Has anyone else received a notification from this company regarding a horizontal well application ?
We received the MUH Application for Sec 7 & 18-1N-5W and the Horizontal Drilling & Spacing Application for Sec 18. Also just received lease offer from Sanguine for Sec 5-1N-5W.
Sanguine also has cases pending for 19&30 plus 32
We received a flurry of activity from Uplift Leasing on NE/4 of Section 19-1N-5W. They came up some but it was all less than we’d received from Echo Energy 3 years ago so we declined. Then we got a well proposal from Sanquine Energy with a lease/participate offer. Now we have Multiunit Horizontal Well App and the Spacing Units Ap. We only have 8 NMA involved so we decided just to wait to see what happens next. We don’t know if that is the smart thing to do, but we’ll see.
First, they will space the unit for the reservoir of interest if not already done. Then they will apply for a multi-unit horizontal well, then a location exception if needed, then an allocation. Once all that is done, a permit will be applied for. Along the way, you may get more than one offer. When they get close to being ready to drill, they may pool all the remaining mineral owners. You do not need to reply to the the leasing letter unless you want to go ahead and lease. The draft lease they send will not be in your favor and will require some negotiation. Once you negotiate, do not hand over the original notarized copy of the lease until you get paid. Or you can wait for Forced Pooling. A lot of mineral owners do that.
New to all this, but any idea what is happening in sec 7? We received a document for horizontal drilling and was told they hope to be completed by August.
There are many section 7’s in Stephens. Please give the complete section, township and range.
Sorry, 7-1n-5w also have 12-1n-6w and 29-2n-5w but not much if anything happens in the 12 & 29 from what i understand
Both Sanguine and Continental have filed cases in Section 7-1N-5W. Cases are 202102712, 2714, 2715 for Sanguine. They want a horizontal in sections 7 & 18. Cases are 20220146,147, 251 for Continental. They want a horizontal in sections 6 & 7.
You can look up the cases here. Pay attention to the pooling by Continental if you are not leased. http://imaging.occeweb.com/imaging/OAP.aspx
You should have gotten mailings on all of them if your name is properly filed in the county clerk’s office.
Nothing new in 12-1N-6W at the moment. Part of an old field with stragglers still producing as of late 2021.
Nothing new in 29-2N-5W. Part of a shallow old field with stragglers still producing as of late 2021.
The cases may be heard on Feb 22 and they will decide who gets what or if one operator will do both. May depend upon the reservoir or if there is a fault that clearly separates the interests.
Thank you for that info! Pardon my ignorance but if both companies file does that mean only one will be able to drill or can both? We are currently leased.
Both can be drilled. Might be by different companies or the same company. Usually they work it out at the OCC (Oklahoma Corporation Commission). I have a section nearby that has a big fault running through the reservoir, so one company has the north half and the other company has the south half. Just depends upon the relevant data and situation.
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