# Guaging serious intent to drill?
**URL:** https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571
**Category:** Grady County, OK
**Created:** [April 18, 2012, 6:14pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571 "2012-04-18T18:14:49Z")
**Posts on this page:** 15
**Page:** 1
### Author:  [@Mark\_Jensen](https://www.mineralrightsforum.com/u/Mark_Jensen)
#### Post date: [April 18, 2012, 6:14pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/1 "2012-04-18T18:14:49Z")
I’ve received a lease offer (in Section 34) that included an AFE and a statement that an application would be filed with OCC. Does it seem to others this is a reasonably serious signal of intent in the near future, or are such statements (and AFEs) routine parts of lease offers? We’re new to this game.
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### Author:  [@Ron\_McKenzie](https://www.mineralrightsforum.com/u/Ron_McKenzie)
#### Post date: [April 18, 2012, 6:29pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/2 "2012-04-18T18:29:38Z")
36 ? N-? W Pooling notice should be close behind. Should have lots of time. Don’t rush yourself.
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 18, 2012, 6:45pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/3 "2012-04-18T18:45:12Z")
Mark, Would you be talking about Section 36-3N/5W by any chance?
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### Author:  [@Mark\_Jensen](https://www.mineralrightsforum.com/u/Mark_Jensen)
#### Post date: [April 18, 2012, 7:06pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/4 "2012-04-18T19:06:47Z")
No. 34.
Michael Hutchison said:
Mark, Would you be talking about Section 36-3N/5W by any chance?
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### Author:  [@Mark\_Jensen](https://www.mineralrightsforum.com/u/Mark_Jensen)
#### Post date: [April 18, 2012, 7:16pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/5 "2012-04-18T19:16:46Z")
I’d seen so much discussion about 36 I accidentally wrote it in my question/post. Our acreage (and lease offer) is in Sec 34. Sorry for confusion.
Michael Hutchison said:
Mark, Would you be talking about Section 36-3N/5W by any chance?
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 18, 2012, 7:19pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/6 "2012-04-18T19:19:47Z")
Marc, still need to know Township and Range ?N/?W
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### Author:  [@Mark\_Jensen](https://www.mineralrightsforum.com/u/Mark_Jensen)
#### Post date: [April 18, 2012, 7:34pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/7 "2012-04-18T19:34:29Z")
I don’t have that with me-- was looking more for folks’ take/knowledge about whether AFE and statement about intent to file app with OCC meant anything.
Michael Hutchison said:
Marc, still need to know Township and Range ?N/?W
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 18, 2012, 7:50pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/8 "2012-04-18T19:50:36Z")
My take is that it shows a serious interest in drilling that section but it helps to know what type of application has been filed because several are made during the process. The exact location is very important because you can look at the OCC website and see what’s happening in the immediate area around your section. There are certain indicators by which you can gauge at what point an operator is in the process leading up to the issue of a drilling permit.
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### Author:  [@Rick\_Howell](https://www.mineralrightsforum.com/u/Rick_Howell)
#### Post date: [April 18, 2012, 9:24pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/9 "2012-04-18T21:24:39Z")
AFE? I’m drawing a blank.
I have seen a few letters on different sections “proposing to drill” Then “be advised”… intends to file a pooling application with the OCC… Then “your election does not excuse or allow you to delay your required election.”
One was several months ago. One as late as last week. I feel the offer bonus is too low for the current market and area. A bit deceptive?? But, I could be wrong. I do know they have not filed any applications (pooling or otherwise) at all on the areas. None of them. I think it has been 6 months on 1.
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 19, 2012, 12:02am UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/10 "2012-04-19T00:02:56Z")
Authorization for Expenditure, one of those cost estimate sheets that get filed with pooling orders.
Yes, a little deceptive, I don’t see where it has any authority until ordered by the OCC.
Don’t feel bad Rick, I had to google it!
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### Author:  [@r\_w\_kennedy](https://www.mineralrightsforum.com/u/r_w_kennedy)
#### Post date: [April 19, 2012, 1:31am UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/11 "2012-04-19T01:31:24Z")
I think potential lessees sometimes use AFEs to sticker shock people into signing a lease; they can be quite inflated. I don’t see the point of that as the uninflated numbers are large enough.
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### Author:  [@Mark\_Jensen](https://www.mineralrightsforum.com/u/Mark_Jensen)
#### Post date: [April 20, 2012, 12:29pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/12 "2012-04-20T12:29:36Z")
I’m still getting the hang of the system. It is Township 8 North-Range 6 West.
Michael Hutchison said:
Marc, still need to know Township and Range ?N/?W
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 20, 2012, 12:55pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/13 "2012-04-20T12:55:46Z")
Marc, Continental Resources applied for an order to pool that section in 2010 but the cause was dismissed, don’t know why. They just completed a well in Section 32-08N/6W; results not yet announced. They have plans to drill Section 29 but I don’t think they have a permit yet. The results in 32 will probably have some bearing on the future of 34. They are probably keeping quiet until their quarterly report in May, I think the 21st. Until applications get posted on the OCC website, we won’t know their intentions for sure. What you have been told so far is encouraging. Was it Continental or some other company that sent you the AFE?
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### Author:  [@Michael\_Hutchison](https://www.mineralrightsforum.com/u/Michael_Hutchison)
#### Post date: [April 20, 2012, 4:00pm UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/14 "2012-04-20T16:00:12Z")
MARK sorry I misspelled your name.
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### Author:  [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 15, 2018, 3:48am UTC](https://www.mineralrightsforum.com/t/guaging-serious-intent-to-drill/21571/15 "2018-08-15T03:48:34Z")