Hello, We have been receiving royalties in Kingfisher County for many years, and noticed that production is down in the past several years on those properties: W/2 SW/4 SEC 29-T16N-R5w, E/2 SW/4 SEC 29-16N-5W, SE/4 SEC 29-16N-5W, E/2 NE/4 SEC 31-16N-5W, and W/2 NE/4 SEC 31-16N-5W). I thought that I would look into selling but wonder if there is much activity in that area and if selling is really an option. Does anyone have any suggestions or information? Being a senior citizen located out in California now it's difficult to stay up on what is happening in Oklahoma. I'm also trying to watch Blaine County as we have one Mineral Deed there.
There is lots of activity in Kfr County and much more expected. There are also many people out there looking to buy. The STACK area is the most desired property in Oklahoma right now. I know some people looking to buy if you really think you want to sell.
John, this may help? Contact Melvin Moran @
Address: 222 N 2nd St, Seminole, OK 74868
Phone:(405) 382-6001
He might be a relative? he is a respected Oil Man in Oklahoma, i know him by my research of Kingfisher,Pottawatomie and Logan County Wells to which i am a very small shareholder in a company that Operates in the State, i myself am in the UK.
Best of Luck John
Regards
Ges
He's not a relative but thank's for the info, everything helps!
I have royalty rights in section 25 in Kingfisher County and they are drilling like mad there (one well completed and another being drilled). I,too, live out of state and knew nothing of whatis going on there until an oil company called me and wanted to buy my rights for $750.00 an acre. I did my homework and did not sell…now people are offering $11,000 an acre. Since this county has two layers of shale underneath they can go down many layers. I have heard that they can do 8 wells on each level and in some cases more. You should call the OK Corporation Commission they can tell you what is going on on your property. Their # is 405/521-2613.
Thanks Marcie, that is extremely helpful. I'll give them a call. This is very good to know or we might have just sold off all 5. I still have cousins back there but they really aren't interested and never keep up on what is going on in their own back yards.
Wells have a normal decline which is to be expected. The recent drop in oil and gas prices has not helped our checks however.
Parts of Kingfisher and Blaine are quite active with new horizontal drilling. Oklahoma Energy is active in section 30 just next to you, also 28, and a few others in the township. Linn Energy and Chaparral Energy are both in the township but are in Chapter 11 Bankruptcy hearings. When that is settled, then things might pick up.
You have a few horizontal wells around you and more pending, so you might want to wait a while unless you have a real need to sell. If you have heirs, then I would not sell during this low time. If you are getting paid by either Linn or Chaparral, keep a close watch on any mailings you get from the bankruptcy court. You may have to make claims. Usually, the mineral owners are protected, but not always. If you do need to sell, you might consider getting at least three offers.
Some good sources of information are the recent annual and quarterly reports of Chaparral, Continental Resources, Newfield Resources, Marathon Oil Company. They are online in the investors section of their websites. They have good maps and explanations of the area.
Thanks very much, all this information is extremely helpful since we're in CA now and none of our OK relatives seem interested in keeping up on what is going on there. Yes, we have royalties from Linn Energy on all 5. We've received several mailings from the court and Linn. Looks like Linn has been approved by the court to keep up payments on royalties at least for now since they say it's essential to keep their business going and to be able to get leases, good for royalty owners maybe not so good for creditors. We did get a quarterly royalty payment last month. I appreciate your expert advice and info from others and think maybe it would good for us to hold on to our deeds for now. I was just getting tired of the small payments each quarter, about enough for a decent meal! Since they are drilling near us probably good to hold on. Hopefully Linn will get through the chapter 11 quickly and put down some wells.
On the Linn issue, make sure you have a copy of the most recent check stubs and try to find your original division order and lease. You may need them if you have to file a claim.
I do have the latest Division Orders and records of the payments/checks but don't think we have copies of the leases or the Mineral Deeds. One of my siblings had the older records (deeds & leases) when our parents passed away but she cannot find them now. Since I'm handling things now (I'm the youngest at 70) I should probably try to get copies of the deeds and leases but not sure where to start.
The first place you can look is on okcountyrecords.com
They only go back so far in time digitally for the ones you can download easily. However, the counties that are covered will have the county clerk's name and address and you can contact them to get copies. Good to have for your files.
Thanks. I just looked at the records but they only go back to 1998 and ours aren't there so they are earlier. I'll call the County Clerk in a couple of hours to check. I also checked the Oklahoma Corporations Commission database and found our sections and the wells information.
Is there any way to find out if the decreased production on a specific well is intended by the producer because of lower oil prices as opposed to the normal decline?