Thanks, R Story and M Barnes!
Continental Resources drilled it. 1999 Donât see a change of operator
So are the pooling rates just a comparable amount based on the area or are they set amounts?
Charles,
It is just easier to read the clauses if they are separate, but they can be in the same clause. However, you have three separate ones there. The first is a shut in clause, the second is a commencement of drilling clause and the third is a combined lease extension and savings clause to give them extra time to drill. You do NOT want that Turner clause. It will extend your lease to five years.
Vitruvian has drilled some very nice wells over the last few years. They know what they are doing.
Friend me to discuss those lease clauses and any others in the lease. You need to understand the consequences of them.
Marathon pooled 27-17N-10W in January 2016, so if you did not answer the pooling, you are stuck with the automatic designation at 1/8th for $3450/ac. The other offers were $3350 3/16th. $3250 1/5 or $0 and 1/4th. So those are the going rates. I do not see your name on the pooling, so did you already lease? Marathon has a multi-unit well planned for those two sections.
Newfield leased 5-17N-10W just adjacent to you in December 2015 for $3600 1/8th, $4500 3/16ths or $3000 for a 1/5th. That is the going rate, so get those terms or higher.
Friend me (icon to the left) if you need help on the lease terms. The first clauses offered are not in your favor.
M Barnes.
I donât have any mineral rights open but have a question. I noticed you mentioned 0 bonus with a 1/4 royalties. What would be the advantage/disadvantage of signing a lease like that? Thanks for your time.
I see two Atterberryâs on the horizontal hearing, but not the pooling, so they must be either leased recently or held by production on earlier leases.
The pooling rates are set by the judge based upon the sandman evidence of the highest offers in the eight surrounding sections within the past year. (A few caveats there, but generally that.)
The advantage of 1/4th royalty for a good well is a massively larger ultimate financial recovery to the mineral owner. The bonus is minuscule compared to the royalties over 30 years. If the well is terrible or dry, then the lower 3/16th is better. Never take 1/8th. I usually go for 1/5th or 1/4th if I can get it.
thanks for the clarification M Barnes,
The lease name for the Section 27-17N-10W would be under Atterberry. Was this name there? I am checking for the Atterberryâs
landman. Silly auto correctâŚ
Looking for information on activity on the Quintle well, 10-16N-10W, Anyone living in the area have any knowledge of activity?
Anyone have experience with or knowledge of BCF Resources? They have made successively higher offers to purchase in 7-16N -10w.
found this info on the completion report
"THIS WELL WAS CLASSIFIED AS A HORIZONTAL, NO BOTTOMHOLE LOCATION WAS LISTED ON THE OCC DOCUMENT. WELL WAS PLUGGED & ABANDONED, RIG WAS SKIDDED. WE HAVE USED THE SURFACE LOCATION AS THE LEGAL.â
A new permit to drill was issued 1/2/16 for Quintle 1R-10-3xh
Steved,
friend me and I can give you some detail. Prefer not to post on here.
A Johnson,
what I found indicates the well was plugged 12/31/15
Friend asked me to look at a division order. It mentions actual interest and ballooned interest. Could someone explain what ballooned interest is
Never heard the term with division orders. Usually payday loans and it is a bad thing!
I never sign a division order that is not on the most recent NADOA form. The usual interest in OK is 6% is they donât pay you within the statutory six months and you have a title issue. 12% if no title issue.
Would definitely clarify an exact definition before signing anything.
PS new Quintle reported by CLR in their quarterly report as:
Quintle 1Râ10â3XH: IP 2,150 Boe per day (71% oil), 9,850â lateral (still cleaning up) donât see the actual completion yet.
Gas well? Possibly relating to gas balancing?
Cecil, before you sell, you should read the latest quarterly reports coming out of the operators there. Depending upon where you are, there are from 2-many reservoirs and decades of drilling to come. In general, this is not the time to sell. However, each person must do what is right for their family. Friend me (icon on the left) if you want more info. I do not buy or sell, but I can give you some of the issues you need to consider before making a decision. Your minerals are probably worth a whole lot more than what someone will offer you.
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