I received an offer to lease my holdings in sec. 28-6-6. This offer is from Okie energy. Does anybody know anything about these guys. I googled it and there was not much info. on them. Thanks in advance
We were contacted by Okie Energy, LLC recently. You be the judge given the below informaiton, but my impression to date is that this is shady.
They indicated that our existing lease has a depth clause and they wanted to lease the deeper depths. They indicated that they were offering $1500/acre for a 3/16 interest for our 80 acres in Kingfisher county, OK. He went on to confirm that would mean we would have a 3/16th interest in future wells. They confirmed that they were aware of the old (shallow depth drilled 1980) well that has been producing. I told him that we have also been receiving notice of filings for approvals for the drilling or a multiunit Horizontal well. He said since we have a lease already the paperwork he would send over would look a little different that we were used to. In talking to my aunt (who has the other 80 acres from the original lease) he indicated that we would need to move fast to avoid being force pooled.
The document that they sent over is a Partial Term Assignment of Oil and Gas Leases. It conveys all lease rights to them for a 3 year period but if wells are drilled in the 3 years then the agreement is in effect for the life of the new wellbores. It does convey an ORRI interest back to us but the language is so confusing that I can't tell what the actual ORRI interest would be. There is also language that if our existing lease is less than a 3/16th interest we would get no ORRI interest at all. THERE IS NO LANGUAGE ADDRESSING DEPTH IN THE PAPERWORK AT ALL - which was the originally indicated intent - to lease the deeper depths.
* IF our lease does have a depth clause (we are working to obtain a copy) wouldn't we just enter into a new lease for the deeper depths?
* Wouldn't the better party to do the lease with be the company drilling the well? Seems that Okie Energy would just go sell it to them
* Wouldn't the party drilling the well already know they don't have rights in the existing leases to drill horizontals? They are already in the process of prepping the well site.
Any comments or insight would be appreciated. At this point I'm going to say beware of Okie Energy,LLC.
Sabrina, from what you posted I would agree. That sounds remarkably like a Royalty lease and not a mineral rights lease. If they don't mention Royalty I believe it would be because assigning your lease to them accomplishes the same thing because your lease is essentially the Royalty interest.
Think of a lease of mineral rights as a Sale...with the mere possibility of a reverting back to you in the future.
That is how it feels for sure. I've sent them an email for further clarification to see what they say. Is there a proper way to report unethical behavior of this type?
It may be bottom feeding that a mudcat wouldn't stoop to but it isn't illegal. Who does one report legal activity to? I think you are doing what you can by raising awareness here.
Follow up to the above post I made. After more phone calls the Okie Energy landman called me and indicated that was just a big misunderstanding. He said that their employee had called to purchase our interest but switched gears when he found out we had no lease. I quickly corrected him because I don't talk to anyone trying to purchase royalties and we had talked about the fact that there is a well on the property already so unless it was force pooled there is a lease. Besides, the guy had started the conversation with our lease having a depth clause and they wanted to lease the deeper depths.
The agreement they had sent over was to sell working interest ownerships but the way it reads would also have transferred any royalty interests owned. While it isn't the usual way to transfer mineral interests it looks to me like it would done the job. Not a positive experience.