Hi, I am Interested in information regarding offers in Section 22-9N-4W. My mother has mineral rights on 40 A. I’m hoping to help her with a lease. Thanks.
How do I get help negotiating the best lease?
Mr. Smith,
I think you can ask others for recommendations of attorneys in the area that would negotiate for you. I handled lease negotiations for our family LLC after we inherited them in 2015. I probably didn’t get the best lease but we’re happy with it. My approach was to go through the comments and suggestions on this website and to pay particular attention to a few members who seemed to be experienced. I also looked at lots of leases available online for a small subscription cost. If you will send me a friend request, I’m happy to share more.
On operator contacted us to dispose of drilling mud. I would appreciate tips on what to watch for in the contract, going rate, pros and cons, and what has to be in the contract. A portion of the mud is oil-based, the majority is water-based.
Murelene, did your original lease run out yet? I assume it was 3 years. If so, then Dudley has plenty of time to exercise its option. The good news is that if you are getting a lot of offers there could be some drilling in your future.
Good Morning. I have a small piece of mineral rights in 33-5N-3W that I would like to lease. Does anyone know of anyone leasing in the area?
I hope that someone can shine some light on a question. My family owns a number of interests in wells that were drilled back in the 80’s. Most of these wells are in very prolific areas in McClain and Garvin County but were vertical wells and only bring in pennies a month. Why would a company go out and open new areas with horizontal wells rather than drill new horizontal wells in areas that are already shown to be productive. It seems cheaper to drill in areas that are HBP with old 1/8 leases.
Thanks for the information M. Barnes!
Kirk, those old wells were in conventional reservoirs of sandstone and limestone. They have good porosity (fluid storage in tiny holes) and permeability (the drainage connectors between the holes which allows the fluids to flow from pore to pore-think barbells with the bulbs on the ends and the handle inbetween). Those reservoirs have a particular type of drainage pattern to each. The wells were spaced to take advantage of that fluid flow in an effort to drain the reservoirs. In many cases, the pressure has been reduced due to production and the zones are drained fairly effectively. There is always residual hydrocarbons left behind, the reasons why I can save for another day.
Most of the current horizontal drilling is in the source rock shales (very low porosity and permeability) which have a completely different ability to drain which require the newer technology hydraulic fracturing. (Many, if not most of the vertical wells were also hydraulically fractured in a slightly different style). These new wells are going deeper and in between the earlier reservoirs.
In some cases, there are some horizontal wells in the same reservoirs as before, but usually in the tighter, lower porosity and permeability zones that could not be drained conventionally.
Kirk, Criner Land Services, Rolling Thunderbolt LLC, Red Rocks Oil and Gas Operating, Patriots Field Services and Maoli are in your general 5N-3W area over the last 24 months.
I did talk to Okie Energy and they were not interested in sec 33. I did get great leases from them for my other sections though.
Can anyone comment on an offer from Okie Energy - Sec 15 -6N-4W?
$1,500 per at 1/8, $1,125 per at 3/16. Landman says pooling is happening soon here?
Thanks to anyone who can shed light. - Judi Lapin
Cheryl/Ed - I figured such. Can anyone suggest what I can anticipate
at 3/16? Have 3.375 acres.
Judi,
I leased with them at $4000 per at 1/5. There offer for 3/16 was $4500. In section 25 earlier in June of this year.
Judi,
That offer is very low.
Ed
Joyce,
Yes, the well name is Whetstone. Active date 9/01/2017 from the gross production site. Won’t know anything about production for awhile from what I understand.
Sandra,
Are you talking about 25 in 6N4W? If so, wasn’t there a well drilled there this year? Any news on it?
Thanks Sandra. I’m watching that one as I have minerals in the next section. Anxious to see what it produces. I leased for 1/5 and $1,000 per acre in April 2016. You did much better. What a difference a year makes!
Murelene, Yes, it means they have the option of leasing at the same price for an additional 2 years. Your situation is exactly why a two year extension is often not in the mineral owners favor.