This is a little long, but it’s well worth watching. http://www.bloomberg.com/news/articles/2015-07-20/oil-guru-who-call…
I’m not sure who owns SEC now, but they have been around for 20-30 years; started and owned by several local oil/business men. They were known as a good company. Perhaps some other Payne County mineral owners have an update on this company. They’ve been sold/bought several times. If I learn more, I’ll let you know.
Does anybody know anything about Special Energy Corp out of Stillwater?
Devon sold a couple of our wells to them…thanks!
I’d like some opinions on a situation I have. I know opinions are a dime a dozen, but I value the experience of the members here. I have a small(1/2 of 1 %) interest in Section 12, Twp 18N, Range 2E in Payne County. I signed a lease after it was in operation in March of 2013. A second well was drilled in March of 2014. The operator is Truvine Operating, and I just received payment for the 27 + months in June 2015. It totaled just under $1,000. Haven’t tried to get the 12% interest yet. AEP has been given relief to drill 2 additional wells as of the 25th of June, 2015. I have been offered $5,000 per acre for the 5.95 acres I have. Don’t really need to sell, so thought I’d ask $7,000 and wait for their response. Any and all opinions are welcome. Thanks, JC
Thanks Jodean for the info.
JC,I would never sell minerals unless it was a dire emergency and I needed quick cash.
JC, I, like Linda, never recommend selling minerals. New technology is driving better well performance. This month, Continental Resources (CLR) announced it’s new plug and sleeve fracking technique which is improving well completions by 50%. On Aug 6th, CLR will provide Wall Street Journal with further details on this new technique. Other companies are reporting improved production which new products like the X shaped propants designed by GE. Halliburton and Schlumberger are working on new techniques which may significantly improve production also and the price of oil is expected to rise above $90 by 2017.
Martha and Linda, My reasoning was that IF they would pay what I want it would be hard for me to recoup that amount if I live another ten years, being as I receive about $40.00 a month from it now. When the other two wells are in operation I would expect it to be better, but how much better I don’t know. Don’t have to sell it, so not going to hurry. I would use the money to do a solar system for our home and we’d be pretty much self sufficient. JC
JC, I’ve seen phony oil downturns before, but this latest is the biggest joke yet. For months, all we have heard is how Iran’s oil will flood the market and cause more oil price decline, but the truth is that Iran’s oil is not even oil, it’s condensate and the refineries don’t want it, because it contains impurities. All the stories about oil being stored in tankers at sea where true, but that oil has now been sold, so we don’t have a huge over supply of oil. The USA is getting ready to have the biggest oil bonanza in it’s history and we are part of it. I do hope you live to recoup more than your offered sale price, but $5000 is not enough for 30 to 40 years of massive drilling and high oil prices like we’ve never seen before. I’m getting old and may never see the lions share of my minerals, but I could live long enough to see the USA become energy independent and that’s priceless.
I hope so, but they are saying 2017. Hopefully it will be sooner than later…I am running out of time also…And Cash…LOL
Bob, Oil price cycles take about 18 months and the current cycle began last July, so we only have 1 more year until we see $90 oil. I’m predicting $140 by end of 2018 and taking lots of vitamins. LOL!
Here’s a good article on oil cycles. It’s long, but the main question is… At what high oil price does it become more economic to invest in energy alternatives? http://www.theoildrum.com/node/6814
Here’s an article on alternative energy. http://www.altenergy.org/transition/transition.html
If oil stays to low for to long, companies stop investing in oil projects, production declines and alternatives are not in place, so get an “oil shock”. The 1979 “oil shock” occurred due to decreased oil production and the price of oil doubled in 1 year going from $20 to $40. The first ever “oil shock” was in 1973 and oil quadrupled going from $3 to $12.
Ref top of question form keeping or selling maybe I should direct it to Martha McMorris. I’m 74 years old.
Robert, It’s very hard to value minerals. Without an offer, it’s just a guesstimate. The Devon article below should give everyone an idea of what is to come. They haven’t even begin the massive drilling program that will entail 3 to 4 producing wells per drilling pad on 20 ft spacings. When Devon was drilling their pilot Woodford shale program in Canadian Co the mineral buy out offers went to 15K per acre and oil was around $100. I do not know if Payne will see 15K per acre, but it’s possible and we have to consider what minerals will be worth if the price of oil goes to $200.
Martha are you familiar with the locations I gave you?
Martha, As always I value your experience and expertise. I’ll let them know I’ll sell, but at the price I want or I’ll keep it. JC
Devon’s Northern Oklahoma Woodford Shale Overview 2014 AADE Mid-Continent Technical Conference “4-5 wells per pad – 20 ft. spacing, 3 to 4 producers & 1 disposal”
www.aade.org/app/download/7237644894/Brad Crowdis Devon.pdf
JC, Well data map shows your minerals in a very good area sandwiched between two of the best oil and gas sweet spots in Payne Co. I don’t advise selling, but if you have to do so, I don’t advise taking anything less than $10,000 per acre and I strongly believe it could be worth $20,000 or more. Good Luck!
Robert, Has a company made you an offer?
Thanks but no offer.
Robert, I do not have minerals in your area. There’s a horizontal well in 30-18N-04E. It’s a multi unit. http://imaging.occeweb.com/OG/Well%20Records/1DD0B725.pdf