Offer to purchase advise needed. Lease is up in June on a 3 year. No royalties paid out as of yet.
Offers to buy come out often, usually at lowball prices to see if someone will bite. You should be getting paid on the Hasta 1206 23-1MH. It was drilled in 2017 and came online in early 2018. You should have gotten a division order. Did you recently inherit and need to clean up title? 89 Energy sold the well to Camino in August of 2018. Might be some confusion in payments due to the sale. You need to contact both of those companies first and get yourself into pay status. The Justify 26-23-12-6 1WXH well expected to be completed in the Woodford.
There is room for more wells in this section, so slow down a bit and get your affairs in order to get into pay status on the first wells. The reason you are getting an offer is that Roan Resources has filed for an increased density application for five more Woodford wells and five more Mississippian wells. Are you getting all of the OCC documents on this section? Your lease is going to be good most likely for decades.
Thank you. I will contact them asap.
89 Energy completed this well and reported first production in February of 2018. It does take them some time to issue first payments but absolutely reach out to them and verify everything is good on their end for you to receive payment.
Roan does indeed have orders in this section with a Multi-Unit notice but nothing further filed as to a set spud date. Watch the price of crude, what the market is saying as this will absolutely play into account productivity for drilling this coming year. Best of luck!
Thank you. I will not be selling after seeing this.
Your attachment lists A & A Tank Truck “intent to drill” in 23-12-6. It also says “disposal well”. I’m new at all this. Can you explain what this means? are they drilling for oil/gas or just for a dump site?
Good afternoon. It is a dump well for liquids. Schlumberger has great Oilfield Glossary where you can pickup a lot of the language used in the industry. When I first started in Land, the VP of Land sent me a link to this site. It was an excellent reference when I had a question or came across something I didn’t quite understand. Their definition is spot on.
It’s a deep well, either a prior oil/gas well that is no longer producing or a fresh well drilled for this purpose, to depose of hazardous fluids. Frack water, salt water, etc.
Schlumberger Site: https://www.glossary.oilfield.slb.com . Hope this helps!
That helps a lot. Thanks.
Drilling permits were posted today for the Justify 26-23-12-6 wells. Can anybody tell me the difference in wells named with WXH or MXH extensions. THANKS
W is Woodford play, and M is Mississippian play. H is for horizontal well, and X probably stands for multiple section.
Thanks for the information…
Advise please, My lease is coming due in May. They have option of 2 year extension. This lease was signed 3 years ago with no production from the well. Now it is producing and growing. Am i committed to let them extend the 2 years? If not what would be a reasonable lease price and at what royalty rate?
If you have a well that was drilled under the lease in its primary term, then the well holds the lease under the terms of the lease. It has now moved into the secondary term which will last as long as the well produces or other wells are drilled in the same formation under the terms of the lease. The option to renew is no longer valid.
Once your lease starts receiving Royalty payments it is HELD by what is called Production. A new lease or extension is not an option until Production is suspended by TERMS Spelled out in your lease. This is why it is so important to not accept the lessees lease terms and ask via an Attachment : terms that are favorable to the lessor-you. Some leases allow the oil company to pump once a year – and that satisfies the language to HOLD the lease – you dont want that