We have been offered $1000/acre for a 1.6 acre lease. We have no idea of the going rate in the area. The company making the offer says, "The bore-hole was sold."
Where does one begin? Any information would be helpful.
was the offer by Double J Resources?
Yes, it was and we decided to "hold" for now. What about you?
Thank you Chris.
Donna
I have not done anything. I am trying to find out about it. Do you have any other info?
Chris,
I see Calyer listed as another owner of rights on the same section. "There are about 25 owners", Double J said. It seems that they are trying to buy them up and re-sell or develop. I got the intuition it was to resell-he seemed like a broker but who knows. I have a photo of the lease list that Wade Collier, JJ, sent. He seems to be contacting all of them including me and you. I do believe some have sold.
In response to my "hold" he said:
"If one decides to drill a well you will have to make a decision to either participate, assign your interest out, or go non-consent. If you elect to participate, you will have to pay the well cost which can run thousands of dollars depending on the operator and what they are wanting to do".
The lease was my father's. We are just not that hungry right now and we don't know enough about oil & gas leases to make an educated decision at this time, tax ramifications, etc. It's a gamble but rather interesting.
Your take on this could be beneficial to me, no?
Donna
Donna,
Very similar situation. This was my fathers also. We did not know he had it. I am going to see a man tomorrow has some oil positions in Texas to see what he thinks. I also asked the same question in the general discussion area and received a response that it should be worth $4000 plus 1/4. I responded and am waiting.
Hi Chris.
We did not know that my father had the lease either. He passed in 2001! Because we have to split any proceeds between heirs we thought $1600 was hardly worth the trouble and why not "let it ride". Please let me know what you find out.
Thanks.
Donna
Portland, Oregon
Hi,
The man I talked to today is a retired geologist who lived in Texas, but worked all over. He is going to try to get in touch with people he knew/knows in Edmond to check on Double J.
He says to be careful of providing money to do development.
He is going to get me the name of a company that can locate other properties that my father might own. Will you please send me the info on the list you have that has our name.
If you look in the general discussion area, I received a long response to my question that might be helpful to you.
I will send more as I get it.
Chris
Chris,
If you send me your email I'll send you the doc, photo form, JPG's, from Wade Collier's JJ email. I downloaded them so I wouldn't loose the pics.
Good advice from your geologist friend. I'll go to general discussion and take a peek.
Thanks a bunch.
Donna
calyer@fairpoint.net
Thanks
You will not have to pay for any well costs, as long as your lease says you would not bear any costs. I do not know of any court docs that would let that language be in a pulled lease. Don’t let them scare you.
If you participate in the well, that is called a Working Interest and you would have to pay for the drilling of the well and production costs. I do not suggest that for the novice due to the complexity, money involved and a whole host of other issues.
If you are a mineral owner, then you can lease your minerals if they are not already held by production. You need to be careful in the wording of the lease to not accept any post production charges.
EOG is planning a horizontal well in that section. The pooling may come to your shortly. You must decide in 20 calendar days what your bonus/royalty option will be. I prefer the largest royalty and the lowest bonus as that usually is the best in the long run. If you have not gotten mailings from Either Native or EOG, then you need to contact EOG and make sure that you are on the mailing list.
“You must decide in 20 calendar days what your bonus/royalty option will be.”
To be more accurate, the elections must be made within 20 calendar days after the date of the Order issued by the OCC.
Todd M. Baker
Yes, I should have been more clear. The date of the Order will be at the bottom and you must have an answer to them within the 20 calendar days. Best to send by certified return receipt mail and keep a copy of everything you send. Sometimes you have to fuss a bit to get your payments, so good to have the tracking number for the date that you sent it and they received it.