Have mineral rights and have been receiving offers to sell.This is all new to our family and are overwhelmed, any information would be greatly appreciated. I believe there has been a well drilled to the north and finished on our land.Thank you in advance.
If this is new to you, then slow down and get fully informed. Any time you get multiple offers like that, they know something you don’t know and it is wise to find out what it is.
First of all, if you inherited, make sure that all the legal work is done and that you have your name and address plus the legal description filed in the county where the minerals are. Then the land men can find you.
You do have two horizontal wells that just finished and are about to go into pay status, so you may want to hang on and get paid on them before you make a decision about selling.
Read all you can on the forum about Grady County and what is going on. Read the investor presentations of the big players like Continental, Marathon, Roan Resources, etc. Read the Mineral Help tab above. Ask tons of questions. Take a while to get your feet under you. Those offers to buy indicate good potential for the area.
Loren, there have been some pretty impressive amounts paid in this area and the wells appear to be good producers so you should expect a decent payout no matter what you do. I agree with Martha, do your homework and ask lots of questions. One question, do you know what your lease terms are for your interest? That will help in know what kind of royalty and/or offers you should expect to see.
Thank you both for your knowledge and input.How does a person find info on when these wells were drilled and finished, along with production information is there potential for other wells? Again we are trying to gain knowledge to make informed decisions. Are either one of these wells the victory slide well? Again, Thank you for sharing your knowledge and input.
You can track the well information on the Oklahoma Corporation website. Test Use 1509N05W in the legal location box. Form 1000 is the permit. Form 1001A is the Spud. Forrm 1002A is the completion. There are quite a few Victory Slide wells, so you have to look at the section numbers embedded in the well names. VICTORY SLIDE 22-27-9-5 2MXH, VICTORY SLIDE 22-27-9-5 1XH.
You can find the first sales and early production on the Oklahoma Tax site. Gross Production Use the surface location in the legal boxes. They are on sales as of late November, but the production numbers can be months behind.
I was able to look up some of the info on the VS wells but was not able to find a completion date on either well. You spoke about 2 wells that just finished would that be the VS wells? I’m sure these are easy questions and I am trying to read as much info as possible. This site is very informative but getting your input M. Barnes and J. Guthrie is priceless Thank you for your time and knowledge in helping people who are not familiar with this process.
The completion forms may not be there yet, but I can tell that three VS wells are completed by the OK Tax site. Type in Victory in the lease name box and you will see them pop up. Two are in your section. VS 22-27-9-5 1XH was on sales 11/21/18.VS 22-27-9-5 2MXH the same day. Production numbers and completion numbers can run about six months behind.
Thank you for the information, we have been offered 11,000 per nma that seems low what is a fair price? we plan on keeping our minerals. Thanks again
Your offers would be contingent on your royalty. A section nearby to you with 1/4 royalty was offered $19,000. If you have a lower royalty, you get lower offers. Given that you have new wells coming on line and room for several more, I would consider the offer low.
We have 3/16 th royalty
We had an offer for our minerals close to your section for $26,000 per acre. We decided as a family not to sell. Estimated production currently is 180 barrels a day of oil and no idea how much gas. Dividends I was told normally go out after 6 months of production activity.
since the wells were started in 1509N05W and drilled thru 22-9-5 into 27-9-5 is there a percent that goes to the other two place?
Your dividend is calculated by the following formula.
net acres/spacing acres x royalty x % perforations in your section. Once the OCC gets the actual survey of the well, they will generate an Order with the official numbers. Then the Division Orders go out.
Thank you for your help with trying to understand all of this information M. Barnes do you think there will be more wells on this property?
It is possible. They do have room for more.
My family has acreage in 7-9n-5w on a 3/16th lease. We have been offered $8K-$9K per NMA from several parties. I am very new to this business and I am not sure how close 7 is to 15. Are those offers reasonable for our location?
Also, we haven’t received any royalty income from these areas in many many years. It looks like there a couple of producing wells in our section.
So many questions…
Here is a map of Grady county so you can locate yourself. Grady County Map.pdf (434.4 KB)
You are getting offer because Roan Resources has horizontal wells pending for that section. At least two at the moment. Whenever an increased density case is posted, a rash of offers go out to the respondents. I file them in my files, take note of the offers and ignore them. There is probably going to be more than two wells, so even more reason to ignore them.
The two wells that have production are the Marlow 1-7 which is an old gas well. Pretty low production in the Bromide holds 640 acres. WHB Cattle 1H-7 had first sales of 11/20/17. You should be getting royalties from it. Roan is the operator. Holds all 640 acres. The surface location was in 18. Looks like the two new wells are called WHB Cattle 7-9-5 2H and 3H. Surface location in 18. They both spud back in May of 2018. First sales were 9/5/18 for 2H and 8/18/18 for 3H. They should have you in pay status by February. So these offers to buy are trying to get your acreage before you get your royalties, probably not what you want…
Have you gotten any of the mailings from Roan? If not, you need to contact them ASAP.
Thank you so much for the information!!
Who would I contact at ROAN?