Has anyone heard of Gail Austin? She called today and said "she had a buyer for all or some of my mineral rights in Dewey County,, Sect. 14,16N,16W for $3000 a acre) Would appreciate if anyone knows her. Thanks, ED
Continental has a well in 15 that tested 163BO & 3216 MCFG a day . That is a good well and they will drill more. How many acre ?
The best well in the township is in the section next to you. Nothing is for sure , but if they got a well like the one in 15 you should make $3000 an acre in less then 6 month. Also that is for one well, what if they drill 6 ? How many acres do you have ?
It looks like those wells were plugged and won't effect Continental or you. In section 4 and 9 Continental was ordered to offer $1300 for 3/16th or no cash and 1/4th royality. Continental is looking for oil and gas and is drilling deeper and a different type of well then the old wells. Did you sister lease ?
It would have been better not to give an option but that's water under the bridge and it may not matter anyway.
While the well in section 15 had a high IP when compared with the other wells to the northwest in 4 and 9. It will certainly not pay out in two years. I am in that well. It has made 600,000 mcf and 4700 bbls of oil. That is not a good well especially when you consider how much the well cost which was $6,000,000. At $4.50 gas and $90 oil that comes out to $3,000,000 in revenue for the past 2 years without accounting for the taxes. i had seen someone say earlier that the wells would pay out in two which was wrong. they need gas prices around $6.00 to really make these work. if you look at this from continentals side they ate losing money on all these wells. Also, Ed you are correct the option is exactly what you say it is an Option. Continental is going to be renewing these leases but for much less something on the order of $500 and a 3/16 and they will let your option expire so they don’t have to pay that high price for your acreage.
Jonathan WE just got a program this week that gives more info on production , and I see what you are talking about on 15 . Could find no Production info on other wells in 16n-16w yet. The I.P. on the other wells were bad. What got the bonus up so high in the poolings ? What is Gail Austin looking at ?
Ed I hope you are reading this.
It’s simply the fact that they offered someone else in the section or nearby section that amount and were forced to pool the rest of the section for the highest amount paid.