Lincoln County, OK - Oil & Gas Discussion archives

I have received a request to purchase an Oil and Gas lease. 100/acre signing bonus and .1875 royalty. Seems low. The property is in sec 19-17N-02E Lincoln County. I told the land man that I was not very interested at that price and that I would wait for force pooling. My understanding of forced pooling is I would receive the highest rate that anyone receive of the 640 acre and the adjoining square miles. My question is what's the going rate for that area? Is there/what is the time period for the force pooling , % that they would have to match? or, please direct me to where I can find it for myself. Thanks very much!

Grant, Ron and M Barnes are right. Watch and wait is great advise. Itā€™s just heating up and your offer is very low. Iā€™ve been told the oil and gas reservoirs cover huge areas involving many townships and ranges which includes more than one county. I am getting $250 and up cash bonus and 1/4h for 3 yr leases with no option to renew the lease in surrounding counties, but first offers were $100 3/16ths 3 yrs.

summer40, Whatever the going rate is right now will improve as this Huge Hunton Lime plays ramps up. The Hunton is full of water and now that OK has salt water disposal pipelines and injection wells the Hunton will be fully developed. The Hunton is not limited to Lincoln county, so find out what central and north central OK going rates are, like Logan and Payne and you will have a better idea. There are ridiculous stories that if you donā€™t lease your section will be passed over. Iā€™ve been leasing all across OK for over 30 years and have never been passed up by waiting to get the best offer. I waited 3 years in Payne to get the best offer and now have wells. Hereā€™s an article on the Hunton, but there are other formations that will be developed in our area also.

http://www.drillthis.com/history-hunton-field-mystery.html

I see some 1/5 and 1/4 in 17N 1E with some new players as well. Leasing is just starting. I vote with Ron, wait a while. Those early offers are usually half of what they will eventually offer. There is a pooling pending in sec 25, so when that is settled, will be an early indicator of the market trend.

Some older poolings in the township range from $75 3/16 to $150 3/16 for 40 ac spacing in 2012 and 2013, so that is your ballpark for now.

It is low . Also it looks like some new players in 17n-2e. Some gave .20 royalty. I would not get in a big hurry to lease.

Lanita, I see where you are leased. It will expire in 2015. The first company probably flipped the lease to Reagan for drilling. They may have sent a courtesy letter to inform you of the pending well to see if you want to be a working interest owner and pay part of the well costs. That is a typical form letter. They will force pool the rest of the owners in the section. I just checked the permits and poolings and no well is listed yet and no hearings are listed, so this could take months. Donā€™t sign the letter if you are already leased. You may want to try to get in touch with Reagan. They may be trying to top lease you. Donā€™t do that right now.

Lanita, Sometimes, a company will offer to buy your mineral interest even though it is leased. Beware, companies often use a temporary downturn in oil prices to scare people into selling. M Barnes is right, they may be trying to top lease you also, so donā€™t sign anything you donā€™t 100% understand.

Has Equal Energy finished drilling the Morpheus 1-13H on section 13-14N-4E? If not, how will I know when they finish?

Has Equal Energy finished drilling the Morpheus 1-13H on section 13=13N-4E? If not, how will I know when they finish, or will I?

Brenda

http://imaging.occeweb.com/imaging/OGWellRecords.aspx

is where you can track it. Use a leading zero 1314N04E

The well spud on Aug 12, 2014. Should take about two-three months to drill. The completion report will be Form 1002A

Usually takes a couple of months after they finish to get the completion report. They are backed up at the OCC.

Does anyone know anything about Township 12 North, Range 5 East Section 17

Mrs. Gray, No drilling in 17, but some in 15 and 16. No new leases, some old ones in 2012. No hearings or permits in 17.

I am new to the mineral rights group and am looking for information on activity in the section 31,township 17 North, range 04 east. I have tried to look into it at websites I have found through the Mineral Rights Forum but have found little info. I have learned a bit reading comments and websites listed but am still a novice. Thank you in advance to anyone who has information and replies.

Kevin there is activity in seeking drilling permits and leasing in 17N-4e. In section 32 there is currently a pooling application for section 32 which is the last major paperwork before seeking a drilling permit by American Energy. There is leasing going on in section 31 by Universal Land Services who are leasing for American Energy. If you have not leased yet I would advise you to read all you can on the forum about leasing and ask questions on the forum here so you can attain the best lease you can. If you have leased and just need information on activity there are many informative members on the forum that know how to navigate the Oklaā€¦ Corp. site etc.

I had been contacted by a land man a few months ago. He was trying to lease our property for .1875, 100 acre bonus for a three year lease. We, as a family all declined to lease our mineral rights at that time. The land in question is S/2 S-19, Township 17 N, R2E, Lincoln County. My cousin has received the first of what I'm sure will be mailed to me also letter for relief sought for pooling and horizontal drilling and spacing unit. </font><font style="background-color: transparent;">My understanding of pooling is that we would/could choose the best deal offered in pooling deal within a 9 square mile area around the land in question. From reading the forum not only the % and bonus are important but to make sure the contract has no after expenses placed on after production etc. Where do we stand as owners in that respect at/after pooling? Can we decline to pool? As a family we own 1/2 of the property in question. Any updated </font><font style="background-color: transparent;">,% activity is within the 9 mile area of our property? See my post dated 10 September 2014 Lincoln County. Thanks for your comments!

If you are forced pooled, you can do nothing and become a working interest and pay your proportionate share of all expenses, then receive your share of production. Or, send a letter electing take one of the election options presented to you in the pooling order. Or, you attempt to renegotiate a lease with the operating company or lease to another company or third party, but should get legal advise if you lease after you receive the pooling order. Or, when you receive notice of the pooling you can appear at the pooling hearing and object to the force pooling. Of course, you have to have a good objection and thatā€™s hard. Maybe someone else knows of some other clever things to do, but I donā€™t know of any.

Grant, the general trend in that area is about $125-200 3/16 or $75 1/5. There are not any recent poolings in your 8 spot.

From the most recent NARO ROAR December 2015.

OK Board at work for you:

"It is important to note the discussion from Terry Stowers

concerning the special committee the OCC Commissioners

approved to consider changes to the pooling process for

exploration and development of oil and gas in Oklahoma. Terry

stated the following were being discussed: lease terms in the

order; length of time to elect under the pooling order;

subsequent well provisions; and unit size in other formations

other than the current rules governing the Woodford Shale. Any

proposed rule changes must be voted on by the OCC

Commissioners then approved by the Oklahoma Legislature in

the 2015 regular session."

Lincoln: American Energy - Woodford, LLC; Taylor 32-17N-4E No. 1MH Well; NE1/4 NW1/4 NE1/4 NE1/4 (SL) of 32-17N-04E; 424 barrels oil per day, 517,000 cu-ft gas per day; TD 8,818.