I recently received a lease proposal for a very few acres that have come to me thru inheritance, etc.
This is in Sec 35 4N4W. The proposed well is Nightingale 0304.
It is offering $500, $350, $275 for 1/8, 3/16 ,1/5 royalty.
All the other small bits I’ve got have been “under production”, and I didn’t deal with this end. My inclination is to just take the 1/5th royalty, not quibble-accept cash offer, and hope for a well to come on in the future. Is that off-base?
Take the 1/5! This is the first I have heard about this well. This on my section as well! How exciting! Tom
According to the paperwork, the “hole” is in Sec 2 3N 4W, and it ends in Sec 35…
If you have any diagrams or maps with your paperwork I would sure like to see it! Tom
There were no maps, just a statement of costs. A long statement of costs, $9.8 million. So, I couldn’t quite scrape together the ready cash to participate by paying my full share.
It says it will be multi-unit horizontal. 7500 feet lateral across sec 2 and 35.
Approx vertical depth of 10,700 ft; total measured depth 18,000 ft in thd Goddard formation.
Trust me that there will be better offers. Don’t jump.
Thats the part I don’t get. Do multiple companies make offers on these deals?
Also, I thought there was usually an option to get a very low up-front price and take and 1/4 stake on the Royalties.
Like I mentioned, this is small. I think about 3 acres m/l, so its not going to be a huge windfall. Just didn’t wan’t to act in haste.
There can be multiple offers for good acreage. I usually wait and see and then decide closer to the pooling. Sometimes pooling is the better answer. Also, if you have never leased before, this is a good time to get an attorney to look at any draft leases because most of them are not in the mineral owner’s favor. It is likely that you will need some edits in order to protect you more.
So, if I do not respond, I will later have other opportunities to choose the royalty %?
That is my main concern, choosing to receive the largest royalty percentage.
No promise on other leasing agents stepping in, but you do usually get the option of force pooling at the end of the time line. The options offered at the force pooling are “supposed” to be the highest offered in the continuous (touching) sections and the current section within the last 12 months. You than have 20 days in which to answer the pooling order.
I’d negotiate for the 1/4 then see and also not except anything over three years or a renegotiation of terms. If it goes to forced pooling now days the lease pay will be far better than the offer you just received. Patience is the name of this game, Believe me, and remember they’re just seeking profits which are never in your favor.
If this is your first time to lease, it would be wise to let an oil & gas attorney look at the draft lease. The first one is rarely in the mineral owner’s favor and needs quite a bit of negotiation to get more in line.
I got the paperwork from the Corp Comm filings today. Very small print but there was a map attached. Since some interest was expressed in this, I’m trying to upload it. Don’t know if it will work. First try at this.
Rimrock.pdf (491.8 KB)
Yes, the map came through fine. We will see on June 20th if Marathon or someone else protests this proposed well! I bet they do. We will see! Thanks
They are trying to fit that well in between two big faults along the 100’ thickness zone.
Martha, do you have a copy of a map of the fault lines in this section along with section 33? I appreciate it! Tom
http://ogs.ou.edu/docs/openfile/OF2-2016.pdf I am working off of this map and an old one from my grandfather’s personal files. There might be some newer ones from OU or OSU students or the OK Geological Survey.
If anyone is still interested in this matter, I got a certified letter from Barnes Law with the pooling application a few days ago. Applicant Rimrock Resources seeking to pool interests in the Goddard common source…
I also sent an email to Rimrock today inquiring about a 1/4 royalty option. Its seems Rimrock (in Tulsa) has a subsidiary or partner named Bearcat Land in OKC. Guess Rimrock is the driller and Bearcat the land company.
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