no probate done as they did not think they had much. mom’s friend’s property awarded to mom by court order as the surviving co-owner. the estate tax return had real estate A-1 and mineral rights A-2 outlning the section 9, 18n minerals that mom’s friend must have owned. so, no probate, and no probate from mom as she died in Texas almost a pauper and had a muniment of title, no probate, as she did not have much. I have researched her old paperwork an have run across the documents mentioned and filed all I could as well as an affadavit of heirship in Logan county. Since there is potential you can see why the time invested and attempt to show ownership–the estate tax return is the last of the items needed. If I need an attorney, then so be it. thanks.
The best a person could probably do is to spread out their investment in minerals rather than all their eggs in one basket, sell some of yours and buy some of theirs. Few buying at $2500 per will probably make a return on their investment in the next 10 years which would be a small return versus chance of loss but if you do enough you will probably come out ahead by having a spread that would probably but not always include some good wells. I have seen many purchase minerals at reasonable prices all over and in 20 years never make money, not a very good investment. I have seen too many wells in the Mississippian coming in at less than 20 bopd. So when I see someone telling people they will make 10’s of thousands per acre on their minerals like has been said here I feel as though I should try to bring people down to reality with closer to the truth. More people have gotten rich in real estate than minerals. To tell someone to never sell any minerals is foolish.
I agree this is a Logan County minerals forum.
Virginia, you have mentioned a unit size of 340 acre and i think 440. Are those in Logan County? Seems to me the standard is 640 in Logan County Where are yours?
Alas, I do in fact have 2 Crystal Balls, one my brother bought for me in
San Francisco, it is a 5 inch ball and real crystal. The other is an 8 inch ball and also real crystal from China. I would not sell either of them for all of the oil in Oklahoma, becausae they help me tremendously in my poetry writing.
Having said as much, and it is gospel, I can now prerdict the future of Oil in Oklahoma, since I believe that Oklahoma has so much oil than we are going to be as Saudi citizens who are now all Princes, etc etc. But in all honesty, and NOT kidding, I am very sure there are major improvements for Oklahoma because of our oil and gas underfoot. You just hide and watch, everything is changing, and it has already started.
Ronald,
I don’t think anyone is really a fool. I should not have used that word and I’m really sorry I did.
One thing we have to look at is: we know their is oil down there, but how to bring it up with today tools may still be the problem. Look have far we have came since 1920. In another 20 years everything will be obsolete, time moves on.
Mineral Joe,
I will agree, no one should put everything in one egg basket if they did, then I feel sorry for them. Regarding real estate, I feel it is probably the best, but you can still lose money if you don’t buy right and in the right location. Same is true with minerals, location is the real word here. You can make a good deal or a bad deal. Both have good tax right off if you need them.
Now lets get back to Logan Co wells and what is happening.
I honestly believe that oil production in the USA has been controlled by many elements, and probably by governmental regulation we know little or nothing of. But I also believe that is changing even at this minute, and if we only look at the broad picture, it is pretty evident. Those in the know, realize that Saudi Arabia is not one of our bestest of friends, and their feeling is mutual, I am sure. We, aqs a nation, are preparing for something big. Anyone who does not have emergancy rations in their very own homes needs to take a closer look not only at the oil world in the Mid-east, but China, North Africa and Northern South America. Emergancy prepardness drills are happening all over the USA, and they are no great secret, but like the Drone program, the government would rather we did not know a lot about it. Our oil world is also in on this, is my own belief, and I base it on a whole lot of reserch. My bet is there are more effective drilling units, as well as pumping and flow control units ready at this very minute. Everyone in Oklahoma knows, or should know, the oil is down there. Our need has not yet been sufficient, but is probably staring us in the faces.
Harley,
The standard size is 640 A and most are on that spacing.
I have some location exception on a couple of my farms. One is near a water flood unit. Their are several reasons they can be on exception spacing.
Ours by order # 136545 was originally 40 acre, then Ozark requested a 640 acre and I guess it was okayed by the court.
