Have niece in Woodlands. Beautiful place. Where are they going to squeeze one million more folks? Just looked and WTI has taken a nice mini-bounce. Another question for you Martha: Payne county section 9 used to produce some in the old vertical days. My grandma got some small royalty checks. By the time my mother inherited the deed, it was almost down to nothing and then it WAS nothing. When it passed to me a few years ago, I didn’t have much hope in the deed being anything more than a piece of paper. Why all the new big interest in Section 9 now? New drilling techniques I would guess?
Interesting reading. Thanks again Martha
Jimmy, Hydrocarbon bearing shale and limestone can be laid down contiguously across several states in basin reservoirs, but there is faulting that causes ‘sweet spots’ where production is much greater and warrants the economics of drilling. Payne Co faulting was caused by uplifting and folding of the Nemaha Mountains.
http://energy.gov/fe/shale-reservoir-characterization
http://www.eia.gov/analysis/studies/usshalegas/pdf/usshaleplays.pdf
http://www.searchanddiscovery.com/documents/2003/mcbee/#03b Garber Field Area
Can someone tell me what to do. I got an application for drilling and spacing from the OCC today. It was for Crown Energy. We did not sign a lease with them. Do I need to call them or will we be pooled later on?
Thanks, I just don’t want to make a mistake.
Debbie, First you get Drilling and Spacing, then Location Exception, then Pooling Order if needed and then Drilling Permit. You will be pooled if you don’t lease, but Crown has to at least “in good faith” try to lease you or you can protest the Pooling. You could call Crown, but you need to find out what Crown has been offering in your area before calling and have a good lease prepared. However, you can just wait until the pooling, which may come pretty quick. What is your legal description?
Here’s some info you might find informative.
http://jay.law.ou.edu/faculty/eking/OilGasPractice/Fall%202012/9-6-…
Thank you Martha. The area is in 33-19n-5e Payne Co. I see now that this came paperwork from the OCC was sent from Grove and Hulett PC, Ok. City. There are two oil companies listed on the notice. American Energy and Bullet Oil and Gas. Other than those two the rest of the names are individuals. Our name is listed even though we don’t have a lease so at least they know we exist. Thanks
Thanks to both of you for your help. Your advice is much appreciated. We will wait and see what happens in the coming months. Hopefully it will get better. Nothing is lost by being patient. Your comments gave me the answer that I needed to make a decision.
Jay, You can find a third party who is willing to pay more. You need to find out what the going rate in the sections immediately surrounding your section by checking the pooling notices and/asking other mineral owners. Going on open forum and asking might work. Also, you can call Oklahoma NARO and get the high med low lease offers for your county. The company trying to lease you should be offering you fair market value that’s reported to OCC. If it’s a land company or broker who is trying to lease you, find out who the actual operator is and talk to them. You can talk to other operators in your area and ask them if they will offer you more. You can try to determine the geological nature of your area and talk to OCC geology if you think drilling and production around you is statutorily wrong (like drilling to close to your section or including your section in a multi unit where it is not necessary). You can wait until pooling hoping oil goes up and brings better offers. Last but not least, you can participate with all of a percentage of your minerals to help offset the low lease bonus and royalty percentage. I’ve successfully done it all, but I am not always successful.
News: GE is buying Haliburton’s drill bit business and will use GE’s Jenbacher LNG engines to drill shale reducing emissions 25% and fuel costs 60%.
Debbie, All known mineral owners in the drilling unit should be listed and contacted by the operator to negotiate leasing prior to pooling. Oil prices may go back up mid year 2016 and lease bonuses and royalty interest percentages will rise with the price of oil, so waiting to lease or be pooled might be wise right now.
Debbie, I know it isn’t the exact STR you are in but check out these rates close to your interest. Choose your Royalty carefully and check for deductions! Good luck!
PAYNE COUNTY
American Energy-woodford Llc
Woodford(5022): Oil 304** Gas 319 Water 1668 Pump
35 19N 2E Duncan 35-26-19n-2e 1wh, October 03, 2015
HH, OIL, TD: 14280 ft
Lat: 36.07352, Long: -97.06117 API: 35119243370000
American Energy-woodford Llc
Woodford(5068): Oil 821 Gas 407 Water 1600 Pump
34 19N 2E Boomer 35-26-19n-2e 1wh, October 30, 2015
HH, OIL, TD: 13986 ft
Lat: 36.07386, Long: -97.06987 API: 35119243600001
**
While on the subject: What do most of you do when you can’t get the leasing agent to come to terms? Either they want to leave one or two things out of your Exhibit, or only want to pay tops 3/16, no option for 1/5 or 1/4… Most recently they have just told me no we will just pool you. Anyone ever have any luck in Pooling showing your case that you did try to work with them but they were unwilling to negotiate unless it was their terms only? I wanna hear how this has turned out for some of you who have taken the “bull by the horns” Thanks
Jimmy, A very good well will recover 100 MBO and 300 MMCF gas, so 871 divided by 100 is approximately 8. I don’t have all the data on your section, so I could be wrong, but they are using 40-20 spacing for sections with 2000 MBO recoverable in TX, but the wells are a little deeper. Still, that’s 16 to 32 wells per section.
Martha, despite WTI at $34 this morning, I think I did get some good news in mail over the weekend. Got an “Order Of The Commission” approving AEW drilling a second well “simultaneously or back to back” when they drill the first one. AEW evidence shows our section (9-T18N 2E) is underlain by approx. 871 MBO recoverabel and 3,115 MMCF recoverable gas. It also states "applicant expects there will be need for additional density development after the proposed 2nd well is complete. (I assume that means more wells?) Your thoughts?
Thanks again Martha. I’m hoping this will all turn out good for my retirement.
News: Congress passed the bill to lift the US oil export ban with a provision for the US President to stop exporting oil for 1 year in case of national emergency and higher than expected prices. Hopefully, the provision will keep Obama from vetoing the bill. Yellen spoke today stating she expects oil price to stabilize and then slowly rise from there. Lifting the export ban would result in long term oil contracts at set prices which would stabilize the price and future contract prices would rise with increased demand.
I will hold the Gun to his Head/China needs more oil as we need more Tupperware…and so it goes…Hopefully it passes and maybe it will help…Momma needs a new roof, just had a bid of 18K…My god…
Jimmy, Did you sign a lease?
Robot drilling. National Oilwell Varco and Schlumberger have developed drill pipe wired with high-speed data lines allowing drill bits to feed information to computers at the surface. GE bought Haliburton’s drill bit division. Apache has written software that allows the drill bit to think for itself. Watch video: http://www.rds.no/home
Hi Martha, went to the link but info was all about a robot that replaces humans on drill floor handling pipe. Nothing about the “thinking drill bit” ?