Kathy Here is what they were ordered to offer in the pooling for section 26 next to you .
http://imaging.occeweb.com/AP/Orders/occ5100826.pdf
You can take more then one option with your interest . If you sign a lease give no option to extend. Get no deduction and depth clause for sure. Like Martha said a third party who wants to take a working interest should get you more money. It will also get the lease bonus up in other leases around you faster.
Something you need to consider. How many wells are in that section? Payne county is a faily new play and the energy companies have not even begun to maximize our sections. Directly west of the city there are sections that have up to 9 wells in a section that are in the woodford. That 4000 might seem great now but realistically it’s a drop in the bucket. Get well informed before you decide.
M.D., You are so right!
The Woodford in Stephens Co. This year had 10 wells added to first well in two sections this year. Upper & lower Woodford . And the same Co. is talking about 6 springer formation wells in the same sections. There were offers to buy leased interest for $7000 about a year ago now it is $20.000 +. Who knows ?
I realize that the word is to never, never, never sell your mineral rights but I am being offered $4000 per acre for my rights in 1-17N-04E. This section has recently been included in a horizontal well with a two section pad and the production has been dropping off. My monthly check has steadied out to around $1K per month and it will take around 20 years to equal the $4K per acre offer. What should I do? All now or wait 20 years.
David, Think about it, there is no way Devon, AEP and other companies are going to wait 20 years for payback. I read that currently the wells are not producing at maximum production which is at least double what you get now and times that by 3 to 4 more wells per section (maybe more) for at least 20 years. And what if there is more than oil and gas to be recovered ie rare earth minerals? M.D is right, $4000 is a drop in the bucket. Read Payne, Logan, Noble, Lincoln and Garfield Mineral Forum pages.
David Are there two wells under 36 &1 from 25-18n . One to Miss. and one to Woodford ?
I mean more then one option on the pooling,or with one Co., or with more then one Co. ,or lease some and let them pool some. They are your acres you can do it how you want.
Ron, Devon, Chesapeake and AEP know absolutely everything about OK geology and they want Payne County leases. Stephens is not on the shelf of the Anadarko basin, but Payne County is and the shelf area is where the minerals from the Anadarko basin migrates. The producing formations of Payne County are: Mississippi Lime, Meramec, Woodford Shale, Meisner/Hunton, Sylvan Lime, and the newly found Springer Lime/Shale. The Springer contains aragonite, biogenous silica, and Mg-calcite which is being used by NASA for it’s clocking ability. http://en.wikipedia.org/wiki/Calcite
http://www.cnn.com/2013/11/13/tech/innovation/cloaking-technology/i…
Correction: Cloaking ability, not clocking ability. wow
David, are your offers from Waymar?
Offers are from Sooner. Last year this time the offer from Sooner was around $2300 per acre. Ron, only one well that I am aware of, the Ethridge 36-WX and it looks like it comes from a pad in 30- 18N-4E (as best I can tell). Appreciate all of the info. Am living in Gettysburg, PA and this forum is where most all of the info I get.
What does it mean when the Well Type and Status fields are blank in the following? (Sorry the columns do not align in this pasted clip.) API Operator # Well Name Well # Well Type Status SEC TWP RNG M 35119242080000 23358 BAKER 2 17N 3E 1WH 2 17N 3E IM SW NE NE NE 35119242080000 23358 BAKER 2 17N 3E 1WH 2 17N 3E IM SW NE NE NE
Penny, Calyx received permit to drill the Mississippian then abandoned and plugged the well, but didn’t pull the pipe, just cemented the Miss and coded Miss plugged and abandoned (PA). Then, AEP buys the wells from Calyx and receives permission to recomplete in the Woodford and has coded the wells confidential (WX). There’s a well location correction also and looks like there are now 2 Woodford wells with confidential reports. click on the spy glass symbol on left side of reports. http://occpermit.com/WellBrowse/Webforms/WellInformation.aspx?ID=58…
Here’s information on confidential wells
“All information furnished to the director on recompletions or reentries, except the operator name, well name, location, spacing or drilling unit description, spud date, rig contractor, and any production runs, shall be kept confidential for not more than six months if requested by the operator in writing. The six-month period shall commence on the date the well is completed or the date the well was approved for recompletion or reentry, whichever is earlier. Any information furnished to the director prior to approval of the recompletion or reentry shall remain public.
This means that the only information the agency may release during the confidential period is the name the operator, the well name and location, the spacing or drilling unit description, spud date (when they commenced drilling), the rig contractor, and any production runs (oil sold) from the well.”
http://en.allexperts.com/q/Energy-Industry-Oil-2441/2008/12/Oil-wel…
Relatives have mineral rights in Payne County sec 28 19n 03e. A multi unit was drilled in sec 33 into section 28 & 21. First production was end of January 2014. Calyx started the well and was purchased by American Energy. Lease was with another company. It’s been 8 months since first production. Should we have received information from American energy by now?
Penny, As long as there is no controlling multi section spacing, your lease for the othe section has expired and can be leased again. Usually, confidential status is used to hide very good production. You can call OK Corp Commission and ask if the confidential well’s spacing is holding your other section acreage by production. OCC 405-521-2613. Be sure to check the pooling and completion reports from all the surrounding wells. Also, the terms and wording of your lease are of the upmost importance.
Many thanks, Martha! We cannot seem to get an answer from AEP about this well. It was done while original lease was in effect, though it would have expired a few months later. Our understanding is that if there is any activity prior to its expiration then the original lease is stays in effect. We are getting lease offers on another section, though that first lease was for both sections. For a neophyte this is all a bit confusing, but this forum is great–have learned a good deal and your comments are always useful.
Jeff, Six months after the first sale of production, you should have received royalty payments from AEP.
Assuming all is well with your title, AEP should have sent you a division order. You don’t have to sign a DO to get paid, but AEP has to know your interest (make 100% sure your interest is correct). I use NARO (NADOA) Division Order and http://www.nadoa.org/forms/div_ord.pdf You might consider sending the DO along with a letter stating their royalty interest check is not timely, nicely demand the statutory 12% interest and immediate payment of all production royalties due from backlog and current production sales, ask for a copy of the calculations and attach a copy of Oklahoma §52-570.10 as set forth below.
B. 1. Proceeds from the sale of oil or gas production from an oil or gas well shall be paid to persons legally entitled thereto:
a. commencing not later than six (6) months after the date of first sale, and
b. thereafter not later than the last day of the second succeeding month after the end of the month within which such production is sold.
D. 1. Except as otherwise provided in paragraph 2 of this subsection, where proceeds from the sale of oil or gas production or some portion of such proceeds are not paid prior to the end of the applicable time periods provided in this section, that portion not timely paid shall earn interest at the rate of twelve percent (12%) per annum to be compounded annually, calculated from the end of the month in which such production is sold until the day paid.
a. Where such proceeds are not paid because the title thereto is not marketable, such proceeds shall earn interest at the rate of six percent (6%) per annum to be compounded annually, calculated from the end of the month in which such production was sold until such time as the title to such interest becomes marketable. Marketability of title shall be determined in accordance with the then current title examination standards of the Oklahoma Bar Association.
Thanks, again, Martha. That helps. BY the way what is the status AC? I noticed that was on another well in the same section.