JW Anderson thank you for your insight. J Temm
Does anyone have any new information on drilling activity near Section 7-17N-13W?
http://seekingalpha.com/article/3229076-cimarex-energy-sees-long-teā¦
Good article about Cimarex and what they see in Blaine. Also look up their recent investor presentations.
If you are leased and producing, you are held by the terms of the original lease. However, if you had a depth clause on the original lease that has shallow production, you might get another deeper lease. If you donāt have a depth clause, then you may still have additional drilling if the area is prospective at the same reservoir or deeper ones.
I doubt you have depth clauses if they are that old. Most did not.
Posted by M Barnes on May 25th:
What they are asking for is to buy all of the mineral rights for that price per acre only if she is already leased for 1/5 th royalty and not 3/16th. Royalty is the amount of money you are paid when the oil and gas are sold. If you have 10 acres and the spacing is 640 ac, and you have a 1/5th (20%) royalty then you would get a payment of 0.00555556 for each dollar of product sold.(10/360 x 20%).
I just found out my mother owns a whopping 0.4915 acre (not quite a half acre). Using the calculations above and substituting the ā10ā with .4915, it looks like my mother would a about $1.00 if she sold.
Do I misunderstand the calculation? Thanks!
Must not have had enough coffee, then I went on vacation. I messed up the equation below. If you have 640 ac spacing. then the royalty payment is (for 10 acres)
10/640 x .20=.003125, so yours would be .4915/640 x .20=.00015359. If the spacing is smaller, then the decimal amount is different. For example: .4915/40 x .20=.0024575. This is what you get paid for royalties on every dollar sold of product. The purchase price is whatever they offered per acre. The thing you need to consider is how much those royalties will make you in the long run versus what they offer to pay you in a one time payment.
Sorry about the confusion. I had clumsy fingers that day.
As a 35 year exploration and production geologist, I am not worried about fracāing since I understand what is involved and welcome it on all of my lands, but I can understand her point of view given the mostly negative media coverage. Do what is best for your family! Peace of mind is worth a lot on its own.
M Barnes, thank you so much for the information. The royalty checks for the last several years have been less than ten dollars annually. Mother is 90 and does not see the need to keep ~1/2 acre. Sheās afraid of fracking and what it could do to the property owners in the area.
Thanks again. Youāve been a big help, clumsy fingers and all! Hope you enjoyed your vacation! :>)
DOES ANYONE HAVE INFORMATION ON DRILLING ACTIVITY ON OR NEAR
SECTION 17,16N,12W, BLAINE CO
I HAVE RECEIVED SEVERAL CALLS LETTERS TO BUY MY MINERAL RIGHTS
L. Shriver: I also own minerals in 7-18-13 which are producing. Would like to visit about your lease and mineral offers and maybe compare notes and information. I am held (questionably) under an old well from the 1980ās and have 220 net mineral acres. Thx
This will help you locate your minerals with respect to cities and roads.
Personally, I would not jump on any offers to buy your minerals at this time. Quite a bit of horizontal drilling is creeping into Blaine county- hence the offers to buy. Those offers are hoping to catch unsuspecting mineral owners into accepting lowball amounts. So leasing would be the way to go for a while. File all the āpurchaseā offers in your mineral files, or throw them in the round file. Also, be very careful about the wording on any leasing offers. There are some unscrupulous companies out there that use the word āleaseā when they are actually trying to buy. Do not take any offer that has a ācheckā attached to it. Read everything carefully and come back here for help.
L. Shriver where is 7-18-13 located? Have you had any offers if so how much per acre?
http://seekingalpha.com/article/3272555-chesapeake-energy-improvingā¦
No endorsement of any company, but thought the maps are useful for several counties.
I was wondering if anyone might know how I could find out what is going on with 153808-Arlon in Blaine Sec 36-16N-11W. I donāt know if Chesapeake is trying to keep it going in order to hold the lease which goes back to the early 70ās when Anson first drilled the Richardson #1.
Love this forum! I appreciate all the help received in the past.
Donald, I would wait if I were you. There is a multi-unit well in 21& 16 and another in 22&15, just west of you. Continental is in your section with active leasing going on now. You can get at least 1/5th. This area is heating up with multiple possible zones. Early offers to buy are almost always low to actual value. Application for spacing means they are planning to drill a well. You also have a Location Exception , Horizontal and Pooling hearing scheduled for early July. I would wait and see what happens with the well before sellingā¦
I own the mineral interests to 160 acres in Sec. 14 T16 R10 which is about 2 miles west of the Blaine Co/Kingfisher Co. line and one mile north of Hiway 33. I have been offered $9500/acre to purchase my rights but I would like some info on any newly completed wells in the vicinity. The property is presently leased to Continental and they have just applied for 640 spacing. Where do I go for the requested info? Thanks
Angela, I donāt have any direct info from Chesapeake, but I can tell from the production curve that the Arlon well was chugging right along until about Feb this year. It took a dive, the came back on again in March. The most recent months are not posted yet. But if it comes back near to where it was, it was no where near dying unless it has a mechanical failure. There is a nice long multi-unit well just to the west in 35, so I would not be surprised if they are trying to hang onto the acreage.
drilling%20permit%20for%20home%20place%20horizontal.pdf
I have mineral acres in the land named in the horizontal hole 1 (Sec 29 Twp 17N Rge 10W County BLAINE). I have been getting lots of phone calls and offers to buy my mineral acres. I have heard that the well is already drilled and a pipe line has been laid. Any info about what is going on? Should I be listening to offers in the $8000 per mineral acre range?
Vicki, same answer. Hold off. Blaine Co is really heating up. Catalina 29-4H was spud on 2/20/15, so should be about finished. You wonāt hear about the completion for a few months. They have to pay by six months after first sales. Any offer to buy is probably lowball. See what the well does first before thinking about selling. Remember that multiple wells can be drilled in the section, so this is not about one well, but the total value of every reservoir and multiple wells.