Is the application that James Booth references for sections 21 and 28 for one well or three? And if three, are they required to drill if successful or can they just sit on these? I am receiving a lot of requests to purchase my mineral rights and since I am in Oregon, I am wondering what options I have. Thanks to this forum!
Good morning! Can you provide some additional information, including the Township and Range for those Sections? Is James Booth a well name?
If you are receiving a lot of offers, my suggestion would be to ask the questions you are above. What is the current production? I am owed any royalties? Is there going to be a new well drilled soon? All those of questions would make a big difference if you want to sell or when you might want to sell.
It is the same as where the Indultado well is located. 21-6n-4w and 28-6n-4w. James Booth is the name of the poster before me. He was asking about his existing lease. The Indultado well is a producing well. The map showing the location of the proposed wells shows 3 new locations.
Casillas also has a pending case in 21 & 28-6N-4W for a horizontal well. Hearings are in early January if scheduled. I have acreage nearby and have had multiple requests to buy. I hang on when there are that many requests. They are planning to drill the infill wells for the rest of the section. Whether they choose to do so is another matter.
Your options are to sell all, sell part, sell none. Oil prices are rather depressed right now, so companies that buy are hoping to pick up acreage for low prices and keep for the royalties when the wells are drilled and hopefully are produced at higher prices. Or they will flip the acreage to someone else who wants it for a similar reason.
Personally, I would rather keep my acreage that is already producing and get the royalties from the additional wells. However, some families need the sale money for important things like medical bills. Always negotiate for higher than the first offer if you choose to sell. Keep in mind, you may have capital gains tax if you sell.
If you decide to sell, NEVER hand over a deed without having the check clear the bank. A third party can hold it for you until the money arrives, then they turn it over to the buyer. Attorney or accountant, for example.
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Thank you for that information and advise. Whether it is Casillas or Ovintiv Mid-Continent that wins out… if the application is granted, do they have to drill or can they postpone indefinitely. Ovintiv proposes to drill 3 infill wells I think.
I probably will not sell. However, I would assume that the offers to purchase should go up significantly if the Application is granted. Right?
Thanks again!!
They do not have to drill. Either company. But there is usually a timeline, so not indefinitely. They usually don’t go to the expense of filing if they don’t plan on doing something. Sometimes, operators do pull out under extenuating circumstances. Both companies are experienced. Ovintiv may have deeper pockets since they are planning three wells.
Offers may (or may not) go up if the orders are granted. Offers tend to follow the price of the oil & gas products. Rig counts are slowly going up and the best acreage will get drilled first as we come out of the pandemic and companies see their way to economic returns.
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