Thank you all…good stuff here. However I am still trying to sort out the question on what I must do to free up the deep rights or specifically who can I contact with Citation to send a drill or drop request prior to filing a court action. any help in this will be greatly appreciated. curious what prices anyone is hearing …we had an offer from Milestone to lease for 2000/acre until they found out we were hbp from the old lease. then an offer of 6000 to purchase the deep even though it is hbp and we keep the shallow rights and current production revenue. Thanks again folks…good problems.
Very hard to break those old leases. Good luck.
DHawk,
In order for the deep rights to be free, the original lease that is HBP’ing the property would need to include a specific “Depth Clause.” As M_Barnes alluded to, those very old leases frequently did not include depth clauses. If your lease does not contain one, you may have a very difficult time getting the oil company to release the deep rights and that effort will most certainly take place in court. If you have a copy of your original lease, read it through and see what it says. If you do not have a copy, request one from the Milestone guys. If they are saying they won’t lease you because the original lease has you HBP, ask them to prove it with a copy of that original lease.
have to check one more time…is there a woodford and/or sycamore well recently drilled in S7, 1S, 3W. Thank you
There are pending cases for horizontal well in sec 7 in Miss, Sycamore, Woodford spacing. Echo Operating has a pooling case for Mississippian, Woodford. May end up being Continental.
Looks like the Echo Pooling & Spacing were dismissed. 89 still has pending Spacing and location exemption apps to be heard again on 8/6/19.
Any case numbers on 89 app? thank you
201903484 Spacing (Caney, Hunton, Sycamore, Woodford) & 20193485 Location Exception. Currently no protests filed for either
It’s does have all those descriptions on them but doesn’t mean anything to me … also I saw something about the cases w echo for the pooling an spacing has been dismissed what does all that mean ?
Thank YOU. I wonder what 89 etal are going to do with all that section 7 virtually being held by production in the Franklin Unit by Citation. I guess ? citation will be farming out to 89 or be forced to participate…any Citation contact who might know what they are doing? S7, T1S, R3W
Thoughts on 89 as an operator? Or, is this their 1st “go” at it?
Time will tell. This is not their first go, but I am not sure the first round went entirely well either. I believe their private equity sponsor had 3 companies they were sponsoring in the same area and eventually rolled up all 3 into one. I don’t believe 89’s management made it through that, but they have apparently found another sponsor and are getting back after it.
Sorry I replied in the wrong county before. I just wasn’t sure how to approach the company wanting to buy a portion of our mineral rights in carter county We have them already sending us a contract but I am not sure who to discuss this contract with
There are a lot of pending horizontal cases in Carter County, so quite a few companies want to buy up acreage on speculation. There are some shallow fields and where available, there are some deep rights with potential Woodford shale. The shallow wells are very old and not worth much. The deeper Woodford could be quite valuable. The offers I have had on my acreage in Carter were lowball in my opinion. I save all offers, but am not selling at this time as it doesn’t not make economic sense to me to give up the royalties of the future wells. I may be right, or I may be wrong, but doesn’t cost me anything to hang onto the minerals and find out.
What section, township and range? Whatever they offered you, never accept the first offer. Really think about why you might want to sell. Do you need to, do you have special needs like medical bills, are you curious, do you have an investment strategy that this would fit? Do you need to sell some or all? Or none?
The are in section 7 area … the wells we have on there now have been producing for at least 40 years and those are not up for sell but the company is wanting to buy deeper rights in that area. But I had already told them the revenue we get right now is not up for sell I just don’t know why they would want to buy deeper unless they are speculating something in the future happening.
There are MANY section 7’s in Carter. That is why we need the whole address with the township and range. Yes, they are expecting much more lucrative profits from the shales underneath (and they hope you don’t know about them). If you give me the whole description, I can look up and see if your section 7 is in an area that is about to be drilled. If so, then I would not sell, but you may have other priorities. If so, then getting a fair price would be important to you. At this time, do not sign anything until you understand what is under your current production.
Here is a map of Carter County to help you locate where your minerals are. Carter County Map.pdf (425.7 KB)
It’s sec 8 township 2s range 3w
If you meant 8 instead of 7, then your shallow rights are in the Velma Camp Deese Unit which is an old waterflood unit in the Deese Sand. Echo has pending cases for one or two horizontal wells under that section. They may have sold to Continental and I know they are trying to buy acreage as they have offered to buy some of mine nearby. One well is for the Mississippian reservoir and will go through sections 5 & 8. The other well is planned for the Woodford I suspect. Case numbers are 201803851 and 52. Both cases read nearly the same, so not sure if they are asking for a different well. The placement of this first well or two leaves room for quite a few more wells. This is why they want your acreage. They are trying to buy up the acreage before they start drilling.
You should be getting these cases in the mail.
Wondering if I should just sit on it and see what happens they are offering an ok amount just need to decide if that’s the way we want to go. But I’m for sure not selling the shallow rights
I wonder if you can help me to understand what I have. I have recently inherited mineral rights in Carter County and I know nothing on the subject. The more I try to learn about it, the more confused I get. It is very complicated.
I am told it is section 14-02S-03W. This belonged to my grandparents, was transferred to my Dad, and now passed to me. I know it is “held by production” and I have received several offers on this now.
I do not know if it would be more wise to hold on to it, or to sell. I have no idea what a fair offer would be. Any advice or suggestions would be greatly appreciated.