Just received a Relief Sought Application for a Multiunit Horizontal Well that would be placed on the property I have mineral rights.
What is a Multiunit well and what are its capabilities?
Soon after the application I received an offer of $5600 per acre for the rights. Sounds like something good may be about to happen.
Any insight would be appreciated.
Kirk, we have signed a number of allocation agreements in the past.
We refused to sign the last one we got from Sabine because they wanted us to send in only the last notarized page of the agreement and with the way they are "playing" with expense and transportation costs, we did not sign it.
However, allocation units seem to be popular right now. Most of the ones we have signed are for two units. Your interest is diluted because your interest is about 50% of what it was in the original one unit, but it is worth it to be in a well.
Of course, I am no expert in the language that needs to be included, but others here on the forum can help you with that.
Good luck, Kathy
Kirk,,
Just now read your posting. I am really impressed at your offering of $5600.00 net mineral acres. And I thought my receipt of Lease Bonus money at $1100.00 bucks per net mineral acre was good. Wow! It really does
look like something good is about to happen. The FORUM has been great for this novice, I Leta. There have been several knowledgeable Landmen, and mineral owners who have patiently answered my many questions. I went into this mineral game.....cold......knew nothing so I know you will get help for your questions. My minerals are in Hughes County, Ok. Keep all of us posted..........Leta C.
Before you get too excited, maybe you ought to find out, exactly, what there is to be excited about. Like one ole O&G attorney told me one day "all these people do is get excited when they see the dollar sign and then they go and sign their life away." That is one powerful comment.
Know what it is you're signing.
Good luck,
Pat
Kirk, a Multiunit Horizontal Well is described in the Oklahoma Corporation Commission publication "Basic Information for the Oklahoma Royalty Owner". The link is http://www.occeweb.com/og/PubAsst/WebRoyaltyOwnersHandbook3-2015.pdf
Following is the first paragraph of the discussion found on pages 18 and 19 - "The Shale Reservoir Development Act of 2011 provides for the creation of a new type of unit for the development of shale formations, a "Horizontal Well Unitization” and also allows a horizontal well to be drilled across unit boundaries in two or more existing units, a “Multiunit Horizontal Well.”