Oil and Gas Leasing competition

Within the past two weeks I received two solicitation letters on Stephens County Section 17-3S-4W wanting to lease minerals I own in Stephens County. One offer was better than the other so I contacted that company to see if I could get a Pugh Clause and one other Exhibit added to the lease. Keeping in mind I just received these letters, the one company I contacted said the property in question had already gone to pooling. I have received no such notification of pooling. This seems odd given the short timeframe of receipt of the offers vs being told the property had gone to pooling.

Coincidentally, the second company with the lesser offer informed me that no other company was taking leases in this area except them. All seems a little strange.

17-3S-4W has had quite a few leases filed in the last few months. All were filed by RD Williams as of this date. I have searched the OCC cases and do not see any cases for that section as of today.

Thank you, Martha! My holdings are in 17 1S 4W and 16 1 S 4 W….do you know anything about those?

I own some in Section 20 and Section 21. Just below yours. Cheyenne Petroleum set up their rig right against the south edge of your Section 17 and drilled south into my Section 20. My understanding is that they have the leases of both sections and will drill both over time. They drilled over into my Section 20 and fracked and began producing back in 2019. They stopped production a few months ago and are drilling and fracking 3 more wells. In a few months from now I will start receiving payments from them for the new ones.

As far as your Section 17, they will eventually start drilling over your way and be doing the same way they did mine. If you are interested, I can send you some info about their plans.

With respect to your Section 16, my Section 21 is just below it. I don’t think there is any connection between mine and yours. But, if you want more info let me know.

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16-1S-4W Citation had increased density case approved in Dec 2021 but the wells were dismissed in January. Camino has some pending cases.

17-1S-4W Cheyenne had increased density case approved in Sept 21.

If you are a mineral owner, you should have received all of the mailings. If you haven’t, then make sure your name and address and title/probate info are filed in the county courthouse.

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Thank you, Brock! I have small holdings in Sections 16 and 17 and receive checks from both Cheyenne (very small) and Camino. My heirship for a little more acreage just got okayed and stamped so I might receive additional funds. I wish I understood this stuff to a greater degree!

I would love to see their drilling plans, thank you.

Thank you, Martha. Yes, I have received multiple mailings regarding these cases. My original question had to do with whether Section 17, Township 3S, Range 4W has gone to pooling as I was told by one of the companies wanting to lease my minerals. I have not received any such pooling orders of our interest.

There are no active filings with the OCC and only one company has been taking leases in this Section in the last 5 years.

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