There has been discussion regarding this well a number of times on this group and I am looking for information regarding details I saw on the Okla. Tax Commission website yesterday. I am currently in the process of marketing my minerals in section 7-18N-13W. The activity in section 8 with the Brown well has a bearing on the value of my minerals so I have been waiting on production reports for the well. I had been checking on the OCC site only to find out that oil productin is only reported on the Okla. Tax Commission site, not the OCC site which only reports gas production. The tax commission database indicates production history for 7/1/16 a gross volume of 5490. Can someone decipher for me what this figure means? Is it is production only for the month of July? Is 5490 an indication of a good oil producer or not? Another member on here told me the gas production was around 3000 but that is yet to be reported and I don't know if that is a good production of gas either. I was advised to wait for the production to be reported before I move forward with selling my minerals so can anyone educate me about this reporting process and what the figures indicate as to the value of the well?
A few items to consider.
If you sell now, you will miss out on the first check which will have about six months of production on it. If the well went to sales in July, then you might want to wait until February to think about selling. Whomever is offering is hoping that you don't know that and they will get that first juicy check. The Division Order usually comes about five months after first sales. They have to pay you by six months or they owe an interest penalty. You should get a check by January I would think.
The completion report has not been posted yet, so I can't compare the first sales month to the completion. We don't know if the first month was a full month or a partial month, so not a good month to make a decision on. On your check stub (when you get it), you will notice that oil sales are usually about a month behind and gas sales are two months behind. This is normal and I won't go into why unless you really want to know. At this moment, you cannot answer the "good" question yet.
When you think about selling minerals, you are not just selling one well, you are selling the potential of future wells. In my experience, most offers to buy are low to actual value. One, they just want to see if uninformed folks will sell. Many do. Second, most offers will gradually work up to the potential value of the one well drilled. Third, the real value of the acreage may be much higher, but the offer takes into account the risk of not drilling those extra wells.
Blaine County is one of the hottest counties in America right now. Before selling, you might want to read the investor presentations for Q1, Q2 and Q3 for Continental Resources, Newfield and Marathon as they are very active in the area. Get a feel for the potential of the area. Compare their maps to where you location is. I have posted a Blaine County S-T-R many times on the forum, so you can download it.
I am mostly in the "don't sell your minerals" camp, but there are times to sell if there are extenuating circumstances due to health, medical expenses, etc. So each family needs to make its own decision. You can also sell the royalties to a particular well and keep your mineral rights to the rest of the acreage. You might consider that as well.