Property: 8-T20N-R6W. Has been leased since 2008. As of yet, have no idea whether or not any activity is going on in the vicinity. I inherited the property (very small, one quarter of an acre I believe) and share it with my sister and two cousins. None of us can do anything with the property without the consent of the other three.
I have been receiving unsolicited offers to buy my mineral rights on a fairly regular basis lately from a company that I cannot even identify; Wake Energy, LLC. I do not have any intention to sell considering the very small amount they are offering ($1850.00 per acre), and due to the fact that I have no idea whether or not activity is taking place. I reside in Richland, Washington; my sister and cousins in Minneapolis, Minnesota.
It is a parcel of land that is part of a larger parcel that has been in my father's family for many years. I remember as a little girl, my father getting some small royalty from land in OK, but not sure if this is the actual parcel. From my understanding, the company that leased the land needs to drill quite deep and it is looking for both oil and gas.
I guess I did not really expect anything big to come of this in the beginning, so I did not do much except accept the lease in 2008, and again in 2011. The company is paying each of us 238.00 for a three year lease, with a 3/16th royalty once anything is produced. I figured if I was going to get lucky that was a good thing - did not really count on anything happening.
How can I find out if anything is happening in the area of my property? Any info would be appreciated. I am new to this, and totally in the dark.
Don't sell until we find out more about Wake Energy LLC. Usually someone wanting to buy means they think your minerals have potential. Soetimes it means your minerals have potential right away as that person may ahve an inside source who knows a drilling rig is coming soon.
Thanks Matthew! My feeling exactly. I know that the company that is leasing the land has decided they need to drill around 10,000 feet; and they are looking for both oil and gas. I was surprised that they even found the four of us back in 2008. Thought that the land would basically sit there forever, as not much ever came from it while my father was alive (from what my father said, there was a working well on the land for a time, but it was not allowed to produce. Do companies really do that?). I appreciate you responding to me!
I did not find anything out about Wake Energy LLC other than they were created early this year and have bought minerals in a lot of areas.
Sounds like you got to lease in 2008 and again in 2011 so two rounds of bonus money is a good thing.
Yes, once a well is in "production" (capable of producing in paying quantities) then companies dial back the production to be just a drip if the well is not a gangbuster well. It depends on the company and their needs and the production in the area.
The key is having the well in "production" holds the lease and prevents any other companies from drilling that section.
Thank you for the information. So if I am understand you correctly, releasing is a good thing. The company on my lease is R.D. Davis & Associates, Inc. out of Oklahoma City. Are you familiar with this company? As I look at my lease, I am now not sure of the size of the parcel. The parcel I listed in my first note is from the company seeking to buy my rights and the description is slightly different than the one on my lease. I am going by the size of it as stated to me by my cousin. Don't think he knows much about this either! My lease states: "Township 20 North, Range 6 West, I.M., Section 8: NW/4, containing 160.00 gross acres, more or less." I am such a newbie here! Like I said, I never expected anything to come of this property - I have never gotten anything free in my life, so I am not holding my breath. Thank you for the information though, I truly do appreciate the time and effort you have given me.
Selling always depends on the person or person needs. The price they offered seems fair to high. Running the numbers in my head (always room for error and Im sure someone on here will be overly excited to correct me) it would take over 75K BO out of a well on that land for the buyers to break even at that price. Thats assuming a constant average of 80 dollar oil for the life of the 75K BO and that the one acre is leased at 3/16th. Thats also assuming a well gets drilled. Selling in my opinion is similar to a hedge on your minerals. I own minerals and usually sell a piece if the offer makes sense. What makes sense for some doesnt always for others. Hope that helps!
No new production that I see in public source information. You are in a highly drilled area. All vertical producers. It will take awhile before the horizontal "craze" will try drilling in your section BUT, most likely, the land companies have been told to buy acreage within a specific area & it sounds like you are in that area. You can always wait for the pooling offers when a well is proposed which will represent the averages of offset leases..Average, not high or low. so go for the best deal for you if you have never been average. Lease cash & a long wait for royalty revenue with possible release in the 3 yr future or, sell out..I never like the sell out part.
It's good you don't have a large interest or are in need of a sale.
Thanks Nick! I was thinking something must be going on. I was intending to hold onto my rights. Had a feeling that at some time in the future we would strike either oil or gas. I appreciate your help!
Just got more information regarding the land NW/4 of Section 8, Township 20 North Range 6 West. The Oil and Gas Company is Longfellow Energy. The land management company is Hill Land Management, Inc. in Edmond, OK. Layton Hill III is the owner of the land management and he told me that they are intending to drill horizontally as it will access more oil or gas. Lease is standard 3/16th royalty and the actual acreage is 2.8572 acres. Not a lot, bur more than I was originally told about. Hope they start soon and actually hit something of value. It would be a nice plus in life. LOL If anyone on the forum is familiar with these two companies, please let me know. Thanks!!!