speaking to the land man, I find that “Respondents to delete at address” means just what it says: that address is being deleted in favor of another one.
Curative means that something is unclear on the title and needs to be fixed. The other one probably means an address change, but not totally sure on that one.