How can I find out if a company renewed a lease? I have called several times but keep getting a run around and no answers. The section of land is 13-14N-4E in Lincoln County.
Liz, Maybe this will help you. http://www.reuters.com/article/2013/10/15/us-energy-oil-cushing-facā¦
ANY DRILLING ACTIVITY NEAR MY PROPERTY NOTICED? I LIVE OUT OF STATE. 31-14N-4E.
http://www.equalenergy.ca/en/presentations/q1_2013_equal_investor_pā¦
You might find this interesting. It is about the Hunton dewatering.
Bob, How can I get a picture of the Equal energy production legend for my property? 31-14-4E?
If they are going to drill horizontally, then you want the 1/5. More money in the long run.
Thank you for the info. Just wanted to be sure before signing and committing to a lease.
Brenda, is a pooling or a lease? If you are in leasing discussions, then make sure you get the clauses that you need-depth clause, no warranty clause, pugh clause, shut-in limited to two years, etc. If you do not want to mess with leasing, then you can wait until they force pool you and pick the options then. Force pooling can be a good thing if it limits the zone of production. They have to drill in either 180 days or 365 days. The lease amounts offered are supposed to be the highest within the nine section area around yours.
Go to the Stephens forum where I just posted a calculator that will help you walk through your options.
Just received a request to lease from equal energy. I can either 1) accept 175.00 per acre with 1/8 royalty interest or 2) accept 150.00 per acre with 3/16 royalty interest or 3) accept no bonus per acre and receive 1/5 royalty interest over a 3 year term and as long thereafter as oil or gas and their constituent elements are being producedā¦ which would be the best option?
Brenda according to records on the OCC website Equal has pooled several sections around you,14,16,17 and the rates they offered you are the same as the final orders by the OCC. It depends on the amount of acreage you own and if you want the money up front with the 3/16 or take the better royalty 1/5 with a good well paying out more in the long run. With these horizontal wells they are drilling there is a good chance you could have several wells drilled on the section.
Roni and Liz, There will be more than 1 well, possibly 6 or more per section, because this is unconventional drilling and production that should last decades In āOkieā speak, āYou aināt ever seen nothin like itā.
The amount paid is based on ownership. It is not uncommon for these horizontal wells to pay $2000-$3500 per acre for the first year of production (based on a 3/16) RI. The Poteet that was one of the first in the SCOOP paid $2400. Multiply that X the number of acres. The production will decline pretty fast with the shale wells, so donāt expect that to be a permanent income.
The big offers are coming for those sections where multiple wells are imminent. There are no guarantees that every section will get a multiple horizontal wells. The operators are going to pick and choose where they can get the best return on their investment. We own rights in over 100 tracts in the scoop and have not seen a horizontal well drilled within our rights in the recent āoil rushā we have been seeing the last 3 years. Not one, much less multiples.
Regardless if they are making an offer to purchase, they are still basing that purchase on what it will bring. There is some speculation and risk involved with their offer, but you can bet they have done their homework.
The landman you are talking to is representing an operator, an investor, or a buyer. He is working in their best interest, not yours. Place no more faith in them than the car salesmen at the dealership trying to sell you a new car. Yes some are more honest and helpful than others, but the bottom line is they are working for the other team.
Everyone talks about āa good wellā. What if the well does not come in as they say. Your bonus is the only money you have.
Roni,
They are not offering to buy and put themselves in a position to lose money. They are buying because the offer they are putting out there allows them a profit, and more than likely a substantial profit. They have the knowledge and expertise to utilize and are basing their offer on the amount you own.
There can be very good reasons to sell. Iām not one to always say ānever sell your mineralsā. However donāt count on being able to sell for more than 25% of the royalties you would see in the next 3-10 years.
Roni and Liz if you would like to read about the possibilities of this play go to the Grady and Stephens County forums and you will see what has happened in just a three or four years. Companies are offering up to $18,000 an acre to buy your mineral rights. They have started to drill 6 to 8 wells per section. Do not make the mistake and sell like I did in Grady County 20 years ago. I could be getting a royalty check now just on one well of around $1,000 a month on just an average well in the area. PLEASE DO NOT SELL ,WAIT AND SEE WHAT HAPPENS UNLESS YOU NEED THE MONEY BADLY.
Hereās a look at your future. This study is long, but Iāve read it and page 79 states, āBetween 80 and 92 percent of crude exports are projected to originate from PADD 2 (Midwest) and PADD 3 (Gulf Coast)ā. Also, take a look at the timeline of this study which is present date to 2035. Thatās 21 years without decline. http://www.api.org/news-and-media/news/newsitems/2014/mar-2014/~/meā¦
Lincoln: Williams Clayton Energy Inc.; Clo No. 2-16 Well; NE1/4 SE1/4 NW1/4 SE1/4 of 16-12N-05E; 162 barrels oil per day, 148,000 cu-ft gas per day; TD 4,921.
Lincoln: Roberson Oil Co. Inc.; Silkwood No. 1-30MH Well; S1/2 SE1/4 SE1/4 SW1/4 (SL) of 30-17N-04E; 216 barrels oil per day, 370,000 cu-ft gas per day; TD 8,100.
Ron, I am receiving royalty from some producing wells in the general area, passed down from grandparents, but this is the first time I have been included in the business side from the beginning. I donāt understand a lot of what is happing. Thanks for your response.
Anyone know of activity in Sec 18 Township 13N, Range 6E of Lincoln County? Would appreciate any info