I5-14N-06W offer to buy mineral rights was received today, and I also received two packets from OCC concerning Ovintiv seeking increased well density and multi unit horizontal well relief.
I’m new to all of this and wondering what all this activity means.
Many buyers send out letters to mineral owners in sections that are about to have more wells drilled. They tend to offer a discounted rate for just the current producing well(s) and not the additional wells as that is how they make a profit.
The increased density means that Ovintiv is going to drill at least one more Woodford horizontal well in 15-14N-6W. You also have a second increased density case to drill an additional Mississippian well. So at least two new wells. The maps show three new wells. In my experience, the additional royalties from the new wells (if successful) far outweighs the buyers’ offers.
The hearings for the wells are in early April. It will take about four-five months to drill and complete the four wells, so you may see additional royalties in about a year. You do not have to do anything, just sit back and wait.
Thank you for the helpful information!
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