We have been approached to lease Section 17 T8N. We own 100% of gas & oil. What is a good offer and why do they want the whole section? We have been offered 1/5. Is that a good free?
1/5 and how much per acre?
We were not offered anything but the 1/5. They have offered $200 for our miner ls in Sec 18 but we do not own nearly as much acreage in 18. As you can see, we have no idea what we’re doing.
Which range?
Section 17, 8N, R3
M Barnes said:
Which range?
Let me do a little research. It is farther north than I have looked at before. In general, many of the well spacings are for 640 acres, so that is why they want the whole thing. Also, if the wells spacings are less, they still want the whole thing so they don't have to deal with you more than once. If this is your first offer, it is a lowball. They want to see if you will bite, so don't. Do you have the surface rights as well? If so, then really slow down, because you need to be informed with what happens on the surface as well. Also, don't take their lease because it only benefits them. You want to make a good choice because it can have very long term consequences for your family and your heirs.
I would suggest that while I am doing some looking, read this forum, but also read over the last few months of Grady, Stephens and Garvin, so you see what it going on in the area. Get up to speed. Find the section on Tips for Mineral Owners at the top of the Forum.
Thank you. No, we no longer have the surface anywhere. We do have mineral rights in many other sections in this area. I’ve been reading much of what has been posted in this forum for McClain County but this question is the first I’ve posted and still not really certain on how to reply. Again, thank you for your help. I very much appreciate it.
http://www.newfield.com/assets/pdf/2013%20Barclays%20CEO%20Energy%20Conference.pdf
http://investors.clr.com/phoenix.zhtml?c=197380&p=irol-presentations go to the Sept 5 one.
Both of these investor presentations are hot off the press. Your leasehold is on the NE edge of the SCOOP.
Energy Lease Accounts has been leasing in here as well as TS Dudley. ELA is usually leasing for Newfield who is a big player in the Woodford in the SCOOP. (South Central Oklahoma Oil Province)
They did lots of leasing in 2011 and 12 in S. 17 and 18. You aren't the only owners. Did you get leased the first time? Let me see if any force pooling is happening in the area.
We were told by Todco that we own 100% of sec 17 and 67 acres in sec 18. We don’t know for sure. I remember our mom telling us we had 100% in one of the sections but can’t remember which. I don’t think we were leased in 2011 or 12. we don’t know to find where our mineral rights are. They are scattered from Interstate 35 to May Avenue. South on May to Sec 22 and so on.
M Barnes said:
http://www.newfield.com/assets/pdf/2013%20Barclays%20CEO%20Energy%2…
http://investors.clr.com/phoenix.zhtml?c=197380&p=irol-presenta… go to the Sept 5 one.
Both of these investor presentations are hot off the press. Your leasehold is on the NE edge of the SCOOP.
Energy Lease Accounts has been leasing in here as well as TS Dudley. ELA is usually leasing for Newfield who is a big player in the Woodford in the SCOOP. (South Central Oklahoma Oil Province)
They did lots of leasing in 2011 and 12 in S. 17 and 18. You aren’t the only owners. Did you get leased the first time? Let me see if any force pooling is happening in the area.
I was looking at the force poolings near you. Section 8 was done a couple of years ago. They had a choice of $0 and 25% interest or 100 and 1/8 I think. Section 9 is bing pooled right now. Hearing coming up,
Section 36 just pooled in July. Offers were for $155 and 1/8 royalty or $150 for 3/16. The Woodford may be missing right here. It is close to the edge. Looks like 80 acre spacing for the Deese and other zones.
If I were you, I would wait a bit. You have a couple of choices. a) Don't answer (force pooling notice will eventually come) b) ask for more-maybe some other folks on the forum have had better offers, ask around at the coffee shop, etc. c) wait for force pooling. If you lease, make sure you get a depth clause and gross proceeds. If you need the money, pick a good bonus and 3/16 or 20% option. If you don't need the cash, then pick the $0 and 25% option.
If your mother is still living, get in touch with her because she may have some important papers like the original mineral deed! If she is deceased, then you need to find the probate documents and get the exact descriptions off of the non-producing minerals portion.
If you want to discuss further, send me a friend request above and we can take this offline. I am in the middle of my mom's probate, so I can walk you through some of the questions you need to get answered.
Thanks so much. They are anxious to have us sign. Telling us they are ready to drill. We are absolutely without knowledge re: leasing.
Friend me.
Ok. I don’t know how to “Friend” so it may take me a few minutes to figure it out. You are so kind to help me like this.
Connie
M Barnes said:
Friend me.
our Mom has been gone for many years. I think the will was probated in Oklahoma City. The Trustee was a bank in Norman but the Trust was dissolved 10 or 15 years ago. We think we have a pretty comprehensive list of the minerals but my sister and I can’t find any documents.
M Barnes said:
If your mother is still living, get in touch with her because she may have some important papers like the original mineral deed! If she is deceased, then you need to find the probate documents and get the exact descriptions off of the non-producing minerals portion.
If you want to discuss further, send me a friend request above and we can take this offline. I am in the middle of my mom’s probate, so I can walk you through some of the questions you need to get answered.
17 8North-3?? West or East?
West would be McClain Co but I see several people (about 15) that have leased in that section previously.
Ms Barnes will give you good advice!
Hi, Rick. It is Section 17 Township 8N Range 3W. I have a lease from Todco that says they want us to lease 600 acres more or less. My brother and sister also own in 17 equally. We also own minerals in 15, 16, 22 and so on. It is possible they were lease d by our former Trustee. That trust was dissolved about 15 years ago. We don’t know anything about oil & gas and until now we just signed whatever was presented. Now we are trying to find out what we are signing and not make past mistakes, if there were any. I’m finding by looking at this forum that we have been making mistakes…probably big mistakes. Thank you so much for responding.
Rick Howell said:
17 8North-3?? West or East?
West would be McClain Co but I see several people (about 15) that have leased in that section previously.
Ms Barnes will give you good advice!
Connie,
I will do some checking on the old wells. What was the name of your mother and what was the name of the trust? If it is since 1991, then quite a bit is online at the county courthouse. Once I find it, I can show you how to search.
Mom was Johnnie Claudine Lamar, father was Carl W. Trust was Johnnie C Lamar handled by Security Nat’l Bank and Arvest Bank in Norman, Ok. The McClain County records are not online…at least as far as we can tell. The women in that office (in Purcell, Ok) are almost rude and will not help us at all…
Since there are only 640 acres in a section, all of these leases should fall within the 600 acres.
Carlene Lamar
Mary Olsen
Betty Sue Cover Revocable Trust
AmberLee Lorraine Lamar
Betty Nadeen Dyess
Susan L Gray
Samuel T Verser
Mildred Lamar
Roy Olier
Stuart M. Dudley
If the trustee signed the lease it would still appear as the trust.
Make sure you strike the warranty clause if you sign a lease for 600 NMA! ;)
Connie Hambrick said:
Hi, Rick. It is Section 17 Township 8N Range 3W. I have a lease from Todco that says they want us to lease 600 acres more or less. My brother and sister also own in 17 equally. We also own minerals in 15, 16, 22 and so on. It is possible they were lease d by our former Trustee. That trust was dissolved about 15 years ago. We don't know anything about oil & gas and until now we just signed whatever was presented. Now we are trying to find out what we are signing and not make past mistakes, if there were any. I'm finding by looking at this forum that we have been making mistakes....probably big mistakes. Thank you so much for responding.
West would be McClain Co but I see several people (about 15) that have leased in that section previously.
Ms Barnes will give you good advice!