Thank you so much M Barnes, I really appreciate that.
Charles,
as a disclaimer I am in the business but was raised in the area too.
really depends on where your interest is as far as prices. Most leases will have an extension on them, especially with current oil prices. Plainview is actively leasing in the Blaine area and has assigned interests to Newfield in the past but that doesnt necessarily mean they would this time. Language in your lease form can protect you as M Barnes suggests. Depending on your bonus amount an attorney from the area might be a good investment.
Lance: Yes, they are available online. But that is 12 miles away from your acreage in 18N and wonât be relevant. If it was a typo, then it is relevant.
Charles,
Friend me and we can take this offline. I am wondering why you arenât getting royalties from the other well. And why Plainview is trying to lease. If you were force pooled, that might make a difference, but a lease usually holds more zones. Letâs chat.
Do you have access to any production records on the 2 wells in 4-16-13 M Barnes ? We recently leased in 3-18N-13W.
Yes, I had it calculated at 12 miles away as well, I was just interested in tracking production coming North. The only production relatively close to 3-18-13 that I have seen was in 2-19-13. Thanks.
in continuation to JW Anderson response. Does the operator of the Dingo well has to give up its working lease rights and is that technically voiding an old lease , and is that occurs automatically when a forced pool is approved.E.I it will become a clean lease for the mineral rights owner.
also is the offers bonus/royalty under the forced pool in Oklahoma have to be the highest offered to leasing parties obtained by regular leasing
Charles,
There are already two horizontal wells in Section 4-16N-13W. They were spaced at 640 for the Miss, Woodford and Hunton. Are you already receiving royalties from those wells? Did you lease or were you force pooled? Is the new lease for a new horizon? If you arenât getting paid and these mineral rights have been in the family a while, you have some detective work to do. I see your name on the pooling order for a relative.
Some key data is missing here.
I have 33 acres in Sec 26 -15N -12W, and 16 acres in sec 27- 15N- 12W, both leases have been drilled on. In sec. 27 The Holstein 1-27H, and the newly drilled Cimarex- Vessels 1-H-3526X. Like most of you Iâve been inundated with offers to buy lately $7500 top offer so far. I was needing advice on the potential production in these areas, and whether the Meramac was in play in these two sections, and maybe some thoughts on the long term potential in these areas. Thank You
Greg:
You are definitely in play for the Meramec. I would sit tight if it were mine. Both Cimarex and Continental have multiunit wells planned immediately south of you.
Regarding selling minerals I think it has to do more with what your needs are. $7500 is a heckuva price, I buy so I think I know. If you want/need the money then sell. The chance of making that much money on a per acre basis in my lifetime with todays prices is slim. If you choose to sell I would be very careful about the contract and who you do business with.
Greg, Personally, I think $7500 is low. This area of Blaine is quite good. Mainly gas, but some oil as well. The general flow is that a company drills the first well to hold the property by production (HBP). Then if it is good, then they may come back and drill from five to eleven more wells, depending upon how many reservoirs there are. These wells have highest production over the first four years, but can hang in there for 25-35 years!
So this is not a one well decision; it is a multi-well and generational decision. This is yet another cycle in the oil business and usually things turn around in a few years. This is a long term business. I expect prices to rise modestly in the next couple of years. They can wait to drill those other wells until prices are better. Todayâs prices are not the key. The whole field life performance is the key. Our family has been in the oil business for almost 100 years, so we have seen lots of cycles!
If you want to friend me, I have a spreadsheet that I have developed to answer this question and I think you will find it helpful in making your decision. If you really need to sell, then consider asking for more, getting good tax and accounting advice, good legal advice and maybe only sell part. NARO just came out with some advice regarding the matter and is there to help. Check out their website.
We own property in 8-15N-10W in Blaine County and know there is a lot of activity now and projected for the future. We have been contacted by a company that wants to purchase a 75â permanent easement and right-of-way to lay pipelines and necessary incident facilities to transport oil, gas, etc. It would be across the NW/4 - we own 160 acres.
Would this impact the value of our property for a potential well or other activity? Does anyone know what the going rate per rod is for a pipeline like this?
Thank you so much.
Thank you all for your input. Your knowledge and expertise is highly valued and has been a huge help to me. Itâll be interesting to see how this Vessels well turns out. Thank you for posting the articles from Cimarex and Devon. Hopefully the low oil prices wonât drag the drilling of the Meramac out forever.
Will the ROW be exclusive or non-exclusive?
Susie:
Weâre in section 20 a couple of miles south.
This is the ONEOK pipeline (gas gathering) for the some of the wells farther north in Blaine County. $175/rod is the going rate. Youâd get about $28,000 to cross 160 acres. Be sure to restrict this ROW to ONE pipeline.
It will not impact the value of your property for potential wells. However, it could impact the value in other ways - for example, if the location they are crossing is one on which you would consider building a home or homes, no one would want a big gas pipeline in the immediate vicinity.
However, $28,000 should help alleviate a lot of your concern.
Susie,
The pipeline is located in Sec. 34 and running North into Sec. 27-15N-10WIM. Negotiate a larger amount for larger diameter pipelines. Also, the BIA (Bureau of Indian Affairs) limits pipeline easements to 20 years. At the end of that term a new easement must be negotiated or paid again to maintain the easement. Proof: pipeline running S to N in the SE/4 of 29-15N-10WIM. These records may be located in the Blaine Co. Courthouse or most likely in the Anadarko Co. Indian Records.
Greg,
Iâm located all along the bottom tier of 15N-10WIM in Blaine Co. Iâve received offers for $8000/ac to buy. This money looks big, but is a drop in the bucket compared to what you and your descendants will be paid over time. I personally to not believe in selling minerals when I can lease them forever. If the oil prices remain low, position yourself to release when your contract runs out. If youâre held by production, sit back and let the checks flow in. Sooner or later, the oil companies will re-drill and your checks will get bigger.
personal attacks, wow.
I will stand by my comment that if you need the money that $7500/ac is a good offer. forgive me if my calculations are incorrect but 33 NMA in a 640 unit producing 500bbl/day would roughly generate $7250 per month and therefore take over 34 months to re-coop the $7500/NMA offer at $50/bbl oil. 1st sales for the Holstein well was July 2011. Latest sale that i see was in Nov. of '14. and was 182 bbl. Previous sale before that was Nov '13. So it took 1 year to accumulate 182 bbl. Of course there is gas. And of course there is the potential for multiple wells. Check current oil and gas prices, check the market and the news about what the price of oil and gas is expected to do in the future. Again, if you need the money now, this is a good price, not necessarily a good value to some. There may be better investment opportunities or the possibility of selling a portion of your minerals to reduce your debt elsewhere.
I am in this business and am very proud of my career. I have leased and purchased thousands of acres across multiple states and would dare you to find someone that has dealt with me to say a bad word. I have created several personal lifetime friends by negotiating leases and minerals and ROW and they continue to look to me for advice AND I continue to give what I think is the best advice whether I profit from it or not.
PS
You deserve the âPersonal Attackâ for all the information you left out.