Help please! regarding companies trying to purchase my in-laws mineral rights

Oklahoma Mineral Rights Grady County, OK
1

My in-laws own mineral rights on:

Section 25-8N-7W and Section 30-8N-6W in Grady County, Oklahoma.

There are companies offering to buy their mineral rights from $1,000 to $4,500 per acre.

Continental Resources has filed to drill on both sections. Have they started drilling?

Have any wells been drilled nearby that produce? Any help is greatly appreciated!

Thanks

Gary

2

Continental just received a spacing order this week on 30-8N-6W. 25-8N-7W was approved in 2010. I don’t see any permits or other filings.

If someone is offering you can bet there will be a well there in the future.

Yes, there is a pretty good producing well in an adjacent section.

3

Rick, thank you for the response, sorry for the delay in getting back to you. What is a spacing order?

Do you think Continental will drill on both sections? I am going to read up on the oil jargon and hopefully will cease to be so ignorant.

Thanks again,

Gary

Rick Howell said:

Continental just received a spacing order this week on 30-8N-6W. 25-8N-7W was approved in 2010. I don’t see any permits or other filings.

If someone is offering you can bet there will be a well there in the future.

Yes, there is a pretty good producing well in an adjacent section.

4

Rick, how good was the well in the adjacent section, any idea?

Thanks, Gary

Rick Howell said:

Continental just received a spacing order this week on 30-8N-6W. 25-8N-7W was approved in 2010. I don’t see any permits or other filings.

If someone is offering you can bet there will be a well there in the future.

Yes, there is a pretty good producing well in an adjacent section.

5

A spacing order is one of the first steps to getting drilling approved. It will basically establish a 640 acre unit for the well in this case. I would guess you will see both drilled as they are right next to each other.

The adjacent well was the Standridge and it is pretty decent. Initially tested at 132 barrels a day it produced 15,500 barrels in the first 6 months it was online.

6

Thanks Rick. You are very helpful.

Gary

Rick Howell said:

A spacing order is one of the first steps to getting drilling approved. It will basically establish a 640 acre unit for the well in this case. I would guess you will see both drilled as they are right next to each other.

The adjacent well was the Standridge and it is pretty decent. Initially tested at 132 barrels a day it produced 15,500 barrels in the first 6 months it was online.

7

Gary, if you’d be interested in selling your minerals, I’d enjoy speaking with you further.