I’ve been recieving lots paperwork over the last week, from an Attorney in Tulsa. Not sure what’s going on, can anyone fill me in? And now the offers to purchase, are coming in.
We would need to know what the paperwork is. With that said, I suspect a company is planning to drill a well or wells. Also, if parties are seeking to purchase your minerals, that’s a good thing. If you get a lease offer, then you should consult with a knowledgeable professional regarding it.
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If you are receiving case documents, put them in numeric order and date order and read them as they will explain what is about to happen. If purchase orders are coming, that is normal when new wells are about to be drilled. You do not have to respond to them unless you really need to for financial reasons. In my experience in Grady, the resulting royalties far outweighed the buyers initial offers. As Tim said, consult with an attorney if you plan to lease. The draft leases are rarely in the mineral owner’s favor and need significant edits.
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I believe they are case documents. There are many.
- Increased Well Density.
- EXCEPTION TO OAC 165: 10-13-9 AND OAC 165:10-17-11 (SEPERATE ALLOWABLE)
- Multiunit Horizontal Well,
- Amendment of Pooling ( change of operator)
Continental has the lease, but I guess this means the operator is changing to Validus Energy II Midcon ??
What is the case number on the increased density? If you want to share.
It is typical to get offers once an increased density case is posted. Some buyers have statements such as “we will pay 60x your current royalties” but they are only offering to buy the royalties from the first well that is in decline. They neglect to say that they plan on making a full profit off the seller in about a year on the coming increased density wells.
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Lots paperwork? Rather hard to give advice based on that, but given that you dont know about the properties paired with new offers coming in, Im assuming an heir of yours recently passed away or passed away awhile ago and you didnt know that you had minerals? Sorry for your loss if so. If thats not the case, then you will need to provide legal descriptions for better guidance on to whats going on.
I believe they are case documents. There are many.
- Increased Well Density.
- EXCEPTION TO OAC 165: 10-13-9 AND OAC 165:10-17-11 (SEPERATE ALLOWABLE)
- Multiunit Horizontal Well,
- Amendment of Pooling ( change of operator)
Continental has the lease, but I guess this means the operator is changing to Validus Energy II Midcon ??
Section 14-9N-7W
Cause No. CD - 2024-001661
Validus Energy is planning two more infill wells in the Mississippian in 14/23/26-9N-7W. Aoudad 0907-142326-1 HM & 2HM. Validus wants to take over the operations from Continental Resources. You may get offers to buy which is common when increased density cases are posted. I ignore them as I want the royalties instead. The original well has an estimated 4.9 BCF ultimate recovery, so I expect the new wells to very good.
Thank you! This sounds like good news . I have no intentions of selling, these mineral rights have been, in my family for many generations. I wish, I knew more about this stuff , in order to better understand it all, but have no idea where to even start. I appreciate your knowledge greatly!
If you are new to this, read the Mineral Help tab above. Read the links in Grady county to get an understanding of what is going on in the area. The National Association of Royalty Owners Oklahoma Chapter is giving webinars and townhalls and convetions where people can learn. www.naro-us.org
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I will check everything out, Thank you!
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