Gastar is raising funds in the equity market again. They are paying down debt. But the Holiday Meramec well is not doing well at 49 boe a day but it is still early. Sounds like they are hunkering down for awhile and pinning a lot of their future on mid-continent.
R Story, I got some independent advice before signing and before I found this forum but figured take the money and run, pigs get slaughtered rule. Are auctions for O/G leasing new?
I got a letter from Echo Energy offering to lease minerals but the offer is something I’m not familiar with. “1000 per net mineral acre for a three year term, providing 22.00% Royalty; 1300 per net mineral acre for a three year term, providing 20.00% Royalty; 2300 per net mineral acre for a three year term, providing 18.75% Royalty”
Anyone else ever get something like this???
M Barnes, It was a lease you can find it in county records. Total was $204k. Thanks for the info on horizontal. Don’t know what formation, the Hunton or the Meramec as they overlap there.
Thanks for the info on that pending hearing M. Barnes much appreciated. I heard from a landman that Gastar was cutting back in Kingfisher.
R Story, did you find this lease information on the OCC website or somewhere else? I am looking for the details on a lease in Kingfisher dating back to the 70s. is this available online?
Lynn:
That’s very common. 18.75% is of course 3/16; 20% is a 1/5. You’ll see various others up to 25%, or 1/4.
They are giving you a choice of royalties; the higher the royalty, the lower the up-front bonus. In good areas like the STACK, I often go for the highest royalty I can get. In most cases, if you are patient, you will easily make up the difference down the road.
Royalty and mineral owners are “usually” protected in Chapter 11 bankruptcy while they restructure. Chapter 7 is a liquidation and they still are usually okay, but not always. This one is an 11.
There have been some mineral acres in far western Kingfisher county sell for $12000 an acre. However, most drilling activities currently seem to be concentrated in eastern Blaine county. I recommend readers learn as much as they can about the STACK (Sooner Trend, Anadarko basin, Canadian and Kingfisher counties). If a potential buyer offers you $X tell them you might consider $XXX. You might be surprised.
Folks in Kingfisher County and Blaine County should be following closely what is being put out by Newfield, Continental, Devon and Cimarex, the main players in the Stack play. This recent update by Newfield http://www.newfield.com/assets/pdf/@NFX_2016_06_21.pdf shows full field development planned for 2017, and an update on the
shows full field development planned for 2017, and an update on the Clouber test well just permitted last week. (page 7). It will have 9 wells, in both the upper and lower Meremac, with very tight spacing. Full field development could mean more multi well platforms in one section.
We have been reporting on most of this on www.okenergytoday.com.
Thanks so much for all of the information. This really helps someone like me who is so far removed from the oil industry and no longer living near Kingfisher.
Got an offer to buy our mineral rights in Kingfisher for $2500/acre. Does thise seem fair? We are not in a rush. I’m guessing it is best to hold for now. Any advice appreciated.
The NW/4 containing 159.73 gross acres (ADA Lots 3 and 4 and the S/2 NW/4) Section 3 15N-6W located in Kingfisher County Oklahoma
BuffaloGal…looks like to me the most action at this time is in Kingfisher Co. and I wouldn’t sell now if I were you. Everyone’s situation is different and if you need to sell I would think you should call some of the major companies like Newfield and Continental and see if they might want to make a bid on purchasing it. I believe that is a “low ball” offer that you received which is usually what they try first before offering a good one. Hope this helps. Best Wishes!
Buffalo Gal, there are several companies leasing in your area all around and in your section. That’s why you are being approached to sell. Someone is checking the leasing activity. Your offer is not a fair price. Common leasing bonus is close to that on a per mineral acre right now in Kingfisher. Here are the companies that are currently leasing in sections 1 thru 13: Crixus Holdings, Fred W. Brown, Newfield Exploration Mid-Con, Timberwolf Energy LLC, Echo Energy, Payrock Energy, Chisholm Oil LLC, Jax Investments LLC, Oklahoma Energy Acquisitions and directly in your section - Chesapeake, Okie Energy Group II LLC and Payrock Energy LLC. This is why you are being approached. There is an active leasing play in your area. I hope this helps.
Buffalo Gal, you are out of the hot zone in Kingfisher County but that will change once the areas are drilled to hold production. (oil companies drill wells so they won’t loose leases they have paid big money for). Your first offer will be a low one usually. I was just offered $12,500 for my minerals in western KF county, but we have been pooled indicating a well will be drilled soon. Thus the higher offer and we are in a hot area now.
i just found out that Marathon bought out Payrock who our original lease was through. How do i find info about whether or not they’ve filled for the drilling permit, and if so when they will begin drilling. sec 9-16n-7w Drill: RHUL-9 Any information will be greatly appreciated!
http://imaging.occeweb.com/OG/Well%20Records/1DD3ECAA.pdf
The RUHL 1H-9 spud in March. Newfield is the operator. You can watch of the completion at http://imaging.occeweb.com/OG/Well%20Records/
Type in 0916N07W in the location box.
It should be about finished, but the completion report will not be up for months. Wouldn’t expect it before October, but you might get lucky.
My family leases are with Turner (used to be Chesapeake). Is Turner part of this new development?
Sorry, I meant pump RHUL 9
thank you, JW Anderson