I was just offered to lease my mineral rights in 16N 20W and want to know if anybody has recent offers or has taken a lease?
I should have been more specific. Dewey County OK Section 10 16N 20W. First offer was $750 3/16 three years. Any feedback would be appreciated.
Welcome to the forum. I moved your topic to Dewey County. There is at least one lease in 10-16N-20W taken in April 2025. It was for 1/4 royalty which is much better. The bonus is lower, but that is expected. It was by Core Resources. Probably for a horizontal well in the future. If you have not leased before, it is wise to get a good oil and gas attorney to review any draft lease as they are rarely in the mineral owner’s favor and need some very specific edits.
The 2025 lease in 10-16N-20W taken in April must be for the west side of the section as my family owns the east half. My family would rather have a larger bonus than 1/4 royalty, maybe, if we know how much the bonus was. Do you know and if so please advise. Thank you.
Bonus amounts are not public information. The closest you might come is a pooling order in an adjacent section in the past year.
Most mineral owners would prefer the higher royalty because a higher royalty for a producing wells for many years can far outweigh the one time bonus that you only get once and then you are stuck with the lower royalty for the life of the wells. Small amount of cash right now versus much better cash over many years. Not guaranteed of course.
Do you mind me asking what company made you the offer?
TKLand… J D Williams company made the offer. There is now an issue with a company, Great Horned Owl LLC claiming they bought production rights from Contango Resources in Dec, 2025. So, JD Williams has pulled out of the area after some of the section was leased. My families records show no royalty payments received in Section 10 16N-20W for over two and a half years, so we do not know how this company can claim they bought the rights to produce. Maybe M_Barnes can clearify matters please.
The Graybill 1-10 HT is spaced at 640 acres, so all of section 10 is held with the well in the Tonkawa zone. If you have a lease with no depth clause, then all zones are held. If you are held by a pooling, then the zones in the pooling are held. The well was completed Dec. 30, 2013. It is still producing. Wells are sold all the time. Last Form 1073 transfer of ownership I see is White Star to Contango back in 2019. Great Horned Owl bought a lot of wells in Dec. 2025. Their paperwork may not be public yet on the OCC.
If whomever was receiving the royalties moved and did not tell Contango they moved, then the royalties may be held with Contango due to a returned check. Either way, Contact Great Horned Owl and demand the back payments. Give them the mineral owner name, your owner number, address and how long it has been since getting paid. It may take about three months to get the sale transfer paperwork ironed out.
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Thank you M_Barnes. The big question is: how can a new lease be offered, signed, bonus paid if the wells (Henry 1 and Henry 2) have been active since 2013? My family has not received any royalty payments from Contango Resources since 2021, and we believed the wells have not produced since then.
Last production for Henry 1-10H and Henry 2-10H was March 2020. “Active” does not always mean producing, so the lease may be expired by its own terms. They just have not plugged them yet. Did your old lease have a depth clause or were you pooled?
There was no depth clause. Again, how can Great Horned Owl take over the wells when my family just signed a new lease in December 2025? Thank you.
Companies buy each other’s leases and wells all the time. Very common. Leases do not have to be signed with the operator. The operator has to abide by all the leases in the drilling spacing unit.
Okay, but why then would J D Williams as the landman be instructed by the oil company they represent be told to pull out of the area because of Great Horned Owl LLC? In Section 3 (same 16N-20W Dewey) my cousins were offered a lease, but when J D Williams Co. learned that Great Horned Owl bought the rights the landman withdrew the offer. My concern is the no new well will be drilled because of GHO LLC’s activity. Thank you again in advance for your insite.
Only the landman knows for sure based upon what his bosses told him/her to do.
Okay thank you again. At this juncture my family would like to retain an oil and gas attorney to write a letter to GHO LLC. Do you have a list of attorneys that you can provide us with or direct us to where to obtain a listing?
What is your purpose in writing GHO? Just wondering if it is worth the money. We cannot compel a company to drill a well.
The purpose for writing GHO is to get them to agree to terminate activity on our section. Our landman said the oil company he represents instructed him to pull out of the area because of GHO’s activity. If we can get GHO to leave, then maybe the oil company will reconsider moving back into the area.
Correction. Graybill is in 10-16N-19W. I was off by a township. Sorry.
According to the OTC, our Henry #2 API 3504323326 is now named Ommen, but Great Horned Owl still lists it as the Henry #2. And I had a family member go to the well site and it has a sign showing Ommen 1-15 HT. My understanding is that the Henry 2 was located in section 15 but horizontally drilled north into section 10 because it was convenient to put the pad south of the road.
The Henry wells go north into 10. The Ommen wells go south into 15 and 14. Ommen 1-15HT is API 3504323205. The surface location is very close to the Henry 2-10HT (3504323326), so the sign on the gate may be on the entry location to the old rig road going to the south.
Here is the OTC search page. It says Henry is “active”, but no production since March 2020.
