We’ve had an active lease for years w/Ominex as operator. Two years ago (and 1-2 years after we received a shut-in notice)they disappeared & all emails bounced back, all Google researched phones were disconnected, and Certified letter returned stamped Moved No Forwarding Address. Everything on Google was stale information and all contacts phone numbers, emails, and addresses were no good. We gave up on it assuming they went bankrupt. We just received a form letter from Omimex from a previously unpublished address. This letter refers to the fact that “oil & gas prices are down 20 to 25% and wells like ours are facing rapid production declines”. They aré soliciting us to sell them our Royalty interest. The letter states “We are committed to a fair transparent valuation based on current market data and your well’s performance”. My first inclination is to tell them to go you know where after leaving us in the dark like this. Could someone else post their interpretation of this letter as to why they would want to buy an end of life well Royalty anyway, especially when they’ve already produced from it for years. Is this just a ploy to renegotiate on the cheap? Thanks in advance!
Given their track record, I would be very hesitant to deal with them again. Most companies that offer to buy know that drilling is pending and tend to offer lowball letters just to see who will bite. The forum can help with activity in your area if you post in the County where your minerals are located. Some buyers collect and flip and some buyers keep. You need to find out what is going in you area before making any decision.
The well is in Oceana County, Michigan. Thank you so much for the input!
Not much activity in Oceana now. Most of the leasing in the last 36 months has been in the northern part of the state. There are scattered permits across the state, but none in Oceana right now. If you give the name of the well, I can look up its production profile to see its status.
Andrews 8-28 and thank you!
Last production is listed as of 10/1/23. The well made 221,599 mcf of gas and 138,870 bbls oil. Was completed in 2004, so pretty long life for an oil well. Looks like the well was barely producing anything from 2020 on. No gas, so lost its natural drive. Don’t see any new permits close by.