Hi, my husband inherited land and mineral rights in Canadian county OK. He has been receiving royalties since inheritance (about 1.5 years.) He didn’t receive a check this month and when he called ovintiv they said the well had dried up and they were working on a new one, my husband and I are going into this blindly so is this unusual? Is there anything we should do? This is whole new world so any feedback/information would be greatly appreciated.
If you list the section, township and range plus the well name, I can look it up and see what activity is in the area. It is not unusual, but getting more information would be helpful to you. The leases may or may not expire depending upon how long it takes them to drill the new well.
Thank you, any information would be so helpful. Below is the information regarding the well.
We’ll 732836. API Well 35-017-24836. Vogt 1H-9x Canadian county section 016 Township 014N range 006w.
Also, what might be fair market value if he decides to sell? He’s been getting phone calls with offers in the 5-7K per acre range.
Stall on any of the calls. (My opinion). Here is why…
The well was online as of June 2022. Sure does not look like it is dried up. It was shut in from March 2022 to May 2022 probably for the nearby wells to be fracked. It actually came back on stronger in May than it was in Feb. Ovintiv had the Divide Clark horizontal wells which spud in 16 and went into 28. Five of them! Ovintiv has permits for at least three more wells in section 15/27. And three more wells in 27/34. So they are very active right around you.
That is why he is getting the calls. Increased density possibility for your section. Most buyers only buy for the production value of the current well. They do not usually buy for the potential of the new wells. They certainly intend to make a profit off of any purchases. They take on the risk of the timing of the new wells or no wells at all. in my experience, most first offers are low just to see who will bite.
Suggest you wait a few months and see if the current well checks come back and if there are new wells pending for your section- the “new ones”. Your checks are delayed by several months from the actual production, so wait a bit. In the meantime, move over to the Canadian county area read what is going on there. Get as much information as you can before making a decision. And it is not an all or nothing thing. You can sell part and keep part.
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