I thought I had read every posting here for 4 months, but I must have missed the one(s) saying anyone would make tens of thousands (of what? dollars or barrels a day???) I guess I might be willing to add to this line of intelligence in wondering if I am the only fool here? Sometimes I think I know exactly what Benjamin Franklin felt like. Sometimes. Other times I feel like a fool.
Horiz wells seem to be very vague right now, we really do not have enough data to really understand it all. For example, in Woods County, just 3 counties NW of us, Carol Well, I think that is its name, is doing 1150 bpd, but a nearby well is only doing 128 bbd. 1150 is not bad, and I think one in Alfalfa county came in at the same bbd. For Osage and Slawson both to be teamed up in at least 1 I am interested in looks very positive for the future of Logan to me. Who knows? Deepwater Horizon drilled down 35,000 feet in the Gulf, what do you suppose is 35,000 feet under Crescent?
Robert. Oh wow. Confusion. If you go to the top of this page, click on Mineral Help, then in the pull down menu, click mineral terms I think it is, then click the tab for the letter “O” then scroll a little down, half a page maybe, I will look, then you will find a link to OVERRIDING ROYALTY INTEREST. But I still do not know what it means, maybe your can figure it out better than I and then you can tell me? Or I bet Virginia can tell us. One thing it says, is “overriding royalty interest does not affect mineral owners.” That waws enough for me at the time, but now I am curious, too.
Now, what is going on in Venezuela? This could be good for us here in Oklahoma, or it could be not so good. But it will definitely affect us in a pretty big way.
From what I understand, an ORRI gives you a share of production without paying any of the operating cost. The ORRI expires once production is stopped and the lease expires. I am wondering how someone gets an ORRI?
One way to use an ORRI would be if I leased from you and gave you 3/16th and assigned the lease to someone else and kept a 1/16 th ORRI interest for myself for a total RI of 1/4th.
Robert,
ORRI is when someone has an interest in a well and do not want any expense of development, operation or maintenance of the well. The ORRI gets a % of gross revenue from the well, but once the well stops producing his interest stops or if the lease expires.
Lets say, I have a lease on 160 Acres which I purchases for $100 per A = $16,000. Now the spacing is 640 A and you have the other 480 A and want to drill a well, but I’m not willing to put any money into development, etc. Cost of the well is $500,000 plus operation of $250,000 = $750,000 your investment. So, we work out an ORRI with each other, maybe I would get 2.5%. You drill the well & operated it, I get a % of gross production, so I only had upfront money in it, maybe just a lease. Also, sometimes a person get a partner that doesn’t have enough money to keep his W I, so you take the well over and give him small ORRI. That is one reason you have to fill out a lot of paper work nowadays to invest in wells. Lots of people think it’s all profit and it’s not.
I’m sure someone else can explain it better than I can.
These figures are only for example and do not reflect any real cost.
Ok, I love the WHAT IF principal, it has served me very well in life. So, WHAT IF the well is drilled and put ino production, at 500 bbd at first, then it goes down steadily until the boss man comes in and says we gonna shut this well down next week cause its not worth it. Well, what if, there is an earthquake in California, and it rumbles through Oklahoma and our low producing well, but it also affects the fracks much the same way the sink hole in Florida last week. There is this huge pool of crude, and all at once it starts gushing through the frack veins, and becomes the best producing well in the state. Is something like this possible? I think it is. The Lord works in mysterious ways.
Sounds like the credit business, which I have had experience in, say Panhandle Bank issues me a credit card and rocks along making money off of me, then along comes Capitol One and buys the account from Panhandle, so Pan handle makes money, then I default on Cap One and they sing the blues. Then it goes to a collection company who calls me all kind of dirty names until I pay up…LOL
I did, db.
What is an overriding royalty interest and how are they assigned?
Ron McKenzie has giving a better example of what takes place.
I will add this. Some land men purchases a lease at a low price hoping to make a profit, but sometimes they only end up with an ORRI.