Interesting to see this today as we have been approached to “extend” our lease for a year as TPR has not drilled yet. The guy told me that they wanted to offer us this extension as a “courtesy” because they hadn’t drilled and our lease is up in December. However, we show that the Chastain sections 23 & 26 8N 7W was to begin drilling 10/12/2018. When I pull up OCC records it doesn’t have anything listed as far as production and all I see are the same forms previously filed. So, my question is whether this is up for negotiation at a higher price (as they are only offering less than a $1000/acre)?
Check the OCC well records to see if it has spud. Form 1001A. Use the surface location. Always ask for more. Actually, in this case, tell them that you want the pooling amount for 23 & 26 which was $6000 3/16, $5500 1/5 or $0 1/4. If you have unfavorable clauses in your lease, wait for it to expire and then get a new one. They will have to pool you if they don’t lease you. Are you talking about 23 or 26 or 8N 7W? or a different section?
Thanks, that’s what we were thinking. It’s the Chastain 26 8N 7W - shows it was spud 10/12/17, however, they postponed and amended production to start October 12, 2018 to change to Woodford target. The gentleman I spoke with said if we couldn’t come to an agreement on lease price then it would go back on the market for anyone to pick up. When I asked him about them supposedly starting the drilling October 12, he said he didn’t know anything about it. He said he was working for TPR to extend lease for another year as they (TPR) had not actually drilled yet. Confused with it all. Maybe we should call TPR??? The original lease expires December 2018 and the permit to drill expires January 2019.
Definitely call because I saw that spud report as well. If they want to extend, fine, but it had better be at market prices unless you had an extension clause in your lease. This one is a bit odd because they did spud the well. But they may have only drilled the surface casing and it has been over a year since they did it.
Currently fracking the MICHAEL 0607 11-2 1WH … (SHL = 13-6N-7W)
That’s awesome news! Hope it’s a good one.
Don, Is the fracking just now starting on this well? I spoke with Camino 2 months ago and they were starting the fracking then.
Last week was the first time I noticed the sound barrier fence they put up. Putting that fence up could have set them back a bit. There are houses directly across the road.
A couple of days ago I noticed the fracking equipment setup. Today is the first time I have seen the crane in the air over the wellhead.
Ok. Thanks for the info! We have 80 acres worth of interest in this well in 11-6-7. Sure will be glad when it’s complete! Terisa
I have been trying to contact Camino on a few of our leases and can not find anyone with a telephone number. Is there a chance you could share your contact information?
I think that area has been as high as $11,000 per acre last year.
I know some one in 14-9N-5W how currently has an offer of $10,000 per acre.
I am unable to view the posts in Grady County. Why is this?
I see you are having some problems. Try logging off and then logging back on. Do you have your email watches set?
SUSPICIOUS OFFER TO BUY- partial repost from Garvin. This company has showed up in Grady now. I have upgraded it for Grady.
This is a caution note to folks who may be getting offers from a certain company that has a $500 Collection item attached to the bottom and a teaser of $3,000,000 at the top. It shall remain nameless since I have had almost identically worded offers from two companies like this. I have run into these guys before and I am sure they have a herd of attorneys. Please read any offer like this carefully. Note that they want you to grant them power of attorney, agree to their mediator, their venue with no recourse. They can withdraw the offer at any time. They want you to hand over a signed conveyance without getting any money. (I would never hand over a deed or a lease without getting money at the exchange.) Note that the draft does not specify how many days until it “might” be able to be cashed. They want a deed, your 1099’s, your leases and your social security number and never tell you when they will pay?(I am very careful with my SS# and do not give it out). They want you to do their title work for them. Sounds suspicious. If you even consider this deal, talk to an attorney first. Tell the attorney to check the company with the Better Business Bureau and run a check with the Attorneys General of OK and KS. I have…
Now lets get to the offer. They want me to multiply my current decimal amount by $3,000,000. For a an old vertical well that I have interest in, that would be about $1950. However, I have had the engineering done on that well and at $4.48 gas just for a guesstimate, that well has $34,000 worth of value left. And just to show how much I would be leaving on the table, there are six pending horizontal wells about to spud. Even with the decimal change for a multi-section set of wells, I would never sell that future potential for $1950-or maybe it is just the $500 from the suspiciously worded draft payment. These two companies have sent me multiple letters over the years offering to take these “old” wells off my hands. In every single case, I don’t even answer them and have had very nice horizontal wells-many times multiple horizontal wells- follow soon after. This is yet another example.
I have marked over the pages of the offer in black magic marker DO NOT DEAL and made a note in my files so that my children will be aware to stay away from this company.
Please check the reputation of any company that offers to buy your minerals. Get offers from several companies if you feel you need to sell. Reputable ones will do their own title work and bring a check when they exchange for the deed. Learn about your area. Check the investor presentations of the operators doing business. See where they are doing drilling next. Check the OCC well records in the sections around you to see if horizontal drilling is coming. Ask questions on the forum. Be mindful if you have relatives that may not be as watchful as you are. We have to be energetic in protecting our mineral stewardship.
Is this proposed well in Section 24 and/25?
We received a similar offer for 065n7w. I started to post something similar to what you did. I found the offer very deceptive and was concerned that some people could get confused. Thanks for posting. Sometimes I wish these unscrupulous companies would show up in person rather than just sending their garbage through the mail.