I received a request from LuRay Petrolium to lease mineral acrerage in Pottowatomie county, sec. 24 7N 3E. I countered their terms with a higher proposal, making it clear that my terms were negotiable. This was a month ago. Why do you suppose they have not called back with a counter proposal? By the way is there any activity currently in this area?
As I understand the process, the leasing company sends a similar form letter to all mineral rights holders who have a stake in that land. They do not need all respondents to agree only one. They can then go to the corporation commission and request forced pooling who will assign the terms the balance of owners will be paid against.
They are the buyers here and this can be a slow process so a failure to respond doesn’t mean much at this point. Just follow the golden rule, he who has the gold, rules. As long as the rights are yours, you are incharge.
Patrick,
Look up LuRay Pet on the internet. Hard to find? I think you may have been hustled by a "flipper" and you were cutting into their profits. There are legitimate, risk taking operators in Pott CO. Linn for example. Check Clint Liles posts in the county for more operators receiving permits. If you have more than 40 net mineral acres, you can attract some attention. Fairness in a lease also attracts a lessee so do your homework on what unique characteristics you land has to offer. I've had well interests there for over 20 years and a few operators. ACCIDENTAL OWNER is right he who has the gold rules. I also doubt that LuRay has the horsepower to force pool anyway. Good luck
I wouldn't get too worked up about it. Our first offer was really low, we countered really high and it took several months before we heard back. We have 100 net in several sections of 10N-3E and signed a 3 year $180 per net a year ago. There is a little activity in Pott Co.
Thank you all for your input. I'm sure in time things will work out for the best.
Lu-Ray is an operator and has been around since at least the mid 80's.
Thanks Scott, Since 1978. Patrick, These guys have been around a long time. Father and Son it seems. They may know some good stuff about you area. Encourage them to respond. From Manta thanks to Scott's dash.
Business Categories
- Oil and Gas Producers in Oklahoma City, OK
- Oil & Gas Exploration & Production
- Support Activities For Oil & Gas Operations
Lu-Ray Petroleum Ll Clc Business Information
Lu-Ray Petroleum Ll Clc also does business as Lu Ray Petroleum LLC .Business Information
| Location Type | Single Location |
|---|---|
| Annual Revenue Estimate | $1 to 2.5 million |
| Employees | 5 to 9 7 ** |
| Years in Business | 35 |
| State of Incorporation | Oklahoma |
|---|---|
| SIC Code | 138203, Oil & Gas Exploration & Development |
| NAICS Code | 213112, Support Activities For Oil & Gas Operations |
Scott Pipkin said:
Lu-Ray is an operator and has been around since at least the mid 80's.
Patrick,
Partial answer. Some activity five miles north, 1 west of you. June 26, a Final Pooling Order was issued to Truevine Operating LLC for sec. 26-8N-3E . http://imaging.occeweb.com/AP/Orders/occ5018618.pdf Terms are: $200 per acre 1/8; $150 3/16; $0 1/4. The AFE is filed as an Exhibit to Case # 201303302 and shows well name Stone #1-26H, Woodford formation, 4,000 ft horizontal leg.
Don't know what Lu-Ray has in mind, but it is good to see some additional companies beginning to take note of the Woodford in this part of the county. This following link to a completion report shows there may be decent oil in the area. http://imaging.occeweb.com/OG/Well%20Records/1DCFA59C.pdf When the # of barrels per ft of perforated and fracked formation in this vertical well is multiplied by the number of feet in a horizontal leg, it could look good. This well has of course declined as expected, but seems to be holding up. It is not a 90 day wonder.