I have a few acres in 9-17N-12W. I heard that Triumph is drilling a well, and they sent me a pooling order to elect an option. I elected an option, then they sent me a lease agreement which I have not yet signed. Now another company wants to lease my acres. Can I choose to lease to someone else? If I previously chose an option with Triumph, and I did not sign a lease, is it too late to switch my choice to that of participation in the well? Thanks.
If you have not signed a lease, you are free to lease with anyone. The most important thing is to get a good lease with no post production charges, no enhanced value, no charges at all. Triumph's pooling request was dismissed in May. They do have a location exception approved though. So time is probably getting short.
Thank you M Barnes. As you mentioned, I learned today that the first pooling notice was contested so my election did not matter. So I will be quickly working with another company to finalize a good lease as you recommend.
Hi Stephen George, I am also a mineral owner in this section. Do you have two separate leases for this section? I recently have seen two separate well names for 9-17N-12W. Payne Heirs Unit 1-9 & the Donna M. Would you friend me back for further discussion? Thank you.
I live in this area. To the best of my knowledge there is only 1 well on that section drilled recently, unless there are two holes on the same location. I would like to think I would have noticed that but... Now I'll have to drive by there and look.
Donna M is the new horizontal well. Payne Heirs and some other wells are older wells.
I am seeing two different formation names. On the Payne Heirs, Morrow with 86503 Spacing Order & 640 Lease Acreage. On the Donna M, Missan (EX Chester, Spacing 66160 on 640 Lease Acreage. Can they switch?
Hi Donna, Do you know the name of the older wells beside the Payne Heirs?
J, I only have one lease and I only came into possession of a few acres about 1.5 years ago. I did not know about the Payne Heirs well until about 2 weeks ago. I don't know if it is producing or if I am entitled to proceeds from Payne Heirs. I leased to Shadow Creek Resources just recently and I believe they will participate with Triumph in the new horizontal well. I don't know what my status is regarding the Payne Heirs well.
You will only get royalties from a well if your minerals are within the spacing unit of the well. For example, if your description is in the NW4 of the section, but the well is spaced at 160 acres and is in the SE4 of the section, then you will not get royalties.
From your statement that you just leased with Shadow Creek, that makes me think that you will not get the royalties from the Payne Heirs well because if you were entitled to those royalties, you would have been Held By Production and unable to lease.
The Donna M well is spaced at 640 acres, so all minerals in the section will receive royalties from the well. The Payne well is an older vertical well with probably a smaller spacing, so not everyone gets the royalties.
There are several older wells in the section.
Payne Heirs Unit 1-9 Watonga Chickasha Trend Morrow C NE4 NE4 SW4 First production 1999 last production March 2017 (latest posting on the OK tax site) API 35-011-20151 Completion in the Morrow at 5 bbls oil and 624 mcf gas. This is the one that is barely still on line. You wouldn't get much if you are entitled.
Payne Trust 1-9 S2 N2 S2 SW4 permitted for Chester Morrow Atoka RedFork Oswego Bit Lime Cottage Grove and Tonkawa zones API 35-011-22933. It only had 5 mcf per day at completion, so terrible well. Pretty much a dry hole.
Thank you for the details.
Thank you M Barnes for information.
J M: What do you mean by "can they switch"? The Morrow formation is vertically above the
Mississippian. When you see "EX Chester", it means all the Mississippian formation, less the
Chester, which is part of the Mississippian, as is the Meremac & Osage.
Todd M. Baker