Had offer to buy mineral rights from Ace Energy. Has anybody had any dealings with them?
Are you aware that you are about to have quite a few horizontal wells in your section and they are trying to buy those royalties (probably below what they are worth…) right before you get into pay status. You might want to slow down and understand what you have before signing any deal. Did you get the mailings from the Oklahoma Corporation Commission on all the wells? Their surface location is in 24.
I get papers from OCC, and new to this and have a hard time with what they are saying. I did understand the surface was Sec24 but way I understood it was only one well being drilled into one formation in Sec25 & 36. So you are saying additional ones are going to be drilled. Went to the Sec24 this week but did not see anything new other than what wells that already there. I did notice a sign Roan was one of the companies I have also received how each section would share. Sec 25 would be around 51% and our Sec 36 would be 49%. Thanks for your quick response.
I find it useful to put the case numbers in order and then put follow up info by date order behind them and read them by case and in date order. Usually they have to space a formation. That may have been done years ago or recently to accommodate the drainage area. Then they file for permission to drill a horizontal well. Thne they file for a location exception to move from the middle of the section to an edge but leaving the 330 or 660’ easement. Then they may pool the section to get the remaining lessors covered. A permit will be issued and then drilling. Frequently, they will have a surface location at the edge of one section and then drill the main part of the well into one or two other sections. If there is a need for more wells, they will file an increased density hearing to give permission for additional wells. All this takes months and months.
Once those increased density papers are filed at the commission, there is a rash of sales offers where land companies want to buy those royalties from mineral owners. usually at lowball (to the mineral owner) prices. The buying companies fully intend to make a profit at whatever they offer. I have a long term view and no need to sell, so I do not answer the letter and just wait for the drilling.
Since we are getting offers has the well been completed or just the beginning? Will we receive notifications when the well is completed?
You can monitor the documents that go with the wells on the OCC well records site. They are filed by surface location. (which may not be your section) For your new wells, search in sec 24. Test. A completion report will be filed about five months after the well is drilled, but they will not contact you about the report.
The only contact you will have is the Division Order that will come about five months after first sales. When you have multiple wells being drilled, you may have a delay.
Your new wells start with Galaxy 2536 …The completion reports are filed on a few of them. Look for form 1002.
You can see if there are sales on the Gross Production site. Gross Production You can find them by typing Galaxy in the LEASENAME box. The active date is close to first sales. You should be getting division orders any day…
They are trying to buy your royalties before you get into pay status. You might want to contact EOG resources and make sure they have your correct name and address to send the division orders to!
If you check gross production - 1 well Galaxy 2536 1H is currently producing and 3 other wells (on the same pad) 2H, 3H, and 4H are all Active but because of delay in reporting do not have production numbers showing up yet. 1H shows numbers from December to April and is doing well. I think I would hold on awhile longer.
Thanks so much for everyone’s help. You have been a great help in making my decision to wait.
I’m new to all this and what I do know I have learned from posts on this website. I was wondering if maybe you could answer a question I have. Will every mineral rights owner be paid at the same time? What I mean is will they wait until all mineral owners interests are clear ( titles checked, probates done, whatever)? Is there anyway to know if anyone has started being paid? Thank you in advance for your response.
Those with clear title will paid regardless of the others. Most of the time persons are upon receipt of a division order & tax ID information.
Todd’s answer is correct. Clear title folks will get paid as soon as they get the main Division Order Title Opinion done. Those that have clouded title will get paid when they clear up their issues. Generally, checks show up about six months after first sales, but can take a bit longer when there are multiple wells.
I also am waiting for a Division Order for 2536. Looks like first sale is Jan 2019, but no Division Order from EOG yet. We need to be sure and ask for interest if they don’t include it.
Thank you for your quick reply.
Thank you for your confirmation.
According to Gross Production site, first sale was12/22/18 on 1H. However, 2H, 3H and 4H all became active on 5/17/19. One landman told my cousin they had until October before they have to pay interest. Don’t know if that’s true or not. Guess we’ll have to wait and see. We are actually waiting for probate to be complete this week. We’re getting at least 3 offers a week to sell.
Sorry, late to the party here, but we had dealings with Ace Energy. We got all the way through signing a lease with them, but never closed. We wanted to exchange the original lease for the bonus check, but gave up after repeated attempts to contact them with no response. We never heard from them again.