" Lessor’s royalty shall not bear or be charged with, directly or indirectly, any cost or expenses incurred by Lessee for exploration, drilling, completing, equipping, storing, separation by mechanical means, or development of the leased premises; however Lessor shall pay it’s proportionate share of severance and similar taxes based on production and actual costs that are the result of an third party’s arm’s length transaction and incurred by Lessee to transport, compress, dehydrate, treat or otherwise render the production marketable or to get the production to market from the wellhead point of production. However, in no event shall Lessor receive a price that is less than or more than the price received by Lessee.
Larry, the part after the “however” that starts with “and actual costs… to the end” is putting those post production costs right back in. I don’t do it.
Dear Miss Caroline, section 26 has just been spaced by Highmark. The order is not final but has been recommended by the “administrative law judge” (hearing officer).
Thank you Martha, I guess we have been had, we had a verbal deal with no deductions and this reads like it is for appropriate taxes only. We will fight as necessary, I appreciate you.
2 members of my family own inherited mineral acreage in Blaine County 27-18N-12WIM and 26-18N-12WIM, portions of 120 acres in 26 and 40 in 27. We’ve been approached w multiple offers to lease and one to sell. The original offer came in at $2000 bonus with 1/4 percent interest. Given the activity there and the recent record production levels Stack oil well by Continental, we thought this offer good initially. However, in researching/due diligence, now seems to be a low offer, as others are getting 5-10k/net mineral acre to lease and upwards or $20-25 to buy. A TX OG attorney advised it’s quite likely that this will go up, I’d be interested to know the range and values that might be reasonable to expect particular given the potential acreage given that we’re awaiting title details. Any insights in the area would be appreciated. Our understanding is there is a pooling order that may be in process but we’re trying to gain additional insight to valuation before finalizing. Also, at this juncture, it would seem with this area being a potential hotbed, what would be the benefit of selling mineral rights given the significant levels of expected production based on research in the area and contiguous areas and solid recent history to back it up?
I have mineral rights in Blaine county section 8 township 15 north range 12 west containing 160 acres more or less and have been getting numerous offers. I was wanting to know what is the going rate to lease or buy these. Can someone give me any information on these? I do not think I want to sell
You are in one of the most prolific areas of the Stack play. You need to pay a lot closer attention to the royalty rates than the cash bonus, although you should not have any problem getting whatever you would like here. If I were you, I would ask for 3,500/acre @ 1/4 royalty. If they give you any grief then ask them how the Peterson well a few miles north performed. Same with the Peoples well just as close. If they claim those are isolated events just to the north, then bring up the Angus Trust well to the south, and ask them to stop calling if this section isn’t just as good. CLR just released the info on that well and claims that it had a peak IP rate of just over 4600 BOEPD.
You could possibly get offered up to $35,000 an acre to buy your minerals. That’s a hell of a lot of money. 5.6 Million to be exact. You will most likely be part of a ten well infill drilling program, based on what is around you and the success already shown on multi density units. (see Continental’s quarterly report online). If they drill 12 wells in one fell swoop, then your 5.6 million will be eclipsed in a few years. Anyway, be cautious as M Barnes is saying. Friend me if you need some more help.
Hi Brandi- I also own minerals in Sec. 8, but mine are HBP by an old Davis/Range well. I am a landman of 35+ years that buys minerals, oil and gas leases and participates in wells. If you would like more information on this area and your minerals specifically, give me a call at 405-205-1112 or drop me an e-mail: . I graduated from Watonga in 1974.
Daniel, I am going to assume you mean 30-16N-12W. Section 29 next to you has an additional horizontal well pending. The reserves for that section are listed at 32.65 BCF and 3.369 million bbls oil in the Mississippian. The first well will drain 2.92 BCF and 333,000 bbls oil, so they have only asked for one additional well, but there are enough reserves for ten additional wells. You section may have similar characteristics. I would not sell if I were you! Or if you are thinking about it, friend me and I can walk you through what you need to consider.
Devon has two additional wells in 23.
To get a feel for the area, look up the most recent Q2-4 investor presentations for Continental Resources, Cimarex, Newfield, Devon and Marathon. Especially note their maps of the multizone, multi well plans.
Patricia Jackson, They have the location built on 32-17-12 as of last weekend. As far as I know that is all they have got done. This is 2 miles west of my house and I will be able to see the rig when they get it set up.