For what this is worth: I own interest in 17N -1W. Leasing activity really picked up last year in the northeastern quadrant of that township (Antelope). We leased our interest and there is a portion of that township where the rock formation changes, which from what we were told is why there was not an interest in horizontal drilling below a certain location in 17N-1W. We did lease our interest and I have received at least two blind offers to buy our mineral interest, since. There were at least 3 oil companies vying for leases from us during that time on a couple of the sections we own.
Question for Lee: Why is Payne County (which is north of 17N, so much better for drilling? Better rock formation, more potential oil or ? (for us laymen)
Many vertical wells have been drilled all over the area of disscusion.Reveiw of logs from these old vertical wells give companies dierection on which areas might make better H producers than others.Still the only way to know for sure is to drill one and find out.When you see it going in the tank and read the gas meter then you know.Before that its all an educated guess.The definition of Geology is move over a thousand feet and drill again.
Since initial reports are good for the Wolf Well in Logan County what are thoughts of an offer of $300 for mineral lease and 3/16th in the area of section 20, 17N 3W area? How are prices? Osage has been calling. http://newsok.com/osage-exploration-pleased-with-results-from-first…
I can’t said what leases are going for in Logan Co as I have had mine lease for a couple years, but I know Garfield co, which touches Logan to the north is getting about $400 to $500 range and will probably go up.
I will agree with Mineral Joe on you can’t trust oil companies today. They will tell you anything. But, I would sure stay away from Cheaspeake, they are one of the biggest crooks out there. We lease our mineral under our house in Arlington, TX, they drilled a couple wells. I had marked out the part that I would not pay for selling, transportation, etc. This is how they got around it. One of their partners is ToTal, now a French company put in 25% W I. They want to sell their own interest in the gas, so now instead of getting our 27% of our total portion, we only get about 22% of the 25% that ToTal owns. I think our HOA are planning on taking them to court.
McClendon and the entire board of directors need to be replaced at Cheaspeake. If they aren’t, I hope Cheaspeake goes down the tube. So, everyone don’t lease to Cheaspeake, even though you may wind up with your lease sold to them. They don’t even treat their workers the right way.
Devon is also doing a lot of investment backing for some of the drilling in Noble, Garfield, Payne and Logan. Not sure about Kingfisher co. I have had good luck with them so far.
I haven’t dealed with Osage, so I don’t know much about them. I think they used to be a pipeline/investment company out of The Woodland, TX and may have set up a company is CA for the leasing and investor part of the comapny. So, please check them out before you lease to them. I’m sure someone on this site knows more about them than I do. But, everyone needs to check these companies out before leasing to them. I know their are lots of big investment companies out of Houston that are investing in these wells.
Also, be sure to run your lease by a GOOD OIl & Gas attorney or someone you can trust that knows what these leases say. I can’t believe some of the leases I have received in the last few years.
This is a great forum and we thank you all for the comments. We are part of a unitization (water flooding) and are pooled in with others so does that change the price for the leasing and keep it lower at $300 instead of $400-$500? Not sure if they can bypass one if they got the majority. Osage is the one working our area and we are somewhat near Wolf in 17N 3W section 20 in Logan County. That is good advice about a good oil/gas attorney and good advice about not paying for selling, transportation, etc. My father’s family was part of the land run back in 1889 so the area is special to us even if we don’t live there now.
How are you going to lease land that is already being held by water flood/unitization? Unless the unitization is for only one sand/shade, it is being held by production from the water flood. I haven’t found a company that will lease my land that is being held by only one sand in water flooding. I did lease the land next to water flooding and they were able to get an irregular space through OCC.
As far as bonus goes on leases. If OCC spacing are 640, you are all pooled and if you only own a few acres, lets say 20 acres, it cost the company a lot of money to get these small acres and they can drill without your acres. Not sure what it is right now, but it used to be if the company had 75% of the acres lease, they didn’t have to lease your small acres if you where not willing to go along with them. Their is a lot of money that the state gets each year because people don’t understand if you only own a small part of 640 and you don’t want to lease at their price, they can just drill without you. And it can be costly to get your money once that happens. So, once again, oil companies can name their price on small acres. Now lets say, you own 320 Acres of the 640, you can make a pretty good deal. That is why mineral owners needs to put large tracts of land together and try to get a better bonus. Also, don’t forget they may only want to pay you $300 bonus, then ask for 20% instead of 3/16. You may come out ahead if the well is good. It’s all what you know and who you know nowadays. This is a good group as people will share lots of good information. Thanks to all.
Sounds like you can’t believe what Osage says either, wonder if they are any relation to Aubrey McClendon, sounds like you can trust them both about the same.
As for lease bonus, $300 is cheap but if everyone lets them have them for $150-$300 then they can get away with getting them cheap and why they offer so little.
Joe is right.I leased several months ago for 350 and have had offers much higher for what little is left.The only way the price is made public is in a pooling .
You need to get your water flood contract out and make sure they have a 2 years shut in clauses. Have they sent you a shut in check within the first year after they stopped producing the water flood? You may be able to break the contract now if they haven’t. It depends on how the water flood contract/lease reads. I think I would send it to an attorney now as it seem to me that the small company may be trying to hold your lease and trying to sell it for the bonus they can get, this happens a lot. Or you may be free to lease now.
I only live in Oklahoma a few months out of the year, but have lots of property all over the state. I’m not sure what we call our life, it’s living in several places at one time I think.
Usually the company has to make a shut in payment on or with in few weeks after 1 year to keep the lease in effect. You may want to call Donna or Junior at OCC and have them check and see when the last time the water flood produced anything.
I put in all my leases that the payment for any shut in will be made 30 days prior to the expiration. My leases are very long as I don’t like having problems with oil companies. It can get very expensive. I’ve only had one company that wasn’t good so far, but that company has caused a lot of problems that shouldn’t have taken place and now the other companies have to pay the price with my leases. Right now, all the companies that have my leases seem to be good, pumping the wells the right way and keeping my land clean. I just hate juke yards around the well sites. Some of my land goes back to my great-grandparents and we were lucky enough to purchases it from other family members. So I feel it’s my duty to make sure my property is taking good care of as it’s been taking good care of me.
I’m almost betting that your lease has ran out and that is why Osage is wanting to lease from you. Check you lease real good before the company that has it tries to sell it.
Virginia and Robert, thank you for all the great info. We will certainly check this out. Our ancestors were a part of the land run in 1889 so our property in Logan County has a lot of sentimental value and while it would be nice to enjoy a bonus and royalties we also want to preserve the land for future generations to enjoy. We will be checking for a good oil/gas attorney and be sure to check old contracts and potential contracts. We did get a contract on Friday and will be going through it with a fine tooth comb. We thank everyone on this forum. We’ve been talking with our neighbor by phone but he isn’t online so this is a big help. By the way, this link is for Virginia. How this online link helps you find out how your wells, and those around you, are doing. I saw this on the forum: http://www.occpermit.com/WellBrowse/