I have an interest in CC 23-1S-3W & 15-1S-3W. RFC sent a letter stating that since my interest were being “Held by Production” and they want to purchase my interest. It is one of many letters I have received but this letter is the first one to state things are being held.
I can not understand why they are not drilling! I have property in Panola County, TX and they just drilled a new well near me and my royalties exploded!
Any idea of what is happening? Thank you in advance for your replies
Sections 23 and 15 have shallow production that is quite old-23 started in 1920s. If you are receiving royalties, then you are held by your (or your ancestor’s) earlier lease or pooling. Are you getting the royalties? If not, investigate. 15 & 23 are both in the Tatums Field Unit. Many, many wells have been drilled there.
Your property in TX has vastly different reservoirs with completely different economics.
This part of Carter County has a developing deeper Woodford shale horizontal play which is why you are getting offers to buy. Your section 15 has a permit for a Saltwater disposal well which is a hint that horizontal drilling may be coming for your area.
I have never received royalties in the 6 years I have owned them. Are my royalties on hold due to the archaic lease I have? Should I hold out or try and sell my royalties?
You need to do some research. Did you contact the operator of the wells in your sections when you inherited to get into pay status? That is the responsibility of the mineral owner. They will require probate or other title documents. Have you checked the unclaimed funds at the state treasurer in OK (if you live there) or the state of the person who you inherited from. If you sell your minerals and have outstanding royalties, the buyer may get them depending upon they date the sales agreement. Try to get your title and royalty situation straightened out first before making any decisions on selling. https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx
You can look up the wells on the website above. You may have to hunt down several operators.
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