Hutch…I can’t understand why you don’t take me serious! lol
Thanks a million guys!!!
I just joined the forum. A few years ago, I inherited about 10 acres of minerals in sec 19 1N/3W. Last year, I signed a lease with Chesapeake and received a hefty bonus. Since then, I haven’t heard about any activity but have received several offers to purchase my interest. I know almost nothing about o&g and live in Florida. Can anybody let me know if anything is happening in my area or would I b better off trying to get the best price for my interests.
Patsy,
You might look in the Stephens county group at the activity there in 2N-4W. Your rights are only 4-6 miles from all of the big activity three.
Pooling orders for 2n-3W in the last 18 months.
Sec - 3/16 - 1/5 -1/4
3 1300, 1200, N/A
6 1000, 925, 0
9 1500, 1300, N/A
10 1300 ,1200, N/A
18 1300, 925, 0
19 1300, 900, N/A
20 1000, 800, N/A
Just got lease offers from Newfield (via landman Spencer Taylor) for 16-3N-4W and 31-2N-3W, both for 3/16 and $700 first offer. 31-2N-3W is an area they said they are generally done leasing and we had missed an offer a while ago due to address problems.
That was for $1300 per acre, not $1200. This will be my last post tonight due to confusion.
Good job Rick. You make it look so easy
Patsy,
Chesapeake just drilled a well 1 mile south of that location into the Woodford last year. It made about 100 barrels of oil a day in the second month of production. Not a barn burner, but it is not that bad. I think the offers to purchase are an indication of something to come to your section, but it may be a couple of years before you see any income.
I feel that area is of interest. We have rights a few miles from yours and if I were to consider selling properties, it would not be near the top of my list to sell at all.
Chris, I leased to Jackfork for Newfield back in Feb & March of last yr. (2012) in sections 29, 32 &34 of 2N-3W for $1200 per acre. It sounds like it’s all in the same neighborhood. Maybe they feel like they have more leverage now, but that sounds kinda low to me.
Chris, we leased Sec. 33 2N-3W at the end of 2011 to Newfield for 1000 per min acre @ 3/16. That’s pretty close to you in Sec. 31. Now we’re getting offers to purchase royalties in that same section, so shouldn’t this indicate things are looking pretty good there?
Chris-my mistake, I just checked my records and it was for Continental. Sorry for the confusion on my behalf.
Chris, You’re in the drivers seat. Should be able to get 1/5 and a good bonus.
Thanks everyone! I’ll let you know what we end up with.
Chris I was forced pooled in 21-3n-4w and they were ordered to offer $1900 for 1/8th, 1800 for 3/16th, 800 for a 1/5th, or no cash and 1/4th. The well has been drilled in 21 and they are waiting to frack.
Linda, I know what you mean, kind of quiet, the lull before the storm I guess. I’ve got a couple of irons in the fire but playing the waiting game right now.
I wish we had been offered the 1/4 or 1/5 option when we signed our lease. That could have worked into some REAL money even on our tiny bit of minerals! 3/16th was our only option and unfortunely I wasn’t on this forum to have anyone advise us to ask for more . Years ago when everyone else was getting 1/8 and they wanted to lease one of our sections Preston told them he wouldn’t take it but he would take 3/16 and they gave us that. We were the only ones that got that then as far as I knew.
Of course this time around we had already signed before we knew anything was really happening in 2n,4w Stephens Co. We just figured it was like years in the past when they would lease it for 3 years and that time would run out and no one would drill and then we’d have it for several more years unleased. Praise the Lord that they didn’t drill one of those little shallow wells and it be HBP up until now! We feel so blessed we could just toot! Toot the horn of our little red wagon, that is!! lol
A Newfield friend didn’t even show for coffee this morning. Hope he’s busy in a good way down in the ole Scoop!
The landman called me back that I had called about the little piece of royalty that mom and then dad owned for years and then his ownership just disappeared when a new company (Citation) bought the old one out. This man whose name and number was on the papers they sent him the other day was really nice and ask me all the questions about grandparent’s names, where their estate would have been probated etc. He’s going to check into it. Had some ideas about how since mom’s estate was probated in Garvin Co maybe they didn’t get that little 1 1/2 acre piece of minerals in Sec. 3 2S-4W in Stephens recorded in Stephens Co. I really feel like he’s going to be able to help us to get dad appeased on that so Dad can find us another project to be working on. lol For some reason the last few months he feels like he’s got to keep us busy working on something all the time. Guess he just wants to get his affairs in order in the time he has left. The paper he received said they didn’t find that he was credited with any minerals but in case they found that he had them which option would he take so he would not have to be pooled. The offers for bonuses were low but he wanted the no bonus and 1/4 anyway so I didn’t figure he needed to wait around to be pooled or ask for more bonus.
Anybody got any news they want to share this morning? For some reason I feel like I’m the only one talking~how rare! lol
Linda,
A 1/4 would have been possible, it was offered at the pooling. So it could have been negotiated in a lease. “negotiation” is the key word. You always have the option of not leasing. However you would have gotten absolutely nothing if you passed up on a lease and they didn’t drill it.
If my crystal ball was working correctly, I would take 1/8 and the highest bonus on the leases that expire without drilling and ¼ on the others, and participate on the ones that were the best producers. Might as well use it to pick powerball numbers as well.
Rick, If you had that kind of crystal ball, you would have a hard time getting any sleep with all of us knocking on you door lease offers in hand.
Oh, I’ve been meaning to ask Rick–or anyone else–I forgot how we can figure out if a permit’s been filed to drill on our leased land. Is there a way to do this off the hard-to-navigate OCC website? Other?