Grady County, OK - General Discussion

@graceful99 See chart

Well Name Notes STR Amount NMA Price Per Acre Royalty Amount
PLATO 1-16H FP 12-7-2012 16-4N-5W $85,000 5.00 $17,000 3/16
ROBERTS 0607 12-1-1MXH Fracking 12-6N-7W $870,000 58.00 $15,000 20%
ROBERTS 0607 12-1-1MXH Fracking 12-6N-7W $116,000 10.00 $11,600 20%
WAGNER 0607 15-22-1WXH Spud 22-6N-7W $69,000 11.50 $6,000 Unknown
None Listed 12-6N-8W $55,179 24.52 $2,250 3/16
SPROWLS 1H-11-2 Spud 2-9N-8W $170,000 25.00 $6,800 20%
SPROWLS 2H-11-2 Spud 2-9N-8W
Note: FP = First Production
1 Like

Owners actually sell royalties while their wells are being spudded or fracked? Seventeen thousand an acre for the Plato looks okay but that is an old well. Will they drill again at this location? Seems to me these are not good prices per acre (except for the Roberts). This does not seem to bode well for oil prices in the future.

There is a business relationship between the buyer of the minerals in Section 16-4N-5W and the Plato well operator. So that suggests to me there will be more wells.

I think all of the mineral buyers got bargains, especially the buyer of the minerals in Section 2-9N-8W. Two wells being drilled in that section.

There is a pooling hearing set for 8/16/22. If the driller is prevails (i.e. granted relief) does that mean all rights holders who have not yet committed to a lease/bonus offer will be compelled to accept a minimum royalty? With two drillers competing does that mean the one who signs up the most acreage wins the right to do the drilling?

The pooling will offer a range of bonus/royalty pairs, not just a minimum. You can pick which one you prefer. Most of us would take the higher royalty as the bonus is insignificant in comparison. The OCC will choose the operator based upon the arguments presented or discussions between the attorneys. Sometimes a second company will file in order to get the first company to get moving. Most of those issues are settled in the hall of the courthouse…

1 Like

To add to what M_Barnes said, an Order will be issued setting forth the terms that you get to chose from and naming the Operator. You will have 20 days after the date of the Order to make an election as to which combination of bonus $$ and royalty you chose. If you elect to participate, you have an additional 5 days to make satisfactory payment to the Operator. You need to send your election to the Operator & its address as set forth in the Order and do so via Certified Mail, Return Receipt.

Q: I received an offer from one of the drillers of $1,000 “PPA” and 1/5th royalty. I don’t recall seeing that term before. Can someone explain its use in the execution of oil and gas leases? Thanks

Pre-Pooling Agreement maybe… I signed a PPLA in another section: Pre-Pooling Letter Agreement. Tied to the pooling. I got a 22% royalty that was not offered in the pooling. Could have held out and been dismissed and waited for the 2nd pooling. Those who did got the 25% royalty option in the 2nd pooling.

Hindsight is 20/20.

Not sure, but will bet that PPA is a typo and should be PNA, per net acre.

The landman replied-- “PPA”= price per acre.