Garvin County 28-2N-2W


#1

Hi Everyone

I am new to the forum, and Mineral Rights owner. Ive only signed one previous lease for exploration now Rimrock is wanting to drill. I’m not sure how to negotiate.

I’ve just been presented a lease for an inherited share from Rimrock Resources for 28-2N-2W Garvin County. They have installed a Horizontal Well named George 1-28 USH? Can anyone give insight about the location? My family lived there in the 1900’s and I was curious.

Does this area seem to produce quite a bit? I know Vertical depth 7,673 ft and total measured depth is 14,354 ft. Not sure if that matters to whats produced. Are there any helpful internet links?

As for the lease

Other family are wanting to elect 3/16 royalty $750 per net mineral acre with a 81.25% net revenue interest.

I thought about not taking a royalty bonus and collecting 25%.

What would be the best option please? There were 5 options on the form. One of them asking for 7 million which i sure don’t have. =)

Thanks for any help that can be offered because learning the ropes has been overwhelming.


#2

$750 for 3/16th is in line with local pooling amounts but it looks like last week Rimrock was granted an extension to drill the well until January of 2020 due to rig availability. In other words, there’s a chance other offers might come in before the final pooling order.

A quick glance shows the wells in that area seem to be doing alright.

https://alexschwab.com/table.php?str_filter=2n-2w&order_type_additional=&Date=&object_id=&applicant=&relief=&page=


#3

Thanks so much for this information every little bit helps clear my confusion. Do you know how long one usually has to sign the lease? Have a great day.


#4

As to your curiosity about the surface. go to Google Earth and search for:

34.6157241, -97.4141192

That location is the center of Section 28.


#5

If a well is pending in a known good reservoir, I usually take the highest royalty and the lowest bonus. The bonus is only paid once, but the royalties will be paid on the first well as wells as any subsequent wells, so in the long run, usually a much better deal.


#6

It looks like section 28 is part of a multiunit with 33, and a pooling order was already issued. The allocation is split 65% for section 28 and 35% in section 33. Normally, if you didn’t elect within the time specified in the pooling order, then by default you will automatically elect into option 1 ($1500 at 1/8).

I would read the pooling order very carefully and maybe even contact RimRock.


#7

Thanks so much. I enjoy the historical and family aspect of where my Family is from.


#8

Thank You for the advice!


#9

Thank You very much Kobold_Energy for the responses.