Need Advice on Kingfisher County, OK

Oklahoma Mineral Rights Kingfisher County, OK
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Hello All,

I’ve been reading this website for a few years and am impressed with the considerable amount of knowledge this group has. My grandparents grew up on farms near El Reno, OK. I’ve got some great photos from that time, I wish I could upload them here. They left during the dust bowl with two suitcases and a beat-up old car.

I have kept these mineral rights for sentimental reasons, as I love thinking of my grandparents on that land long ago. But now, for health and life simplification reasons, it is time to sell them. It is Section 18-15N-06W, net acres = 60, Track description = NE/4. Apparently I have a 1/8 interest.

I’ve read several posts on how to figure out valuations and I’m still flummoxed. I used the GIS website (https://gis.occ.ok.gov) and a few others (https://imaging.occ.ok.gov). I actually really enjoy any GIS website, it is such a neat way to view our planet. I also read the other posts on this area. I noticed that member “M_Barnes” is really friendly and helpful, I have read several of her posts.

I have received a cold-call offer to sell. The fellow was nice enough but of course this is all business. What is the best way to determine if what he is offering is a fair offer?

I don’t mind spending the time and doing the work to find answers. I appreciate any help that the folks here at The Mineral Rights Forum can provide.

Thank you in advance!

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Ovintiv drilled the first Blaise horizontal well in 2016. The well has an estimated ultimate recoverable of about 1.5 BCF of gas and about 295,000 bbls of oil. To date, it has produced about .58 BCF of gas and 177,106 bbls of oil, so lots of life left. Hopefully, you are getting paid on that well.

What you really need to know is that Ovintiv has permission to drill four more horizontal wells in those sections. LOTS of product is left in the ground. Case 202200193.

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If you received a cold call, my guess is that they offered something for the value of the first well, but probably didn’t tell you about the other potential wells. Gas prices have been very low in the last few months, so operators have not rushed to get too many wells drilled until the prices go up. If you have the patience to wait another year or two, you might want to see what happens. If you really do need to sell, then get a few more higher offers.

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Wow, what great input, thank you Martha!

I was originally contacted early in 2023 and offered $7666 an acre, today they are offering $2500 an acre. I was told that Ovintiv was going to drill more wells in 2023, but then decided against it and that is why the offering price is so much lower today.

I really appreciate the information you included in your post, I read every word of it. I do think that I will wait another 1-2 years (or longer, if it makes sense)

Something that struck me as interesting… My grandfather’s first name is “Vernon” and I see the name Vernon on the Blaise 1506 Infill Wells illustration from Ovintiv. I wonder if he was named after the well or vice versa? Or perhaps no relation at all?

Thanks again. Btw, do you work with/for companies that purchase mineral rights?

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Most bonus offers have been lower in the last year, just competition. Many operators have pulled back on gas wells until prices improve.

Quite frequently, wells are named after the farmer upon whose land the surface location is located. Depends upon the creativity of the operator.

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That’s interesting. The name Vernon is not very common, perhaps it was named after him.

I have noticed the “Mineral Auction” ad on the front page of MRF. Is that a good way to go once I’m ready to sell? It sounds good in theory, as I figure the mineral rights would get a fair market price. Or is there a better way?

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There are several good mineral auction houses. That is one way to get a generally fair market price. They do charge a commission. There are many mineral buying companies out there. Some may be more “fair” than others.

My attorney said “a fair price is a willing and informed buyer under no compulsion to buy and a willing and informed seller under no compulsion to sell agreeing upon a price.” Buyers tend to be more informed than sellers.

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Visit with your CPA before selling as the buyer will issue a 1099. Your CPA will need to determine your tax basis in the property. Generally speaking this is determined as the value as of the date the property was inherited. You will want this information ahead of time. If you search this forum, you will find scores of people posting “basis” questions about tax time. This may impact whether or not you wish to sell.

This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.

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Vernon Hawkins was the original owner of 1/4 In the last couple days they put flags out to mark the location, its in the north west corner of that section. Can you tell me if any wells on this pad are going north into section 7. ?

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Johnny what section, township and range are you referring to? Always include that in your question as the thread can get confusing.

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Hi Martha. I hope you are doing well and we get closer to the end of the year, and got through the drama of this crazy election!

This post reminded me of an application submitted by Oklahoma Energy Acquisitions back in November 2018 regarding a request to establish a 640 acre horizontal drilling and spacing unit affecting mineral property I have in Kingfisher county (located on section 14, 18N, 6W) not too far from OP’s property.

The application, Cause CD 201810111, requested establishment for drilling into the Mississippian (less Chester) same as the Ovintiv application you’ve noted here. It also requests sources from the Woodford and Hunton sources of supply. This document was also mailed with a waiver of consent requirements of OCC rule 165:5-7-6(h) with the same date and language of the application.

