My mineral rights are in Sec6, T9N-R8W Lots 4&5. United Oil has been paying royalties for years in that section but decided to shut the well down in 2023. My grandfather owned this royalty, so I am guessing this is an old well. How long does United Oil have to start the well back up to keep the lease. Is there any market for mineral rights that have a non-producing oil well on it. Thanks
You have two questions. The first is how long does United Oil have to start the well back up. Kind of depends. If the well was shut-in because gas couldn’t be sold, then a long time. However, this appears to be more of an abandonment of the well. Just guessing.
The second question is there any market for nonproducing minerals? The answer is yes. Grady County is an active county and mineral owners will always buy in Grady.
Horn 1 had first production 6/1/1975 and produced for 544 months until 7/1/2023. A really nice well at 13.676 BCF. The lease has expired under its own terms as the well is finished. The original lease may have had an extension clause for something like 90 or 180 days, but it is two years later and I see no permits or any other wells in the section.
There are horizontal wells in the eastern part of township in another reservoir. Planeview has been leasing in sec 7 to the south, so something might be coming.