John, I don’t think you need to be in any hurry. Before a well can be drilled there is an application process the operator must go through with the OCC, pooling is usually the last item. Until you see evidence the process has started the leasing offers will stay low. I would just wait and see unless I had an immediate need for the bonus money. Don’t go for the 2 year option, a lot of money could be left on the table over the next 3 years.
John, off the top of my head I believe the activity in Canadian is more to the northwest like around 13N/9W. Devon and Cimarex have drilled a ton of wells in that area but the play is still evolving and the edges keep getting pushed. The Cana-Woodford is kind of a general name for the area, a lot of drilling is into the Woodford shale but there are other formations also being drilled.
I have just joined and need help with the land company wanting to lease. It is located on Section 7, Township 11N, Range 5W in Canadian County. they are asking $400. a acre plus a 2 year option and 3/16 Royalty.Is this area of interest? What should we ask? have 14.875 but as a group with family we have 59.5 net acres.
There has not been a lot of leasing in 11n-5w yet ,but there has been in 11n-6w and for a lot more money and more royalty . The terms of your lease are very important . I sent a pooling order on a section two miles from you . Look and see what they were ordered to pay there . There is a lot of good info about leases on the forum if you ask . Stephens and Grady have a bunch of good people.
Thank you for the info Ron. Are we in the Cana Woodford Shale? Should we wait for a pool?
Monitor this forum and the Canadian forum. Go on the OCC website and get familiar with what they have online. Read the paper, troll the web, watch what is going on in the sections around you. You can type in the name of the land company in the search button above and see if others have comments about them or know who they are really leasing for.
John…You can ask for more bonus but don’t give them any option~2 yr. or other wise. That would just allow them to put you on the back burner for drilling and who knows what your royalty will be worth in 3 yrs. if drilling keeps increasing like CR and Newfield are talking about. With that much royalty among your family you should have a little leverage. I would talk to Apache, Newfield and Continental to see if they might be interested before signing anything. The land people for them have been listed on the Stephens Co. and Grady Co. forums several times a week or so back, i think. Best Wishes
Thanks Michael, appreciate your advice. i was wondering if I should just wait. How do i know about when activity has started? Do you get contacted when activity starts?
Thank you Linda, Do you agree on waiting and see what happens first. Since we have not had any activity since the 80’s or 90’s. Is this in a good drilling area?
John…I don’t really know what to tell you. We’ve had some of our minerals since the first of the 1970’s and we came through two booms around Lindsay and no one wanted to drill on ours in 2n,4w south of Lindsay when drilling seemed to going on everywhere. Then all of a sudden about a year and a half ago it became a hot spot of the SCOOP and now they have just drilled 11 wells on Section 21 2n,4w (6 of them going north in our Section 16 and 5 more going south into Sec. 28 for the Casados wells! Then on the section 20 beside that they are drilling the Claudine through two sections. Those are only a drop in the bucket of the drilling going on in that area now. There are holes being punched in the ground everywhere around here and they say they have just begun. So you will have to decide for yourself but some seem to think you should sell some and lease some and that might be a good idea. I just don’t know. We’ve decided to hang on for the ride!
Thank you, Gary, it is good to hear this exciting news about the Cana.
Gary, I wonder if I am in this area. If so that helps me understand why we are having a offer.
Here’s an article about the new Meramec Shale discovery by Newfield in Blaine, Canadian, and Kingfisher counties. The Meramec is a Mississippian shale which sits right on top of the Woodford:
http://seekingalpha.com/article/1818562-meramec-shale-oil-play-unve…
That’s a new one on me, Glenn, but that doesn’t mean anything.
http://www.ndoil.org/image/cache/Bakken_Basics_-_Helms_and_Dokkens.pdf
Pretty good look at all the equipment that is being used to drill horizontal wells. It is the Bakken, but applies to the Woodford (with a little less snow!)
If first sales were reported on March 6th, what would be a reasonable period of time to receive division orders? Also, about how long before the completion reports show up on the OCC website? Thank You.
On the first well on an new project, it is usually 5-8 months before DOs have been sent out. If a subsequent well in the same spacing/formation, then it should be a couple of months quicker.
The operator is required to submit the completion report to the OCC within 30 days of completion. From there it is 2-6 weeks before the OCC approves and posts the report.