Our family holds mineral interests on these 2 parcels in Grady County, OK. Back in March we were contacted by a landman with a lease offer of $350 per acre signing bonus & 3/16 for a 3 year lease on the Sect 7 interests. We have been contacted again by this landman with a revised offer of $750 per acre signing bonus & 3/16 for a 3 year lease.Futhermore, he called back the very next day & increased the signing bonus to $829 per acre. What activity is going on in the area of Sect 7? For the signing bonus offer to more than double in less than 6 months, there must be something going on.
Is there any activity going on around the Sect 17 - 9N - 8W parcel?
We live in Florida & would appreciate any assistance.
What is happening in the area east of Chickasha is a massive drilling out of the Woodford shale formation. This formation is being drilled horizontally through that fromation for from 4500 feet to 9000 feet. In the area east of Chickasha you have to drill from 12,000 to 15,000 feet deep to get to the Woodford and then the hole is turned and follows the Woodford formation to the extent intended to drill.
These wells are very successful because there is quite a bit of oil with the natural gas production. If you would lay a ruler sort of NW-SE thru Chickasha every thing to the east of Chickasha is a gas/oil combination. Everything to the west of Chickasha, so far, has been mostly dry gas in the Woodford formation.
As best I can locate your interests they are west of Chickasha. Drillers are not drilling for dry gas for the most part. However, there are other producing formations that are beginning to get some attention with the intent to drill some of these horizontal. The Hoxbar formation is one that is being considered. Whether it is Woodford shale, the Hoxbar or some other formation close to these, there is increasing interest in the Anadarko Basin to exploit the known oil and gas producing formations of the past with the new horizontal drilling technology.
Since you had an increase in the bonus money there may be a little more coming. You could counter with $900 and then when he faints agree to $825 or $850. (Pardon my attempt at some sly humor but I have been in this business for over 50 years and sometimes humor fits right in). Although the $729 is not bad for no more drilling that is in the area of you mineral ownership.
You need to switch over to the Grady County forum main chat room. Tons of information there particularly about leases and what you need to have in them that is to your benefit. A depth clause is one of them. Only sign for the three year term, no automatic extension for two years. At this web site look for the County Groups and go to Grady County. It will be worth your while. There will be a ton of reading to do. What is special about this group is that there are individuals there like my self that are activive in the business and others that can look up information in the hard to use Oklahoma Corporation Comission web site.
Thank you for this information. The assistance from the seasoned oil & gas mineral owner veterans is invaluable.
Don Underwood said:
What is happening in the area east of Chickasha is a massive drilling out of the Woodford shale formation. This formation is being drilled horizontally through that fromation for from 4500 feet to 9000 feet. In the area east of Chickasha you have to drill from 12,000 to 15,000 feet deep to get to the Woodford and then the hole is turned and follows the Woodford formation to the extent intended to drill.
These wells are very successful because there is quite a bit of oil with the natural gas production. If you would lay a ruler sort of NW-SE thru Chickasha every thing to the east of Chickasha is a gas/oil combination. Everything to the west of Chickasha, so far, has been mostly dry gas in the Woodford formation.
As best I can locate your interests they are west of Chickasha. Drillers are not drilling for dry gas for the most part. However, there are other producing formations that are beginning to get some attention with the intent to drill some of these horizontal. The Hoxbar formation is one that is being considered. Whether it is Woodford shale, the Hoxbar or some other formation close to these, there is increasing interest in the Anadarko Basin to exploit the known oil and gas producing formations of the past with the new horizontal drilling technology.
Since you had an increase in the bonus money there may be a little more coming. You could counter with $900 and then when he faints agree to $825 or $850. (Pardon my attempt at some sly humor but I have been in this business for over 50 years and sometimes humor fits right in). Although the $729 is not bad for no more drilling that is in the area of you mineral ownership.
You need to switch over to the Grady County forum main room. Tons of information there particularly about leases and what you need to have in them that is to your benefit. A depth clause is one of them. Only sign for the three year term, no automatic extension for two years. At this web look for the County Groups and go to Grady County. It will be worth your while. There will be a ton of reading to do. What is special about this group is that there are individuals there like my self that are activive in the business and others that can look up information in the hard to use Oklahoma Corporation Comission web site.