I own 1/2 the minerals on a lease to an oil company in oklahoma. I am not the property owner any more. I have received multiple cash offers to buy out my intrests. I am not intrested in selling out because I am sure there is a lot more production that should be happening on my lease. There are 3 gas wells on the property now but only have minimum production. Have you ever heard of someone subleasing the mineral rights to another oil company? If so how long should a lease like that be? Thanks, Bill
Bill, If your minerals are currently under lease to any oil company, then you are precluded from leasing to another company. (If by chance there are depth restrictions in your current lease, you MAY POSSIBLY be able to lease other depths to another party.
Yes they are leased for production. Now instead of selling my mineral intrest can i leverage my lease to another oil company by leasling them for long term?
Kenny Wilson said:
Bill,
If your minerals are currently under lease to any oil company, then you are precluded from leasing to another company. (If by chance there are depth restrictions in your current lease, you MAY POSSIBLY be able to lease other depths to another party.
Bill,
You can not sublease your mineral rights as you do not own the rights to the current Oil, Gas & Mineral Lease. As a mineral owner, you granted a lease to the operator of the well (or their successors). They now have to right to keep the lease or ‘sublease’ it to other interested parties.
As Kenny Wilson mentioned, you may have the right to grant a lease on other depths depending on the language on your lease. But, that will not provide you any leverage as the current operator has full rights to the zones they are producing from.
I tried to understand your question correctly, if this answer is not what you are looking for, please rephrase your question in more detail. Keep in mind, your options are limited to the rights provided to you on your current lease.
Good Luck,
–Chase
Bill,
I agree with Chase and others, but something that you might want to consider is a cash out on the producing zones only. Not zones capable of producing, but zones actually producing. You could also make a sale for a limited term, with the minerals reverting back to you after a specified period of time.
If you are certain that there is a lot more gas on your property, is it wishful thinking on your part, or do you have geologic or engineering reports that defines the remaining recoverable hydrocarbons in place?
I have a cold.
Chase said:
Buddy makes a good (and interesting) point.
But finding an investor to acquire a zone specific, term mineral deed may take some work on your behalf.
“3 wells with minimum production”
Buddy, what is an old timer like you doing surfing around the blogs?
Now thats the answer I was looking for. Making a sale for a limited term. The problem I am having is that I have leased these minerals to Unit Petro in Oklahoma and we started out with one well and that wound up paying me about 700.00 per month on production. Now they have 3 wells and I am still receiving about 700.00 per month on production. They had a really good year last year but this year is bad. I wish i had known they were primarly a gas company when i leased it in 1998. I am receiving several offers to completely buy me out for about 400,000.00 but taxes would eat me up. But with them offering that much money for my intrest I know there is a lot of oil and gas there. I sure thank you guys for helping me. I will explore that possible answer. Happy Turkey Day
Buddy Cotten said:
Bill,
I agree with Chase and others, but something that you might want to consider is a cash out on the producing zones only. Not zones capable of producing, but zones actually producing. You could also make a sale for a limited term, with the minerals reverting back to you after a specified period of time.
If you are certain that there is a lot more gas on your property, is it wishful thinking on your part, or do you have geologic or engineering reports that defines the remaining recoverable hydrocarbons in place?
–Buddy
Hi Buddy, How do I draft a letter to the oil company I am leased with to find out about the drilling logs and information about how much gas and oil is on the propety? Thanks, Bill
Buddy Cotten said:
Bill,
I agree with Chase and others, but something that you might want to consider is a cash out on the producing zones only. Not zones capable of producing, but zones actually producing. You could also make a sale for a limited term, with the minerals reverting back to you after a specified period of time.
If you are certain that there is a lot more gas on your property, is it wishful thinking on your part, or do you have geologic or engineering reports that defines the remaining recoverable hydrocarbons in place?
–Buddy
Thanks Chase, I think Buddy had the answer I was searching for to Sell the intrest for a fixed period of time. Thanks, Bill
Happy Turkey Day next week Chase said:
Buddy makes a good (and interesting) point.
But finding an investor to acquire a zone specific, term mineral deed may take some work on your behalf.
“3 wells with minimum production”
Buddy, what is an old timer like you doing surfing around the blogs?