Our lease with Cimarex was signed 20th of November, 2009 and runs from June 1, 2010 for three years. It’s called a “paid up” Oil and Gas Lease while I see others with a “Top Lease Option”. Is there a difference between these types of leases?
Should I assume well in sec. 3 testing at 115 bod & 884 mcf , 20/64 choke ,1160 flow tubing press, is good? Bad?
Still new to the meanings of the lingo here. Bear with me, I’ll catch on.
Ron, Foot in mouth? You only pointed out the obvious!
Jo Cimarex has a well in sec. 3 tested at 115 bod & 884 mcf , 20/64 choke ,1160 flow tubing press. I’ll see what else I can find. When does your lease run out ?
Ron, I guess I had a little “foot in mouth” disease when referring to the sender of our offer letter! LOL! Live and learn!
** Top lease : An oil and gas lease which becomes effective only after the expiration (or termination) of an existing lease upon the subject land tract**
Jo, I’m sorry, I thought Ron said that. Well I think we are all on the same page now. Good Luck!
Greetings all! Willing to take a few questions from someone new to the site? Hope so. My sister and I just took over our mother's interests and would appreciate some guidance.
We own mineral rights in Grady County. SW/4, Section 5, 10N, Range 8W minus what appears to be an acre, maybe a building site. Last week a letter arrived from Justin Stamps with Cana Woodford Resources, LLC in Tuttle offering $2,500 per net mineral acre to buy our interest, which is in the third year of a 3 year lease with Cimarex. <br/> After researching our interest and reading posts in this group and the Grady County group I am much less impressed with the offer from than I was initially and not inclined to sell. If the map at the top of this group is accurate, it appears our interests lie either on the edge of the oil production or in the condensate area. However, the "Wet/Dry" map shows us solidly in the "Wet" area. So, I am a bit confused about how potentially productive our interests might be.
Here are my questions:
Does anyone have experience to share in that corner of Grady County? Any active wells or drilling or permitting underway?
Anyone have experience with Cana Woodford Resources, LLC? Am I correct the company is less than a year old? Is that a reason not to do business with them? Do they have a connection to Cimarex?
If we were to sell, what might be a fair per mineral acre amount? (Grady County, SW/4, Section 5, Township 10N, Range 8W.)
4. Are we wise not to sell? If so, what would have to change to make the time “ripe” for sale?
Any insights/guidance anyone can provide will be deeply appreciated.
Jo Go to Grady Co. group and look who started the group. These wells cost around $ 15,000 an acre to drill,some have a pay back of one year or less. Now say you had a well that had a five year payback. Now say they drilled 4 or more wells and you had 1/4 of all that.
Okay, Ron! I’ll get right on that! Thanks!
bod -barrel of oil a day x75.00 divided by 640 = per acre.
mcf -thousand cubic feet x 3.00 or 4.00 divided by 640.
Now take your royalty interest off that and you will have per day per acre to you.
No, I was saying I was the one who put my foot in my mouth, figuratively, of course. I appreciated Ron raising my awareness of “the obvious” which I hadn’t yet discovered. Like I said before, I’ll learn.
I have had my foot there once or twice.
Jo first of all welcome to the forum. I see you have listed Topeka Ks. as home. My wife and i had the plesure of working in Topeka at the Villages Group Home for six years and really enjoyed the town and the people, Since there is activity in your area you will probably receive several offers varying in price to sell your minerals, my opinon is i would not sell. To keep up with the current activity in Grady County you will probably be good in watching that forum and do not worry about Solicitation it is not allowed on the forum. Do not be afaid of asking questions it is how we all learn and there are some very helpful people on the forum.
Thank you Ron!
Hey everyone, been awhile since I’ve been on here, I have a question Eagle rock has drilled and completed a well in section 34-14n-9w in Canadian county it has been online for about 45 days. They came back and staked 4 more wells and o was wondering if there is anything on the OCC website I’ve been watching for intent to drill but haven’t seen one yet. Thanks for any info.
David here you go.
I have been wondering how the oil companies come up with the dollar amounts for each product, like the price of oil. When do they calculate this, is it an average for the last 30 days?
Dan, The prices are set daily. Here is a pipeline price bulletin. Just click on the date to see the price paid for various crudes from different locations. Oklahoma Sweet and West Texas Intermediate are usually priced pretty close. The 2nd link is to Commodity Exchange energy prices which includes natural gas. The pipeline prices for crude are closer to what we will be paid on as royalty owners.
http://www.paalp.com/Customer-Center/Crude-Oil-Price-Bulletins-1363…
Just as a matter of general information I post this reference that came out in the Houston Chronicle today. Much as been made of in the drop of natural gas prices on these forums. I have made reference several times to the success around the U.S. in extracting the gas and oil from the shales. I made reference in one thread that when the U.S. expertice is applied to the gas and oil basins around the world the price of natural gas is likely to remain where we are for a very long time.
In today’s Houston Chronicle reference is made to Mexico where the northern part of the country holds 600 Trillion cubic feet of natural gas in the shales. That is a huge number and may not be exact but it is probably not that far off. Much of it is in the Eagleford Shale in Mexico which is rapidly being developed across South Texas. Wells there are making up to 5000 barrels a day of oil along with the gas.
Now Mexico does not have the equipment or training to make the application like in the U.S. But, they will get it sooner or later along with the rest of the world. The manufacturing of all this equipment that can do what is being done in the U.S. is going to be a long time boon for oil field equipment suppliers.
So the reason for this long range forcast is to remind the mineral owners not to count on rising natural gas prices to increase their monthly revenue. The price will stay around $3 per thousand for some time. What will have as large if not larger impact is the price of oil. There is no telling where that will go in the future because oil is political.
The U.S. uses about 25 Trillion cubic feet of gas a year. The gas in Mexico could totally suppy the U.S. for 24 years if it was totally developed.
Don, I read the article also, aside from the considerations you mentioned my first thought was… “Good maybe they will finally create some jobs over there”. But history tells me the politicans will manage to screw that up!