Thanks Martha!!! I will let you know how it goes!!
There is a lot of that going around these days-holding acreage with sub-par wells that should be plugged.
Back in the mid 90’s some guys where going around claiming they could use various slim hole side tracking techniques to reenter verticals with large amounts of water in the underlying formations and successfully fan out muti laterals and save the expense of new wells. It didn’t work well in many areas, but some still believe there are area where does. I never liked the idea because it usually resulted in water break through and lower production rates than new horizontals. It’s cheap not effective.
If you call the Garfield County Courthouse then they will give you the names and telephone numbers of some independent landmen working that courthouse. They will charge a day rate of $200 to $300 per day. Mark Cromwell 580-233-7992, Tim Simpson 580-541-2222 and Cody Watkins 580-554-2266 have been working recently.
G. Win, The producing well in the SW was the Bass #1-17 and it was producing from the Mississippian Chat since 1995, but it is no longer producing. However, the Bass 1-17 was a vertical well, so they could reenter and run a lateral into the Mississippian and have a producing horizontal well. They are trying to keep your lease active so they don’t have to get a new lease and pay you a bonus for a new horizontal Miss well. You need to write, do not call, Veenker Resources Inc., 1601 NW Expressway Suite 1700, OKC, OK 73118 stating the Bass 1-17 is no longer producing and you want the immediate release of your minerals. Send the below Release of Minerals Form filled out with your minerals legal description. Make copies of everything you send, keep a copy and mail original certified with return receipt to Veenker. http://www.landman.org/docs/forms/oklahoma686.pdf
M Barnes, You could be right about the age of the well. However, the company reworked that well in 1995 and it’s somewhat unknown and questionable. The Veenker company has a habit of leasing and operating wells adjacent to school land sections. I had a well on my ranch in a Section 17 in Payne where a guy tried the same thing. Bad business.
Bob, thank you for the kind offer. I’ll message you the details. And thanks to all for the other pointers! I’ll pursue and see who is working the court house these days.
We have oil interests in Garfield Co. Oklahoma. At one time I had the links to look at production reports with the OCC. Those links no longer work. Can anyone direct me to links that do work. Thanks
Richard, World oil prices are expected to rebalance sometime around 2020 meaning your minerals should be worth more then and that is why you are seeing the 3 yr extension. I’m not leasing much now, unless the minerals are going to be forced pooled because it will pay to wait. But if you can’t wait, M Barnes is right, 1/5th or 1/4th is what you should get and $400 is low.
Richard, No on a couple of fronts. Ask for 1/5 and 1/4th pairs. You absolutely do not want a three extension. Ask to see that actual lease draft. What they offer first is not usually to your advantage. Many of the clauses need to be negotiated more to your favor. Depending upon where you are in Garfield, that may or may not be a fair offer. First offers are usually low.
I’m new to this so any advice would be helpful. We have been contacted by an oil company wanting to lease the mineral rights to our land in Garfield county near Fairmont. The offer is $400 / acre 3/16 Royalty . The contract that I have seen is for 3 years with the ability to extend after 3 years. Your thoughts
Sandra-I leased several places pretty much in South central Garfield in the past year and received $500 an acre which was pretty much average in my area.Remember-nothing is set in stone.Everything is negotiable!
Sandra, I have seen lease bonus rates all over the place in Garfield. The specific section/location of the minerals is the most important factor in determining worth. Where are the minerals in question located?
Need advice.We have just discovered that our family and some others have interest in a horizontal well that was completed about 4 years ago.No leases were offered nor were we forced pooled,somehow totally missed.Have been in contact with the operator but nothing definitive yet.Any opinions or suggestions on what our options could be would be greatly appreciated. Thanks in advance.
Has anyone heard rumors of White Star trying to sell some of their Garfield County holdings?
Rick, you should notify the operator. At the very least, you should be offered the pooling options or the option to lease. This just happened to me and I was allowed to lease on my lease form and Ex A at the pooling amount choices. If it was a good well, then I take the highest royalty choice.
Thank you M. This is the Edwards 32-5 21N-3W well,completed in July of 2014.Our interest is in sect.5 20N 3W. Devon was the driller however White Star Pet. is now the operator ,which I have been in contact with,but no answers or negotiating yet.Did not realize a lease could be had after the fact.We were missed because of very poor diligence of the land company by not searching a probate document.The pooling order(626576) had only one election,$450 with 3/16 royalty so not much of a choice. It seems you are implying that most everything is now negotiable. Is that correct and what did you mean by " allowed to lease on my lease form"? Also,what about a back payment and should we obtain old production numbers? Thanks again M, WHAT WOULD WE DO WITHOUT YOU!
The company I was dealing with allowed me to lease late but at the pooling rate. That seems fair. I had a depth clause that they missed, so their leasing title opinion assumed we were leased, but the division order title opinion found the depth clause. I have a really tight lease and no deductions which is what you want. Yes, you should get both the leasing payment bonus and the royalties. You can also demand under statute 52-570.10 your royalty payments and a 12% interest penalty. (Since there was some cloud on title, it might be 6%, but since it was their mistake, ask for 12%)
I have the production numbers.
We use your exhibit A for the most part, with the no deduction language,thanks a bunch.We also just recently received a 12% late payment on another situation in Grady Co.so are familiar with that.There was not a title problem, just poor land work.When you say you have the production numbers, is that for the Edwards well going back to July 2014? If so,care to share?