Council Oak Resources, LLC in Tulsa

#1

Does anyone have any info or experience with Council Oak Resources Resources (COR Operating,LLC) out of Tulsa? We have a lease with Highmark Resources in Sec4-T17N-R12W in Blaine County, OK and COR is the operator (?). I am wondering if anyone has had issues with COR or Highmark? The COR Revenue Summary Statements are nearly illegible compared to other companies we have dealt with. I asked a friend in the oil business in Oklahoma to look at the statements and see if he could figure out their “hieroglyphics”, but he was at a loss to understand their report. It makes me curious. Anyone know about COR or Highmark?

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#2

Its my understanding that the fund that supported Council Oaks has pulled their funding from them and Staghorn will be taking over. Not sure what all that means.
The Haigler has been completed in 4-17N-12W.

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#3

Thanks Stewart! Interesting…If so, I have not heard anything from COR or Staghorn, even though “we” are the property owners. Amazing how arcane and convoluted the Oil Business is. I suspect that is by design…

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#5

Stewart, I would be interested to learn where your information came from. I just received a royalty check from Council Oak Resources and there was no mention of this change.Does anyone know if there is a law/rule that requires operators to notify mineral owners of changes in status?

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#6

Thanks for your input, Ann. Can you tell me who you heard this? I have only heard about it on this forum. Thanks for any info.

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#7

They do not have to inform you, but you will usually get a new Division order from the new company when all their paperwork is finished. You can watch the OCC well records site for Form 1073 change of operator.

http://imaging.occeweb.com/imaging/OGWellRecords.aspx

Council Oaks may keep many wells and only sell part of their acreage. Just depends upon their strategy.

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#8

Thanks Martha. I appreciate your knowledge, especially given that my brother and I are 2000 miles from the Oklahoma oil fields…

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#10

Martha, do you have any information on Blaine County S18-16n-13W? You posted last year that Spess Oil is the operator and is apparently holding up any new drilling based upon their interest in the old Spangler Well. You mentioned in that post that the OK Tax site showed the last production being in April of 2017.

We have never received any royalty $ on that well, which our mother left to us in 1997. I understand SunOco is purchasing whatever trickle of oil is still being pumped by Spess, but a friend back in Watonga said he saw no sign of pumping or storage equipment at the site. I don’t know how to break through the log jam and would appreciate any clues you might offer as to what we might do. We have been considering retaining an attorney in Watonga but I need more info on process before going that route.

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#11

Splangler 1 had production at least until May 2018 according to Drilling Info. I only see up until Nov. 2017 on the OK Tax site. Contact Spess. You can look them up on Bizapedia to get an address. There was sporadic gas production in the 70’s and 80’s. I see pickups of oil about once or twice a year since them. Last one says 178 BO for May 2018.

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#12

I’m not Martha, but I own a lot of minerals in this section, and I know a lot about the history here. I received a recent check (June) which showed sale of 181.23 bl in Sept 2017 and sale of 178.39 bl in May 2018. So it is making roughly two thirds of a barrel a day. At $50 oil, if they are spending much on electricity and lease maintenance, it would be hard to claim they are making a profit on this lease one would think. Before you spend money on a lawyer, just be advised there have been other legal attempts, and without success thusfar. There was a rash of leasing back in 2016 in this section by HighMark, Paloma, and Tributary. When they called me, trying to lease, they told me there was no equipment on the lease, and they felt sure it was abandoned. However, they were either mistaken, or they caught Spess in the process of switching out equipment. Keep in mind this was originally a gas well that was reclassified as an oil well. Now, it produces only oil and holds an entire section. There may be something that could be done with that information. You may be aware that Continental completed a Woodford well immediately to the South in sections 19 & 30 in 2017.

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#13

Council Oaks recently obtained a Mortgage on this section and other lands, so doubt they are “done”. But with prices having dropped 30%, who knows.

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