I inherited mineral rights in Kingfisher county from my mother a few years ago and I don’t really understand any of it. I’m not even sure who has the lease right now. It is just 1/16 of an acre as far as I know. in section 4-19N-9W. I get offers to buy my mineral rights in the mail all the time. not sure what to do?
There is horizontal drilling all around you. That is why you are getting offers to buy. You should ask the guys who are offering how many acres they think you have and what is the description. There is a producing well (small) in section 4. Are you getting any royalties? Chisholm just filed for a horizontal well in section 5, so if I were you, I would hold on for a while and see what happens. Any offers now are probably pretty low to actual value in my opinion, based upon my experience. I have acreage fairly close to you and I am getting offers all the time. Clue that something is about to happen.
Thank you very much for your reply. As far as I know I only own 1/16 of an acre , with the rest of it being spread out between other family members. I live in Illinois and had never even heard of mineral rights before this happened, lol. I believe Alta Mesa holds the lease at this time but not 100% sure of that. I got the letter from Chisholm oil and gas about a test well? or something like that but haven’t done anything with it. I’ve never gotten any royalty checks from anyone , just a small payment for the lease. Like I said I really don’t know anything about this and owning just 1/16 of an acre i doubt it will ever yield much for me but I’m still interested to see where this goes in the future. I’ve thought about hiring a lawyer to explain all this to me and help me keep track but I’m not sure if it’s even worth it. I guess you could just say I’m confused about the whole thing, lol.
You don’t need a lawyer. Just read all you can on this sight & you will gain enough knowledge to get you through.
Todd M. Baker
I received 3 separate letters from Barnes law out of Tulsa today. They look like maybe some type of legal documents or something. Not sure what they are or what to do?
Please list the section, township and range. Read them and they will explain what to do. Unless they are for a pooling, you do not have to do anything. They are for informational purposes only. If a pooling, then pay close attention to what they say as their is a hard time deadline on them.
We must be distantly related eightbraker. We received them as well. They are from Barnes Law for Chisholm regarding amended applications.
I’ll look them over and see what I can figure out.
One of the letters from Barnes Law for Chisholm is notice of an amended application by Chisholm regarding the O&G lease/s they own in Section 4, Township 19 North, Range 9 West in Kingfisher county.
They are seeking an exception to OAC 165:5-7-6(h) which is about drilling and spacing. They want the commission to enter an order giving them exception to the rule of 50% acceptance without the consent of 2 other well owners in this section, Singer Oil and Kenny Choate (dba Rebound Oil) There are 8 pages listing 134 people, Trustees, Corps, LLCs, etc, many of whom I recognize as relatives, close and afar, who I assume all received the same 3 notices.
The next letter is another application similar to the above.
Another of the letters is an application for extension of a previous order regardingSection 8, Township 19 North, Range 9 West in Kingfisher Co to include 4-19N-9W. It also asks to vacate 3 other orders in 4-19N-9W. It again mentions Singer Oil, Kenny Choate and the 130+ other respondents.
It is also notice of a hearing regarding all this on 12/31/18 @ 8:30 AM.
You don’t have to do anything regarding the hearings. Those are just administrative filings that our OCC requires before drilling.
Todd M. Baker
I just wanted to add my membership to this community and give you many thanks for all the great knowledge I’ve received here!
I have 160 acres in Kingfisher co, in section 14-T18-6W (south half of north half) which I’d inherited from my co-owner aunt and father who both have since passed. Like other’s who’ve posted, I started getting offers coming in since last year, around April 2017. From my research, there’s 2 original wells which were leased by Texaco back in 1953, and continued production, although since about last year before horizontal well production, probably producing enough monthly production oil to replace what’s in my pickup’s engine
Before reading on this forum, I had no idea about layer formations, the science behind horizontal drilling, or pretty much anything oil related. I’m glad I didn’t take the bait on anyone’s offer, but I’m patient and debt free, so wasn’t desperate for funds.
Now I’ve just received a legal document from a company called Oklahoma Energy Acquisitions, LP (Alta Mesa Holding, I believe?), regarding establishment request (relieve sought) for a drilling/spacing unit for Mississippian, Woodford and Hunton commons sources of supply. Should be interesting to see what this turns out to be.
Being somewhat of a geek, I put together a spreadsheet so I can keep track of production, and the breakdown. Maybe you can correct me, but I also understand I cannot change an original lease agreement (1/8) as long as there’s production, and didn’t have any wording as to expiration of the agreement.
Sorry, a bit long winded, but I wanted to thank you, and the other experts here for giving me all the knowledge. I just decided to do lots of reading first, then start posting questions here.
Welcome to the forum. Yes, you are correct. You cannot change an old lease as long as the terms of that lease are still in place. As you have production from the original wells, you are held until all oil and gas production ceases. Not likely to happen in the near future since you have horizontal production now. You have the Earl 14-18-6 4HC, Earl 14-18-6 3H, Earl 14-18-6 2H and the Earl 14-18-6 1H. Chesapeake had those wells.
Read up on the investor presentations on Chesapeake, Roan Resources and Alta Mesa. They will have some very interesting maps and diagrams.
From what I’ve read from other posts, this section can support more wells in the future if I’ve read correctly, and with the newer drilling technology, I’m not complaining about the lease. I just figure I’m blessed to have something which produces passive income.
Yes, if you look at a map of the wells, there appears to be room for more wells. Depends upon the reservoir and the optimal spacing.
Interesting reading on those investor sites. Putting 2 + 2 together, I can get an idea why I got the interest of Oklahoma Energy Acquisitions/Alta Mesa. I see Alta Mesa’s subsidiary - Kingfisher Midstream, LLC is due for completion of the Cimmaron Express pipeline from Kingfisher county to Cushing sometime mid 2019. That Kingfisher Midstream storage facility being where the point of delivery is just about 2.5 miles from my property!
Who knows what the price of oil will do in the future, but keeping transportation costs down must be huge in the overall scheme of things. Looks like that pipeline will be a nice incentive for future development in that region.
FYI Mike - We have interests in several sections with old vertical wells, recently Alta Mesa has drilled 4 horizontal wells in one of the sections (no completion reports yet) with 3 more proposed and we’ve just been notified that they plan to drill more in another of our sections. Alta Mesa (OEA) are very active in Kingfisher although (to date) they haven’t brought in any big wells. They have been pretty good about answering questions promptly via email unlike some of the other companies that very seldom reply and are usually very slow if they reply at all.
Yes, Chesapeake was a little slow to respond to a percentage breakdown question and another one I had, but to their credit, they called me back a couple weeks after I called one of the customer service reps who said he’d forward my questions to the people who could give answers.
I’m not one to bother people with trivial stuff, and I’ll search online or on this forum before I call anyone with questions. Funny, I’ve actually read and tried to decipher all those legal notices you get before they get approved for the drilling, so I’ve learned how to decode that stuff pretty good! That and getting a handle on the terminology.
Our track is 14-15N-06W. Looks like they had a hearing on Monday with Oklahoma Energy Acquisitions for the location two horizontal wells. I wonder when we will hear anything.
They will mail you the orders if the hearing is actually held. Usually takes a few days. You can follow it on the docket tab of the OCC. Use your case numbers from your paperwork. They often postpone, so you can find out the new date here. http://www.occeweb.com/ap/docket_results.html
They may not have had the hearing at all, just bumped it forward to the handwritten date.