We have residual rights Section 30 Township 25N Range 11 W Alfalfa County that we were being paid a small amount on up to 2016 from DCP. When the checks stopped they said there were no more producing wells since 2005. We were recently notified of an application by Aexco to open a new well, (hearing date 7/23 )then we were sent an offer to buy our interests by Mission Oaks. (expires 7/27)We believe DCP lied to us as the Aexco notice stated that there was still one operating well. W are completely in the dark about what is going on and would appreciate any information.
Green well has had no production in the last 12 months. The Cullen 1-30H has had production. NGL Crude and Tall Oak MidCon are the reporting companies. Depending upon your description of acreage, you may or may not be a part of the Green 1 well. There was also a Green 2. You should have been paid on the Cullen well from 2015 on if you are in the W/2 of the section. If in the east, then that is different. You probably can get a new lease.
Our interest states meter #OA5183-00 -Okla Super Plant- operator COG Petroleum. We inherited our residual rights from our father who inherited his rights from his mother.We have no idea what the lease says, much less how to get a new one.The main question is should we accept the offer from Mason Oaks or is there a greater possible benefit from the new well application by Aexco to open a new well?
Thank you very much for your response.
The question is what do we do about the offer from Mason Oaks. They have offered us $2400 for our interest.
We discovered the interest 4 years ago in unclaimed funds from our father and obtained 26. from the unclaimed funds and after a LOT of legal paperwork signed up to receive ongoing residual direct deposited. We got $34. in 2015 and $34 in 2016 then the payments stopped.
Please let us know the chances of us “hitting it rich” with the new well that Aexco notified us they are applying for July 23, or should we take the “bird in the hand” offer from Mason Oaks.
Anyone who offers you money to buy your interest is pretty sure that they will make a profit and therefore, you will not make that profit.
I am in the “hold onto your minerals” camp if someone offers to buy. They know something you do not. Striking it rich might be overstating it a bit. But more than the sales offer is possible.
You need to contact the companies that you received the checks from and see if you can get a copy of the original lease from them. You need to do some research before you consider selling. You need to track down a copy of the deed, or probate documents to get a description of your acreage. Every family needs to make their own decision and sometimes it is okay to sell, but not before getting informed as to your real value. The newer wells, especially if horizontal, are usually much better wells than the old vertical wells. Come back with more questions. That is what we are here for.
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Thank you for your response.
We were able to find some data on 3 wells ( attached).
I can’t figure ANYTHING out from this data other than it appears we have an interest in 2 different fields ( I think)
Could you please decipher these for me?
Data on 3 wells for Mineral Forum.pdf (51.4 KB)
I forgot to provide you with the basis of the Aexco application to dig a new well.
AEXCO Petroleum Acquires Oklahoma Mississippian Assets
AEXCO Petroleum Acquires Oklahoma Mississippian Assets
DENVER, CO–(Marketwired - May 04, 2017) - AEXCO Petroleum, Inc. (“AEXCO”) has acquired Juneau Energy&…
We contacted Aexco and found our interest is based on a non participation royalty deed. The “lease” is apparently a reference to the developer’s lease. As we understand it, our interest will never terminate. Aexco is very optimistic about their new extraction methods and tells us we can expect to match the offer from Mason within 17 Months of production. Obviously we are going to refuse the offer.
We have not accepted the offer as in conversation with Aexco we were told that we were likely to recover the amount offered within 17 Months based on their track record for other sites. They filed for a new well on July 23rd and the records indicate that the approval is pending because the OKC needs their “volumetric exhibit”. I can guess that this is some sort of testing data??
The volumetrics are on the OCC website now for the increased density hearing.
Thanks, now we wait for results!!
We have received a new offer from Southwest Petroleum Company and we are confused as to what % means.
Here is what they are offering;
Mineral and Royalty Conveyance
Alfalfa County, Oklahoma
Dear Interest Owner:
Southwest Petroleum Company, L.P. is currently purchasing mineral and royalty interests in several areas of Oklahoma and would like to purchase the interests that you own and referenced on the enclosed Conveyance.
In order to calculate the amount we are willing to pay to you for your interest, please refer to your Aexco Petroleum royalty check stubs and locate your net royalty DECIMAL INTEREST listed for the Macleod well(s) and multiply this decimal by the following amount:
$3,000,000.00 For example: If your decimal in the unit/well is listed on your AEXCO PETROLEUM check stub as 0.0025000, then your offer would be calculated as: 0.0025000 x $3,000,000.00 = $7,500.00 total payment to you for that decimal. Note, the above $7,500.00 offer is simply an example of how to calculate the total amount we are willing to pay for a decimal, and
Our statements from DCP s shows we each have .02480500 interest which my calculations show come to $74,415 each
My brother says that it is $7,441.50 each.
This is not a “mineral” question but a question of interpretation of the figures.
My brother says to determine the % interest we have to add a “0” to the RI figures from DCP Midstream
COG PETROLEUM CORP.
ALFALFA COUNTY, OK
SEC. 30-25N-1 1W
OWNER No. OWNER PERCENT. INTEREST & TYPE
103743 Xxxx Xxxxxxx 0.02480500% RI
103742 Xxxx Xxxxxxx 0.02480500% RI
Can you please settle this argument?? I will be happy to post the results on the forum as soon as we know which one of us is correct.
If that offer has a $500 check on the bottom, it is possibly very dangerous to you. Please read the fine print. The language is very disingenuous and it is quite possible that if you cash that $500 check, that is all you will ever see. Every offer from that group that comes to me is marked with a giant magic marker with a big X and a warning to my children not to deal with them. If you read the back, you would give up all your rights, agree to their arbitration, etc. etc. That $3MM is a teaser and just to get your attention. That group has been written up in several newspaper articles in OK and KS. Be very cautious. Back in 2015, they had an F rating from the BBB according one post on the forum.
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THANK YOU!! This forum has been a godsend to me and my brother
.024% is .00024 NRI. You carry decimal 2 places.
My Dad framed a copy of their letter and hung it on the wall with an note to never sell anything to someone who sends a check with fine print on the back. I knew a guy who used to write payment in full and the account number on checks. When people cashed it, he had a claim of a reduced payoff on his debt. Never trusted that guy.