I’m curious if anyone is seeing any leasing interest in Section 31-9N-8W of Grady County?
Or adjacent sections 29, 30, or 32, also in 9N-8W?
Or in the adjacent sections:
Sections 5, 6 of 8N, 8W
Sections 25, 36 of 9N, 9W
I’ve had a landman for Continental (who seems to have wrapped up all of Grady County pretty thoroughly) contact me at the start of March and express interest, only to not return phone calls.
Curious if other landmen are able to lease in this area, or has Continental ‘monopolized’ the area through their sizeable production already in place in Grady Co and surrounding areas?
Thanks for any updates on the “state of play” of this part of OK.
Why didnt you sign the lease in March? Continental is a large operator, once they hit their goal of 321 acres in a 640 acre unit, they no longer care to haggle over small acreage negotiations due to the time and expenses required unless its in the sweet spot, so like all operators in their position, its a take it or leave it offer on fringe sections.
Your response Bob is condescending. The well-below market offer to lease was from Continental Resources and was made in the first days of the Iran War when it was clear oil prices were going to rise substantially, and indeed they have. If they try to pool the acreage, if they use pre-war prices I would hope the OCC would make them revise their lease rates to match the much better market we are in now, and for the foreseeable future.
This price increase is only temporary and I do not know anyone who is basing investment or drilling plans on it. If the offer was far below market, then why would you keep contacting the landman? Someone will come around if the plans for forward.
The reason I was wondering why the landman did not contact me back was because he said he would. Isn’t it normal to expect that when someone tells you they are going to call back, they do? Or is expecting someone to do something they said they would too much to ask?
He was likely an independent landman working as a contractor for the oil company, rather than an in-house employee. When the oil company terminated the contract or he was moved to another project, then he would no longer contact the mineral owners in the former area. The company might consider it a violation of his employment contract to continue talking to you. He would not have any authority to give you any information. They will assign a new landman if they want to move forward.
Silver Oak, Red Hawk and Epoch are also leasing in the area. As drilling may get closer, you may find other agents contacting you. You can lease with anyone. Or you can wait for a force pooling which is supposed to offer the highest rates that the operator has offered in the last year. If you have not leased before, it is wise to get a good oil and gas attorney to review and edit any draft lease. The drafts are rarely in the mineral owner’s favor and need significant changes. If an attorney is not feasible, then force pooling has its own advantages in OK.
How was my post condescending? Thats how large operators look at leasing. I was just providing info on how operators put together units to drill. I will be condescending now since your post warrants it. You are determining market value based on the Iran war, but thats not how large billion dollar corporations look at their future drilling plans. You think bc the Iran war has oil prices high, they are going to lease your land at a much higher offer and drill a well in a matter of months that youll be paid upon, but thats quite simply not how the industry works. You do realize they have numerous other sections to drill that have been planned months in advance, right? Im sorry that your expectations dont align with reality and how companies drill wells and why your minerals arent leased, its a tough pill to swallow for everyone, including myself.
Following up on what TennisDaze said, all companies and their contractors have priorities. It may be other sections warrant their attention, or you may not have enough acreage.
Tim, I said the same thing, hopefully the poster doesnt find your post condescending like they did mine. People ask for free advice, give it and it doesnt match what they want to hear and they dont like it. No point of giving advice on this board anymore
They say fools rush in where angels fear to tread, and I’ve never been accused of not being foolish.
When a poster asks “What should I do now?” and the response is “Why didn’t you do it before?”, that response can be heard in either of two ways. If it’s heard as an honest request for more information, he isn’t going to be offended. But if it’s heard as “Geez, buddy, what’s the matter with you that you didn’t do this when you had the chance?”, then he’s going to experience it as condescending.
Human communication is imperfect. I suggest that we assume that we’re all well-intentioned and get on with our business.
Great post. Im way to old for this, being called condescening means its time for me to step away from offering advice and this forum. Best of luck to all the mineral owners out there and hope the wells are plentiful for all!
I have only read these posts in sometime and all comments are helpful in this unfamiliar field SO Bob please don’t sign off ! We need informed persons as well as Martha. With that said do you wise folks have information on the new well in 5 5N 6W… going thru 3 sections by Continental?
Another condescending, less-than-helpful reply that offers me a ‘threat’ of forced pooling - but no way to avoid that, or other options that might help, not hurt me. I guess people offering advice in this forum look down on people seeking answers to their questions, and have no problem seeing royalty owners taken advantage of, ripped off and their asset value diminished. Your response is no way to be helpful, or kind.
