I see that Equal Energy has 3 horizontal wells in Lincoln Cnty Sec.29-14N-5E. The Pegasus 1-29H which they have pooled us on, The Pontus 1-30H and the Deer Valley 1-31H which they have not. I see on the completion reports that the Pontus has laterals in sec. 30, the Deer Valley’s laterals are in sec. 31. Does that mean that only the people who own in the sections where the laterals are get paid royalties? I hope someone can explain this to me-thanks!
Pamela: Without having the time to look deeper, it looks fairly obvious that the Surface Hole Location (SL) for Sections 30, 31, and 32 (in addition to the Pegasus Well actually completely in Section 29) are all initiated within Section 29 and the Bottom Hole Location (BHL) for each respective well along with the dual laterals that Equal Energy normally drills are each within the respective Sections such as Section 30 for the Pontus, Section 31 for the Deer Valley, and Section 32 for the Park City.
So in summation “in my opinion” Section 29 is only going to receive Royalty Income from the Pegasus, and each of the other respective Sections will receive the Royalties from the dual Laterals drilled solely within each respective Section.
If it is of major concern to you, I would not hesitate to call Equal Energy as they are wonderful to work with and you should never solely rely upon an internet posted comment such as mine because I have “not” taken extensive time to do a lot of research other than to examine quickly the same filed reports that you are referring to.
Bob, thanks for the [obviously!] educated “guess” /opinion!
Martha, Hi, and thanks for the maps & info of where to search!
Do I understand correctly that, with horizontal wells, they perf only in the laterals, thereby only having production from them, not from the initial drilling? Guess I don’t know enough about the process itself 
Pamela, HI, you will only get royalties on the section of the hole that is perfed under your tracts.
If you search on the OCC website, you can find the spacing CD#. If you hunt in the case files, look for Exhibits and you can often find the well paths. If the well is a really long lateral, usually somewhere in the case file they will list the predicted split between two sections. Final designation comes after the well is finished, but is usually close. Posted the maps for you below.
Pontus Section 30 http://imaging.occeweb.com/AP/CaseFiles/OCC4305224.PDF
Pegasus section 29 http://imaging.occeweb.com/AP/CaseFiles/OCC4342295.PDF
Deer Valley Park City Section 31 http://imaging.occeweb.com/AP/CaseFiles/OCC4366207.PDF
they only perf in the laterals on a horizontal well (as far as I have seen).
They can come back later and perf the vertical section in a different zone if they have reserved it by leasing or force pooling. That is why we are seeing a lot of multi-zone FP orders now so they don’t have to come back to the court.
Thanks Martha.
What are the prices being paid for gas line easements per rod in Lincoln County Oklahoma? Thank You
The lease terms are the same.
Once your lease is signed and filed, it can be sold to any other company. They must abide by the terms of the lease. Make a note in your files of the new owner so you will have a record of the change in holder. Happens all the time.
I signed a lease with Equal Energy recently and now they are being bought by Petro. No drilling has started. So what does this action mean for anyone like me? I would appreciate any comments.
Thank you Ron McKenzie and M Barnes
We have just been contacted by Calyx Energy. Our location is Section 27-T17N-R4E. (Well proposal-Smith 27-17N-4E 1WH Lincoln County Oklahoma).Calyx will proceed with applications for drilling of this well,including spacing and pooling. What is the best option:1.$250 per net mineral acre bonus,1/8 royalty, 1 year term 2.$200 per net mineral acre bonus,3/16 royalty 1 year term or 3.$100 per net mineral acre bonus,1/5 royalty, 1 year term. The proposal is for 20 acres. I am new at this and have no idea what to do . Your help would be much appreciated. Thank you Derrick Dean
Derrick, Mick Scott posted on Mineral Forum July 2012: “Lease offer for $200/acre, 3 years, at 3/16 royalty received in 22-17N-4E of Lincoln County, OK.” One would hope offers have gone up since then. Maybe some other’s know of more recent offers.
Is there any activity on section 13-14N-4E in Lincoln County?
There is a well in Sec 14-14N-4E, the Vesta, and four wells in 16, but nothing new in 13 as yet. All by Equal Energy so keep an eye open.
Crystal, Most OK minerals are going for a lot more than $400 per acre. Some companies send out those letters hoping to find someone badly in need of money and that doesn’t know what their minerals are worth. The company that took your lease will most likely drill and you will most likely get production. What company did you lease to?
Martha, Remington wants to purchase. I am currently in a 3 year lease with 2 years left.
Thanks for the help! Do you know how I can find out whether or not my area is in a drilling area or not?
Crystal, Calyx takes leases then drills accordingly. Some of the leases expire before others and they have a lot of wells to drill. Here’s the Calyx website. http://www.calyxenergy.com/owner-relations/
Crystal, Remington probably wants to lease your 5 acres, but without seeing the letter I’m not sure if they want to lease or buy or minerals and there is a big difference. Have you already signed a lease and received a check for a mineral lease?