New to the forum! Does anyone know the results of the pooling hearing for Section 11-1N-6W & 2-1N-6W? I have been barraged with lease offers. This is my great grandfather's mineral lease so I am a bit new the this game. Any updates would be appreciated!
Section 2 apps are being heard on the 6th, Section 11 on the 13th. It is not uncommon to see them continued/rescheduled many times.
You can either follow them on OCC's case processing Web Application or watch the case numbers here http://imaging.occeweb.com/imaging/OAP.aspx and look for documents to be added and/or and order to be imaged and archived.
Thanks Rick. It is my understanding that...unless I lease to someone...I will receive the highest amount paid for lease/royalty of my sections but also the eight adjoining sections, too?
John,
That is the basic theory but not entirely accurate. All of those transactions have to be considered. However there may be testimony entered to dismissing some as they may not be relevant to this specific case. In my opinion this is being manipulated somewhat and has been a discussion at the OCC in the recent forced pooling rule making sessions I recently attended. There are also 3rd party lessees out there that are not submitting the prices paid for various reasons. I also believe there are landmen that are deciding what they should or should not testify to at the OCC instead of presenting the data and their reasons for the Judge to make a decision to exclude.
If your only concern is the price paid for your lease, you need to do some more homework on it. It is way more complicated than that.
Thanks Rick. I obviously want to maximize both! But I would rather have 1/4 royalty as opposed to more up front cash. What is going on down there anyway....I get calls every other day from land men. Continental must really think there is a good play there?
The best offer I've had in 15 1N6W is for $1750 and 1/4 royalty for three years. $20K to buy outright. I'm previously leased so can't cash in on the lease offer, but the land man who offered the 20K was aware of the current $500 & 3/16 lease with a two year option. I turned him down. Lots of big expectations in 1N6W!
I suggest working with a good 3rd party and getting that 1/4 with some good clauses. I don't believe you will see big numbers on with a 1/4 on the pooling order. I'm pretty sure the most we have seen on a Continental pooling order in Stephens county is $300. I think it must be a pretty hot play. I've had several lease offers for our open acreage in the area. I've had several purchase offers but I think the highest was $6500. 20K, I might have to consider a bit before I turned it down.
One of our best income producing properties is in the Springer about 2 miles from yours. Has been that way for 20+ years. I think there are about 3 potential formations that may be worthwhile in this area.
Kenneth,
Do you mind sharing the source of those offers here or privately?
My lease is up next summer in Section 7, 1 North, 6 West. I expect to hear something soon on the 2 year option.
Earlier, Rick was referring to Springer production. Just on your east side in 12 is the EOG drilled Bonnie Lou. Completed in 1994, it has cumulative gas of 1.2 BCF and 21,000 BO from the Springer Underthrust from 11,400-13,500. So the Springer source rock is confirmed in 12. What's really good here is the ISIP of 6750 psi. This is the surface pressure and not the bottom hole pressure. Who knows how much fluid was in the hole when this measurement was taken. So, in this case, the formation pressure is greater than a standard pressure gradient of .433 psi/ft. Might just have to order the logs for the Bonnie Lou....
TERRY ARMER ELLS said:
THIS MONTH ITS ODDLY STILL..BACK IN JULY N AUG, OFTEN THE MAILBOX WAS FULL...BUT, I HAVEN'T GOT ANY FOLLOW-UP.. MY BEST OFFER?...LONE STAR, 3,600 3/16THS PAID IT, TOO
Hi Terry,
What is Lone Star's contact info?
If I don't lease my mineral rights how will I receive my royalties? I got a pooling notice from Continental's attorney and then started receiving several offers to lease. I was in the beginning stages of negotiating a lease but still haven't signed one yet.
Hi Brie,
Here's what my friend who is a land man in Tulsa told me regarding the forced pooling. I get letters and phone calls every other day.
"The $1700 x 1/4 your mom got would be minimum as one of the election options in the order and it'll probably be even higher by then ($2-$3K x 1/4 I'm guessing). Also, the term of the pooling is only 6-12 mos. (depends on rig availability in the area), so your interest wouldn't be tied up as long if they don't end up drilling a well in here. Keep me abreast. It's kinda fun being on the royalty owner side of a deal for a change."
Can anyone help me I know nothing. I inherited 16 -2s-4w. I have 6 acres. I’ve been offered 6,000 an acre. Should I sell or not? I’m so confused on how this all works.
NO....I have leased little pieces of an acre for between 400$ and 3050$ per acre plus 3yrs. of 3/16 of the royalties as divided by the number of those who leased...kinda. Of course there are state and fed income taxes to consider, but i consider my leases/ royalties to be a great addition to my retirement....teri
Thanks Teri so much.
Do you still have your leasehold?