Another newbie here with some inherited property that is currently leased that we recently received an offer on of $6500/acre. We have 12 MA in Canadian County, S24-T11N-R6W and I am trying to find out what kind of activity is going on here. I have several oil companies investor sites and it seems most of the drilling is going on further north of here. I am interested in finding someone to hire to research this area to try to find the potential of making money if we keep the property. I see suggestions to hire a lawyer but none are listed on this site for Oklahoma. We are out of state. Any additional information on activity in this area would be appreciated.
My husband also has mineral rights in Canadian County. I highly suggest you find your own lawyer by doing research on your own. We also are out of state. Go to the yellow pages. Get recommendations. Sounds like these are offers to buy your mineral rights not lease. Be careful. We were offered $8,000 and up. Not interested in those offers.
There is quite a bit of activity in the area. That is why you are getting offers to buy. Any time someone offer you something out of the blue you have to consider "why?". They think they will make a profit at the amount they offered you, so wouldn't you rather have it instead? In my experience, I have seen that early offers are about a third to half or less of what the minerals are really worth.
Jones Energy had a permit to drill a horizontal in your section. It was spud on December 8, 2016, so should be done by now and you should be getting a Division Order pretty soon. The completion order is not posted yet, but should be soon. I think the buyer might be trying to buy that royalty right out from under you before the first check comes-which is large since it has six months of production in it. You are not just talking about the potential for one well here, there is the potential for many more lined up like cigars. In general, they drill one deep horizontal well to the Woodford to hold the section by production. That holds all the shallow zones. Then when the time and price are right, they come back in and drill more wells lined all lined up.
Did you get all the paperwork that went with that well? You should have and if you didn't, then you need to let Jones Energy know your name and address and how you inherited the property or you won't get your Division Order in a timely manner. If I were you, I would not sell right now.
Our trust is listed in a drilling and spacing unit request from Scoop Energy Company, dated Jan 11, 2016. It also is currently leased by Westfalen Energy LLC until October 2018 and we have never had a leased property drill and find anything, so I am uncertain what to expect at this time. I have not received a division order but have been contacted by a landman to "cure title issues pursuant to Drilling Title Opinion" and have sent all the paperwork needed. I will contact Jones Energy and make sure they have all my information. What can I expect after the Division Order. Thanks so much for your reply. I appreciate your help!
The general time frame is that the well is completed and then you get a Division Order about five months afterwards. It takes them months to check all the title for hundreds of folks. You are supposed to be paid six months after the month of first production or they owe you 12% statutory interest (if no title issues), 6% if there are title issues. The completion report is not usually posted with the OCC until about four months out.
The first check will be the largest that you will get because it has the six months of production in it. Don't spend it all! You will need to put half of it aside to pay taxes. The other checks will be for one month.
Just remember these offers "out-of-the-blue" are not worth your time usually. -->They wouldn't be buying it unless they planned on a profit.. a big one.. <---
Thanks. Do you have any recommendations for a lawyer in this county to help guide me?
You may not need one if you decide to keep the minerals or unless you really have difficulty with the title opinion. Friend me with the blue icon at the left.