Just checking to see if someone could help educate me as to what I am sitting on. Just realized this past month that my wife inherited mineral rights for sec10, township22N, range 5E, in Pawnee county. I received a page filed with OK Corp comm for horizontal spacing relief sought by New Gulf Resources Inc. for the 640 acres in this plat. Got any idea what I got?
Do I need to find a lawyer?
Thanks for your help,
Bill
Hi Bill
I'm only a few months into my learning this stuff as well but I do spend alot of that learning time on what's going on in Pawnee County, especially around Pawnee. I went to the OCC website and don't find any scurry of activity near your place in the past 1 1/2 years. Went to Google Earth and looked at it's kinda old satelite view of your neighborhood and don't see wells especially close to you. There's something about 8 miles east of you that looks like it's probably a nice sized location somehow associated with oil/gas production - but it looks a little different than a normal tank setup near wells that I've seen. About 6-10 miles west of you Cummins Oil is pretty active with one rig - moving it from section to section in the N/E quarter 22N 04E. Section 15 is in my family's interest, so I know they've finished a hole on 15 but didn't yet fracture it and moved to section 11 and should be finishing it within a week or so. Rumor is section 23 is next. Cummins Oil seems to be pretty interested in developing this area.
If you have received for spacing relief, then there's likely plans for your section in my novice opinion. Is your place leased? By who? - I ask because I've also been trying to keep up with Highmount's activity in the area.
Here's a link I found to something written last year about the Mississippian Lime formation that the horizontal play in our area is interested in. It gives a rough idea of what the formation's geological makeup is and a even rougher idea of the oil/gas it produces;
http://www.investorvillage.com/smbd.asp?mb=13940&mn=621&pt=msg&mid=10419342
Bill, what you probably received was notice of a hearing, filed with the Oklahoma Corporation Commission, to authorize drilling on Sec. 10, 22N, 5E. This is usually the last step before actual drilling can take place. I assume that you have leased the mineral rights or have been contacted by representatives of New Gulf Resources. However, if there are existing wells on the property this may be covered by a previous lease agreement. I own partial mineral rights in 20-20N-07E in Pawnee Co. which is also leased by New Gulf Resources. New Gulf Resources is presently drilling on my property and has completed one horizontal well and a disposal well. I was told that they pulled the rig of the site for about two weeks but would be returning to drill a second horizontal well. I plan to visit the site, next week, to take a look at the progress. I don't think that you need a lawyer unless you want to contest the action. In my case, New Gulf Resources started drilling on my property within a week or two after getting authorization. Things should start get interesting for you very shortly. I wonder if they might be planning to move the rig to your property as soon as they complete the second well on my property?
Bill, I assume your wife does not have the surface rights for any of section 10. As Curtis indicates, NGR has the right to drill by either current production or an existing lease of mineral rights.
What your wife got was a notice that they are asking the OCC to override normal mineral pooling and pro rate any royalty to all mineral holders in the entire 640 acres. I understand this is the normal proceedure for horizontal wells. I have a similar, producing horizontal well a few miles north of you.
Bill,
My company (okland oil company) and New Gulf are drilling this well in section 10. They are the operators because they acquired more mineral leases than us. Are you leased? i know there are a few people that are not leased. you might be one of them. i am not sure if you can be leased by us because of our agreement with New gulf but i would like for my land man to contact you if you are not leased. Joe Okerlund is his name. we sent out letters to eveyone last summer. if you are getting pooled i really have no clue what price you will be pooled for. Okland and New gulf have almost everything leased around you. so even though i am not going to operate this well. if you have concerns or questions i will try my best to get them answered for you. New gulf has a year to drill this well so i don't know how fast it will happen but it will most likely be this year. by the spring of 2013 to be more accurate.
hope you have a good day and if you want to contact me just call Okland 405-236-3046 ask for steven or joe if it is a mineral question.
Usually the spacing relief is a good sign. Means they think oil and/or gas is there and they intend to drill a horizontal well, which tends to produce better than a vertical one. I would call New Gulf and find out if the mineral interest is leased to them, or do they want to lease it from you. If it is not already leased to them, they might offer to lease it. Often the offer is 3/16 of the proceeds from the oil and some small signing bonus for each net mineral acre you own. Sometimes a little more, sometimes a little less. Probably don't need a lawyer unless you have a large acreage, or there is a question about ownership etc. I am new to this also, but that is what happened to me in Payne county and they did drill the well. Don't know how well it is producing yet, but it is certainly interesting.