I have a small piece of this section inherited from my grandfather. I have been receiving offers since last year. The current offers are purchase offers not lease offers at $3,000 a net acre or a little more. I am trying to judge whether to lease or sell. It appears that there is plenty of drilling and production in the immediate area. Has anyone had dealings with Wake Energy?
Thanks, Sheppard.
I am in 6n-4w and 5n-4w . I just leased 7 acres from my sister in 17-6n-4w and gave her $1500 an acre for 3/16. Most of the wells in the area have been vertical wells, however Newfield has filed paperwork for several horizontal wells in 6N-4W, and continental is also acquiring property in 6N-4W and 5N-4W. They too will be drilling horizontal wells. I don't know your specific circumstances, but i would lease instead of selling.However, if you do sell, $3,000/acre seems low when you can get $1,500/acre for a three year lease.
That section was pooled by Bays on June 30. $900 3/16, $500 for 1/5 $0 for 1/4.
If you have not leased you have 20 days to respond.
I would suggest accepting the 1/4 or 1/5. Bays pooled it for a vertical, but would think that horizontal Woodford might follow and they are trying to hold it. This is in the Woodford oil zone which is not as popular as the condensate zone at the moment, but probably will be. I suspect Wake is trying to get a piece of the action. $3000/ac seems to be a common theme, except for the $3500/ac offered in 19 right next to you.
I am from the "never sell your minerals" camp, but you need to do what is best for you. I think in the long run, you will do better if you lease.
I am a total neophyte and have been working to learn a new vocabulary. I am inclined to lease. I'll give some of these folks a call to see what they say.
Is there a place I can find exactly what pooling is, or can you explain it in a few simple sentences?
Thanks for your responses M. Barns & McKenzie.
Sheppard Here are two poolings to look at . Next to 6n-4w in 6n-5w where they have drilled some horizontals. Notice difference in dates and amounts they were ordered to pay.
What is a “forced pooling”?
A: “Forced Pooling” means that under Oklahoma law the oil company can force those who are undecided to make a decision. If the oil company cannot successfully get all the owners within the unit to agree as to how to develop the unit, the oil company can apply to the Commission to have those people or other oil companies who have not agreed, force pooled into the unit.
Sheppard, you do not have to lease, so forced pooling is the other option. You will be offered two-five choices of bonus and royalty as listed above. Then you have 20 days to decide. It is essentially a six month or a one year lease with some implied clauses due to law. In some cases, it is the better decision than a lease.