That’s what I don’t know either, Terry. Don’t know if they have 6 months to get started or have to wait 6 months and apply again. Hoping for someone with more knowledge than me can answer.
Sorry, I meant February 28.
Just looked at the Tulsa docket for January 28. On Docket 201700781 & 201700782 pertaining to a location exception on 26 & 35 of 17-12, on one page I found it marked I.O. Rec. 8-29-2017. On another page of the docket I found it marked with an ®. Could someone explain this to me please?
Paul,
"Rec" with a date listed = Interim Order Recommended with a Reopen Date.
I believe that means they have approved the application for the well, not sure what is meant by “Interim Order with Reopen Date”. Maybe they have 6 months to drill without having to re-apply?
What it often means with that six month time frame is that they drill the well and then the operator has to come back after the well is drilled and report to the commission what the exact split of the perforations is per section for the multi-section well. The split is required so that the royalties can be apportioned appropriately to the owners. The pooling order would give the time frame for drilling the well. They either have 180 days or 365 days to commence drilling, then six months after the completion to get back to the OCC. The operator has to start paying six months after first sales or they owe 12% interest for clear title holders.
Is there a way to search for Docket results or OAP orders on a particular section without scrolling the Docket results on OCC site. Thanks in advance!
Follow this link, then click Case Processing Web Application (you may have to configure your computer to run the process.
The Case Processing app will display a screen where you may search for all the info associated with a CD number. If you do not have the CD number you may search by Sec-TWP-RNG.
Has anyone here had dealings with Sooner Minerals LLC? We received a letter from them asking if we were interested in selling our mineral rights.
The non-profit where I work was given 20 acres mineral rights 3/16 in Section 17 15N-12W and we are trying to find out its value, both as what it should lease for and what it should sell for. Also whether it is a good time to sell or not, and if there are wells producing there or planned there…and if there are, how much is the production. If anyone has answers, it would be deeply appreciated. Thanks. We do have someone wanting to buy all or part of our interest, but we do not know the real value.
Our mom, who was born and raised in Hydro, passed away in 2013 and left us the mineral rights to the farm. Our accountant asked us if we can find out what the value of these mineral rights were in 2013 so that we can determine the cost basis so we can determine the capital gains for tax purposes. Does anyone here know how to estimate the value of the mineral rights at that time?
The Oklahoma Tax Commission used to keep records like that, but may not anymore. You could call them.
Mike,
I am not an accountant and not giving accounting advice. The answer may depend a bit on whether this is a taxable probate over $5mm or whatever the amount was back then or not. Accountant knows that answer. But a general answer used to be to take the annual payment of royalties for the 12 months preceding her death and multiply four times the oil royalties and seven times the gas royalties. If you need an actual engineering report, that is a different issue, so friend me and I have an engineer in OKC that does it for us. My mom passed away in 2012, but we had to have our well engineered. Also, part of the answer is whether or not the minerals were held in an LLC. That can lower the amount for estate purposes. If personal, then the answer is different.
production website
I know this has been discussed before but can’t find the post.
Is there you can look at a wells production history? Pretty sure I have done this before but have forgotten how. Thanks in advance.
Newfield has decided to sell its interest in the Phillips 1-17H operated by Council Oaks in 17-17N-13W. Apparently, Newfield believes the rate of return will be too low.
Mr Anderson, you could be right. Some of these wells may not have good returns at current prices.
Regarding Newfield’s sale in 17-17N-13W of the Phillips well. Per their filing on EnergyNet, they are selling a 99% interest in the borehole of the Phillips well. That way, they get all the drilling information they want, and are free to do what they want in the future. Their notes on this well indicate that they think this is a good “test” well. However, their decision to sell this 10 weeks after the well was spudded may not be a positive development.
With regard to the other well they are selling in Canadian County, they were not nearly so positive about that wells prospects. Their engineering report (which I don’t think they really intended to publish, but they did) says that they are expecting only an 8% ROR, and they expressed concern about a newbie operator. Their desire again was to divest, but to retain well information in so doing.
Phyllis, there is quite a bit of activity all around you in 18-16N-13W/ Highmark has a pooling order pending and a horizontal well planned.
Extensive drilling all around you. Any sales offers you get right now are liable to be quite low to actual value. They are hoping you don’t know about the drilling. You are in one of the hottest areas of the country. I would direct you to the most recent investor presentation by Continental Resources. You are just outside the western edge of the de-risked portion of the over pressured oil window near where the arrow of the blue box intersects the dashed line. See slide 14. I have acreage in Blaine and not selling any of it. The future upside in certain parts of Blaine is quite large and most sales offers are quite low.
Just in:
Oklahoma House passes extended lateral drilling bill in close vote
The Oklahoma House narrowly passed a bill Wednesday that would allow longer drilling in nonshale formations, with the vote held open for more than 30 minutes after an apparent deadlock.
Three members switched their votes on Senate Bill 867 in the last few minutes, giving the bill 51 votes and securing its passage. The final vote was 51-46, with two members claiming constitutional privilege. The bill now goes to Gov. Mary Fallin.
In its first year, SB 867 is expected to generate approximately $490 million in new royalty payments, raise more than $229 million in new state and local revenues and create nearly 6,000 new jobs in the oil and gas sector. Additionally, the measure is expected to spur nearly $6 billion in investment from oil and natural gas producers.
If the Governor signs it, I think it will be a very good thing for the OK economy, mineral owners and efficient drainage for a very long time. Some issue to work out with vertical wells in the same zones. I can see that side as well.