Anyway, this application generated a response from Titan Resources, Limited, with a notice of protest filed in December, 2018. The interesting thing is, it mentions Apache Corporation is another applicant in addition to the original applicant, Oklahoma Energy. No other indication of the reason for the protest was noted on the document.

Titan Resources operates an old vertical well in this section, but the last time I received a royalty payment from them was in December, 2021 (one payment during that year). I have to assume, without further information, that they submitted this protest in concern it may have a negative impact on this existing well. Although, I also have to assume it’s about dried up since I’ve never been paid since and coming up on three years.

After about a half dozen notices of continuance, I received a cause dismissal at the end of June, 2020 (order 713040). There was no further explanation of this dismissal. The only reason listed was “The evidence showed that BCE-Mach III LLC did not intend to pursue the relief requested at this time” It said BCE was successor in interest to Oklahoma Energy Acquisitions.

Maybe you can shed some light on this? Another guess of mine for the dismissal is either they didn’t want to spend time fighting Titan’s protest, or the fact 2020 being close to the end of a presidential term, made the company hesitant and proceed with caution until after the election.

Anyway, I’m just curious and wanted your insight into this. Now, with Trump coming back in office, interest in the area might come back, but that’s anyone’s guess I suppose.

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Protests are often filed just so the right information goes to the rights address for the party that is interested. Some are a real protest and some are just for information.

What was the name of the vertical well that you had an interest in? Titan had several wells in that section. Trying to follow the sales to different operators. (Taylor-Bumps Unit 2, C. E. Mitchell, Tyalor-Bumps 1, C.E. Mitchell 2

OEA was bought by BCE-MACH III LLC. They probably had their focus on other areas and didn’t really care about the particular reservoir that was being spaced. Given the timing, they probably already had a drilling program lined up in other sections.

Chesapeake drilled the Earl 14-18-64HC in 2018 (also in 11) Oswego reseroir. They had already drilled the 1H 2H and 3H. They sold the Earl wells to Tapstone Energy in 2021. Diversified has them now. Are you getting paid by Diversified for the four horizontal wells in the section?

MACH has already filed for horizontals in the sections all around you. Mostly in 2023. they are going for the Oswego. That old spacing in the deeper reservoirs just wasn’t as potentially prolific as the Owego given the timing.

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Kingfisher county sec 7 15 N 6 W

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Thanks Martha. Yes, I’m getting paid for the Earl wells from Diversified. Those Taylor-Bumps wells are the ones I was getting royalties from Titan from, and are named after my grandfather and grandmother (Bumps was her maiden name). I’m Mike Taylor.

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At the top of this message, a drilling diagram is shown for the blaise wells that Ovintive intends to drill. They have the location flagged for construction .That is Kingfisher county section 18 15N. and 6 W. my question would be does Ovintive have any plans to drill to the north into section 7 from that new location

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If your name and address are properly filed in the Kingfisher County courthouse with the title documents such as deeds or probates, you will be informed of any new OCC cases for sections. No OCC cases have been filed for section 7 in the last three years. Ovintiv has the Morsman 1H-6X which was drilled in sections 6 & 7 back in 2016. That well is holding both sections in the Mississippian. Ovintiv has filed infill permits in several sections nearby in 2024, so maybe they will come back someday and infill if the pressure is still high enough to warrant the drilling.

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You mention the Morsman well is holding the lease in both sections. The formation collapsed in 2022 and has not produced since. What happens to the lease when production stops ?

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I see production listed for Jan, Feb, August 2022, May & Aug for 2023 and Jan 2024, but not much. May still technically hold the lease. Ovintiv is the operator, so you can contact them and see if they are going to plug the well or work it over.

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Ovintive is building a location for the new Blaise wells

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Thank you for this very important aspect of the decision to sell Richard.

I thought about this too and the fellow at the company who contacted me said the he was also a professional mineral appraiser and he would write a letter supporting that the value at sale was less than the value in 2017 when I inherited it. I know these values are somewhat subjective.

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“Buyers tend to be more informed than sellers” … age old wisdom in so many markets, including the stock market. Reminds me of how retail stock investors don’t realize they are trading with Goldman Sachs or Warren Buffet or possibly even a corporate executive who knows even more about the company than those two. I think it was William Bernstein who said that when trading individual stocks, it’s like playing tennis with an “invisible opponent”, not knowing it is Serena Williams on the other side of the net.

So that said, I know I"ll be at a disadvantage when it is time to sell. I don’t require the best deal, I just want a fair deal. Thank you for letting me know about the many good auction houses. When the time comes I will ask the community to mention a few of these auction houses. I have no problem paying a commission as they are doing some work on my behalf, ideally we both win.

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