We had an offer of $500/acre bonus at 3/16 for a lease in Sections 21 & 22-16N-25W, Roger Mills Co. Anyone else in Roger Mills received offers from Osage Oil and Gas on behalf of Redhawk Resources? Is that offer competitive for the area?
Welcome to the forum.
Cannot comment on the bonus amount since it is private, but the 3/16ths royalty is common in recently filed leases.
If you are new to leasing, the Mineral Help tab above may be useful. Also, get a good oil and gas attorney to review the draft lease as it will rarely be in your favor. You need some significant edits.
Anyone had leasing offers from Aztec Petroleum in Sec. 13-14-24 or 24-14-24? Not familiar with thst company.
We just received an offer to purchase rights on 30-16N-23W and 25-16N-24W. They had originally been fracked around 2010-2011 and produced nicely for several years. They were finally shut in in 2022 and 2018 respectively and are no longer producing.
The offer we received was about 1/10 of what the total production was during those years, and I’m curious as to why they would offer so much for two depleted wells. I can think of a few reasons:
- Wanting to re-frack with modern technologies / sand volumes
- Want to do a second (or more) horizontal drill in a different direction(s)
- They looked at the available data and think they can get more out of the hole as-is
- Some combination of the above?
The offer was too high for them to want to just sit on this without concrete plans. On top of that, it was an unsolicited offer with the “we can draw up the paperwork today” urgency.
My gut tells me to sit on this for a while and see what develops. People don’t offer to pay tens of thousands of dollars to buy up dry wells.
Thoughts?
Your gut is right!
Offers to buy usually come before the bit and in this case that is true-twice. Crawley Petroleum Corp is drilling the GLASS 1-25-24CHX well in sec 25 & 24 in the Cherokee formation. Spud on Jan 2, 2024. Two horizontal wells were still active in the section 25. 25-16N-24W. Contact Crawley for information.
Buyers often send out letters to the surrounding sections. I see two wells still online in 30-16N-23W, It also has a well planned. Upland has a multi-section well coming. You should have gotten all of the paperwork from the OCC on both of those wells. If not, contact the Upland Attorney for the new well in 30.
The pooling is pending. Case 2023-002705. You may or may not be on the respondents list.
Wow, that helped quite a bit.
So if you don’t mind, I have a few more questions to ensure I’m understanding this correctly…
- Crawley is drilling nearby wells in our section 25-16N-24W. If I’m understanding that right, we would want to contact Crawley to see if they have interest in leasing our mineral rights?
- I’ve looked up the case number you gave on the OCC website and here is what I (hopefully) understand from reading: Upland Operating LLC is petitioning to “pool” a number of different mineral rights owners together so that they can more efficiently drill within section 30. Those who agree to be in the pool would get a share of the oil from each of the individual wells drilled?
The next question is more of a problem. The two wells are in a trust, but the successor trustee didn’t name a follow-up successor trustee and died unexpectedly in 2021 while living in Washington, DC. My fiancé is his widow. We knew about the mineral rights, but also knew they were no longer producing so didn’t think much of it. Other than that, he died penniless so we didn’t bother going through probate.
This may be outside of your wheelhouse, do you know how we would get these rights into his widow’s name or get her on the trust? I imagine this is a pretty common issue. Feel free to send me a private message if you need more details.
She needs to get a probate attorney asap to straighten out the trust and probate. There are rules for how to do that. She cannot lease, buy or sell what she does not have title to. One of the attorneys on the forum may comment on how to do it speedily.
She can contact the operators immediately in the pertinent sections and tell them that she is in the midst of correcting the title issue and all information is to come to her. They may not agree since she does not have title.
Depending upon if there is production in a section, it may be held by that production and there is not opportunity to pool or lease as the old lease terms will continue. Once things are straightened out, you can either pool or lease if there is the opportunity, but not both. She may be able to send a pooling response (I pick the highest royalty) within the 20 days and have it pending the resolution of the probate issue.
You really need an attorney to walk her through this properly.
We just got an offer from Aztec on Section 13-14-24. I just posted a topic on what are the downsides of doing a lease on wells that are currently held by production and are still producing fairly well.
Aztek is seems to run by a landman out of Fariview, Oklahoma.
Our family has minerals in 13-14-24 also. We’ve been negotiating with Aztek but have not signed anything.
Go back and read your original lease to see if you have a depth clause. Ask the agent what zone is he leasing for as you are already held by production. He/she may not have done their homework as to whether you can lease. Some landmen contact everyone on their list before they actually do the title work to see if the contact can lease or not.
@RLMaxon @Linda_Jenkins The Maxon 2-13H, 3-13H, 4-13H produce out of the Marmaton. The upcoming drilling play is in the Cherokee group just below the Marmaton. If your lease has a depth clause, then depending upon the wording, you may or may not be able to lease. If your lease does not have a depth clause, then the current wells may hold you to the center of the earth.
(https://scholarworks.sfasu.edu/cgi/viewcontent.cgi?article=1292&context=etds)
I would encourage you to get an attorney to review any new lease drafts and your old lease to make sure that there is no conflict.
Yes. Aware of this. Thanks.
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