Mineral rights in Grady County OK

Shales Cana Woodford Shale (AKA Anadarko Woodford)
1

I am totaly new to this and do not understand all I need to know. I have mineral rights to

26-7N-5W

E2/SW/NE;E2/NW/SE;NW/NE/SE (Not sure what this discription is)

Recently received a bid from Bridgepoint Mineral Acquisition Fund for $4000.00 per Acre

Then within a few days received a notice from the Corporation Commision for the State of Oklahoma to Vacate Existing Spacing and Establish New Drilling and Spacing Units

Not sure what this all means, if anyone could be of some help, thank you in advance

Arlen Cranford

2

The last completed well was in 1982. However, if they are going to make an offer like that, there must be some good stuff down below. Are they changing the spacing unit to 640, which is good?

3

Arlen, your section was originally spaced for an 80 acre drilling unit. Continental Resources is now wanting to change the spacing to 640 which is the entire acreage of the section. This means that if a well is completed in the unit you will receive royaltys regardless of where in the unit your particular acreage lies. It will most likely be a horizontal well drilled to the Woodford formation. The spacing application is the first of several that must be made to the OCC before a drilling permit can be issued. It is the first hint that CR may be drilling a well there and Bridgeport must think the chances are good because that is pretty nice offer. Unless you are in immediate need of the money you will probably be better off to wait and hopefully collect royalty payments on your mineral interest. I assume you have leased your acreage or someone will soon contact you about leasing. Don't accept the first offer.

4

Thank you Michael, as I said this is confusing for me I really appreciate the help

5



Daniel A. Thompson said:

The last completed well was in 1982. However, if they are going to make an offer like that, there must be some good stuff down below. Are they changing the spacing unit to 640, which is good?

6

Thank you Daniel this sounds good

Arlen Eugene Cranford said:



Daniel A. Thompson said:

The last completed well was in 1982. However, if they are going to make an offer like that, there must be some good stuff down below. Are they changing the spacing unit to 640, which is good?

7

Arlen,

I have mineral in sections surronding you. Continental is actively drilling in the area. They completed one in Sec 21 7N 5W and only have 3.4 acres. It came in at 365 barrels/day and a good volume of gas. Am leased at 3/16 and pays just under $800.00/Month.

Tom