New to forum. Just received an offer today to lease in Section 21-T3N-R9E in Coal County. Does anyone know of any activity in this section or nearby sections? Any OCC forced pooling activity here? Thanks in advance.
Welcome to the forum!
Command Energy has a permit in section 27 to 5900’. They have done most of the recent leasing in 21, 22 and 27. HIghest filed was 1/5th. Pooling is pending in sec 27. The coming order will give a good ballpark for what is to be expected in 21.
M_Barnes: Thank you for the reply. Do you have the pooling number for Section 27? How is the best way to canvas an area that you aren’t that familiar with (like the RRC GIS map in Texas)? Isn’t there a link to the OCC to view the pooling and the drilling permits? Not familiar with the geology here, but found the Command Energy Big Feller #1-27 permit you mentioned in Sec 27 & it listed the Bromide @ 5,000’. Saw an offset in the NM/4 of my Section 21 that listed the Gilcrease @ 2,250’ & Wapanucka @ 3,100’. Any other zones productive in this area? Offer to lease was from Command Energy through a lease broker. Options listed for 3 year lease are 1/8 RI & $135/nma; 1/6 RI & $115/nma; 3/16 RI & $100/nma; and 1/5 RI & $0/nma. This agrees with the highest you saw of 1/5 RI. So is it better to try to negotiate a better 3 year lease or wait for the pooling? Also, how does pooling work if there is a possibility of multiple zones? Do all the different zones have different spacing, thus different pooling? New to Oklahoma leasing, but have some idea about it. Most of my experience is in Texas and these offer numbers seem sort of low. Thanks.
Here my GO TO places to check for information. "Pending OCC cases at the following link: https://case.occ.ok.gov/ords/f?p=1003:202 cases before Mar 25, 2022
https://oklahoma.gov/occ/court-dockets/electronic-case-filing.html Actual cases if you have the case numbers: You may need an extra dash and 0 Ex, 2022-000001. The old cases are 202100001
http://imaging.occeweb.com/imaging/OAP.aspx
Docket proceedings: http://www.occeweb.com/ap/docket_results.html
Well activity: http://imaging.occeweb.com/imaging/OGWellRecords.aspx
Production: https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php Deeds, probates, etc. -www.okcountyrecords.com "
Most of us prefer the highest royalty that is offered as it far outweighs the bonus in the long run if the well is successful and especially if more than one well.
Most standard draft leases are all in the lessee’s favor and not the mineral owner’s, so get an attorney to look over the lease and recommend changes. Draft leases leave a lot of good clauses out.
Poolings in OK are preferred by many of us as they are essentially a six month or one year time frame and are limited by reservoir. You can actually pool at several levels in a section. Different zones may have different spacings. The corporation commission has some nice mineral owner documents. https://oklahoma.gov/occ/divisions/oil-gas/publications.html
This part of OK does not have as many reservoirs as many of the prolific areas of Texas. Competition has leasing bonus rates lower this year. Coal is not in the super sweet spot, hence lower offers.
One of the case number for pooling 27 is 2022-003434 (NE4) and it was filed on 8/23/22. It is still pending, so no orders yet. The other case number is 2022-002514 (NW4)
M_Barnes: You are so helpful…thank you very much for the Case Numbers! Not sure which link to use to read about pooling cases. Thought I tried all of the various links you provided, but couldn’t find anything on these two cases. Lost & confused.
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