Received a Certified Letter today in a Black Rock Land envelope containing options regarding minerals in Section 24-3N-6W. Documents inside were from Warwick Investment Group. Best option given that I saw was “Lease/assign your interest for $300/acre reserving a 20% royalty or delivering an 80% NRI.” Personally, I would like to see a 25% royalty option. I guess I could choose to participate, but my wife might have me committed.
Which brings up a question. I see no recent oil & gas leases in the okcountyrecords.com website for that section (24-3N-6W). I wonder why?
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Probably should add… there are zero oil & gas leases in surrounding sections.
Ask about a 1/4th option. There are several leases filed in sections 2 & 3 to the north that have 1/4th leases. Warwick Jupiter has filed for five Audra multi unit horizontal wells with 13/24,
I asked about a 1/4th option. Should hear back on Monday.
Hey Donnie, were you able to get a response on the 25% option?
No, the guy never called me back. I did get a letter from JP Drilling… they are offering a 25% option. I have not seen their lease, but they did some leasing up by Chickasha and the leases they signed up there look pretty good to me. Also, just got a letter today from Plainview Oil Company wanting to lease minerals. Warwick got a lot of Emergency Orders approved and a rig may be on location. I need to drive down and see. I have one brother planning to participate and I may decide to do the same. 5 wells.
I received those today as well. Looks like Cactus 129 is moving in, if not already there. Maybe you could get in contact with mom and us all work together to get the best offers?
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From what I have seen for this area the $300-$400 bonus seems very low to me as well, although I am new to all this and know nothing about it. Is there a way I can look up previous and/or current lease agreements in order to compare my offerings and know what to attempt to negotiate?
You can look up leases on www.okcountyrecords.com for Oklahoma. Bonus amounts are only public in the poolings. The higher the royalty, the lower the bonus. That is normal.
Cactus Rig 129 is on location.
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Great pictures of both energy types co-existing!
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Looking at the Gas Volumetrics document related to CD 2025-2846 for Section 24-03N-06W. It shows “Estimated Ultimate Recoveries at the bottom of the document for the Audra 0306 12-13-24-1WHX well. Is that number (13,775 MMCF) just for Section 24-03N-06W? Or is that for the 3 sections? And do you multiply that number (13,775 MMCF) by 1,000 to get the MCF number?
Trying to decide if I should participate in the well.
CD2025-002846 Exhibit 3.pdf (416.7 KB)
I need to look up the other cases before I answer.
There are going to be five Audra wells.
The portion of Audra 1WHX in sec 24 has 13.755 BCF, sec 13 has 14.192 BCF, sec 12 has 13.755 BCF so an approximate total of 44.742 BCF. Compared to the Hale 1 & 2 two section long horizontals to the north, they had predicted EURs of about 31.8 BCF for #1 and 28.7 BCF for #2, so makes sense that another section adds another 13-15 BCF EUR. These are engineering estimates not promises.
Be aware that investing as a working interest owner is not for the novice. You will have no control over the expenses, need liability insurance (usually available through the operator’s plan), funds for a good accountant and attorney and JIB payments for decades, etc. etc. That could put a burden on your heirs. Get good professional advice before deciding to do so.
