Logan: Stephens Production Co., McPhail No. 1-31H Well, NW/4 NW/4 NE/4 NE/4 (SL) of 31-17N-03W, 539 BOPD, 622 MCFPD, TD 10,475 feet.
Read more from this Tulsa World article at http://www.tulsaworld.com/business/article.aspx?subjectid=501&a…
Nice Well!
Sorry, about the “pulling out and going north comment” on Nov. 30th. Some prankster (thinking they’re cute) added their 2-cents worth because, I didn’t close the browser!!
Kaye,
One reason they aren’t drilling a lot is because of the shortage of water. It’s so dry, ponds are dried up and cities are getting scare to sell water.
So, some of the drilling companies may have moved on, but they will be back. So, don’t worry, you will still get a good well.
Virginia, Thanks, I sure hope so!
Tricia, I hope it wasn’t too much money you lost by not leasing, if you’d have leased then you wouldn’t have had long and you could have gotten more bonus money again.
Tricia,
That is way to cheap. Most of the leases have been going for $200 to $800 depending how close they were drilling. $100 is 1970 price and if you lease for that you should get at least 1/5.
Virginia,That is why we didn’t lease 2 yrs ago. I was just wondering if anyone has heard of any activity of leasing in this area and if so how much they are going for now. I think it was $100 per acre and 3/16.
Ms. Branson, missing a lease cycle isn’t the worst thing that can happen. Like a bad marriage a bad lease would leave you wondering why you ever did it. $100 could be good, ok or bad depending on the royalty offered and the clauses in the lease. I have mineral acres I would lease for $0 that I know will have good production but I wouldn’t settle for less than 25% royalty on them either, with $0 bonus. I wouldn’t take 5% to 6.25% less royalty for $100 either. I wouldn’t want to lease to Chesapeake at any price and that is something I wouldn’t have known 2 years ago. I think if you have learned anything in the last couple years and the result is a better lease, you didn’t lose anything at all.
Tricia,
R. W. is right, it’s better to have a good lease, then a big bonus. I like to wait till they start drilling near me, then when some one calls the price just goes up. If they hit a good well by you, they will be coming to lease. I think oil companies are trying to figure out what the government is going to do. We just have to much government control to know what to do in any business right now. Are we going to fall off the cliff or not, what are prices going to do, etc? I’m not investing in anything right now because to much is changing and I know several of my friends are the same way right now. Why should a person kill themself working? only to pay more taxes???
Also, if Oklahoma get several good rains and it fills the ponds, I think you will see drilling pick up and they will be back to lease.
Got a rain but need a lot more.
The greedy ones are those that jump at bonus money. The leases I have signed for grreedy oil companies were after at least a year and sometimes 2 years or more of them hounding me to sign a lease for them. From what I have heard, Ron is correct, that if pooled, the operator has to state which formation they are going after and producing. My advice is don’t be greedy and jump at bonus money. The bonus money is about 1% of what they expect to make off your minerals or less. How big of a hurry are you in to sell 100% of what you own and 81% of it’s value for 1%? I know people who took Chesapeake birds in the hand and they are worth the bird toenails or a couple of feathers with lice. Some of these birds in the hand will make you want to wash your hands throughly, unless you are one of those happy go lucky people who think your mineral rights are free money falling from the sky and are happy to get whatever they give you for real actual property that they are going to remove and sell that will not return in your lifetime or many generations thereafter. If there is enough oil there to be worth going after, someone will be back to get it. I am not greedy, my descendants can cash in on it.
My husband and I have minerals in 33-18N-3W. We were contacted 2 yrs to lease our minerals but we didn’t lease with them. We haven’t been contacted again by anyone since. Is there anyone buying leases in our area? I know that Devon has leased the minerals around us.
Thanks
Tricia
Their should be a lots of leases that are about to expire in the next few months, so they will either have to do a lot of drilling or pay a bonus under the extension clauses or the leases will expire.
I leased in a tract a few years ago, lease was as good as any with all the clauses and 3/16ths, my friend held out. I just got paid again to extend my lease, my friend has yet to get a dime because he didn’t lease. I also did a lease where everyone held out, I got paid $500 per acre and the company moved on and decided they were no longer interested and I was the only one who made a dime. Lease bonus can go higher but too many times people hold out and get nothing or pooled with no clauses like depth and it cost them dearly.
Virginia, we got a little rain but it is so dry around here. We live really close to the Skeleton Creek/Cimarron River
Joe when you are pooled the pooling is only good for the formations pooled. They can not hold the deeper formation with a pooling.
Thanks Virginia! I am praying for rain not just for drilling but for all the farmers/ranchers.
Tricia,
Do you live in the area? If so, did you get rain? Or is there anyone in the area that can report on the rain? I know I have lots of ponds dry or almost dry and some are 26 + feet deep, so it’s real dry.
I’m sure we will see more drilling this winter if it rains. The motors on the drilling rigs run much cooler in the winter and therefore can drill a little faster. At least that is the way it used to be. Now they use such big motors it may not matter.
Mineral Joe, the lease was for $100 an acre which we thought was very low.
Thanks Mr Kennedy, you are very right. Maybe one day someone will come along with a better offer. We haven’t gotten any more offers since that one so I don’t know. We will just have to see what happens! At least we are not stuck in a contract with little pay!