Pooling application for 21-6N-4W

Am I correct that Cause CD 202 102212, filed on Oct 13, is the long awaited pooling Application for the Woodford common source of supply? The case is to be heard on 10/9/21.

Since I have not leased as of this date, I am noted as a Respondent in the issued letter.

N

I believe you are correct.

You have 20 days from the date of the order in which to respond by certified mail return receipt. If t were me, I would take the highest royalty.

1 Like

If the hearing is set for Nov 09, can you tell me approx. how long I might expect before the order would be issued?

Also, should I contact a landman to at least obtain a lease copy to compare the pooling order to? We have nothing. And, yes, I intend to take the 1/4 royalty.

thanks M_B

The order usually comes out about 3-4 days after the hearing. It would be good to get a copy of your original lease. The original lease is probably onfile at the county courthouse. You may have been force pooled before. That is also available online.

I do have the lease from the original Indultado well (2017 or so). Is that what you are referring to? We were not forced pooled.

I guess I am thinking that without another lease for the formation being pooled, I will run out of time to be able to decide which way to go… lease or pool. You had once said that you find pooling sometimes better than a lease. Can one be that decidedly better than the other?

If Casillas actually has the hearing on November 9, I would doubt you would see the final Order before December 1. The majority of Orders that I have participated in come out 30-90 days after the actual hearing date. So you are looking at having to make your election under the pooling or leasing with someone else around mid to the end of December. As an example, the original pooling Order for Section 21 was signed on July 13, 2017, but the hearing was on May 16, 2017. Leasing vs. Pooling is entirely dependent on the language you are able to negotiate in the lease. Also a factor is how many acres you own.

NoBS: I told you there would be more money offered on the 1/4th royalty once the pooling application was filed. I received an offer today for $1500/acre & 1/4th. I’ll bet (again) that you can get more than that if you have a decent amount of acreage. I assume you were named on the pooling application.

Hey Mr. T,

I received the same from Blackacre Resources. I’m not quite sure what to do with it. If I sign and return the letter… is that a commitment to lease? Or is it simply a notification and not binding in any way?

How do you think the pooling bonus will go? I have no idea how the pooling bonuses are arrived at.

The letter is a waste of time and a stamp in my opinion as it carries no legal weight. You are free to call Blackacre Resources and lease with them directly before the time frame of the pooling runs out or you can just wait for the pooling and answer it. The pooling is “supposed” to reflect the offers that have been sent out from the operator in the immediate section and surrounding eight sections in the last year. A third party “might” offer a slightly higher amount. The leases clauses are very important and your time to negotiate is very short.

My family may very well accept pooling. My interest in this is primarily to have time to read and understand the clauses of the lease before the 20 day pooling clock starts ticking. If there is something substantial between the lease and the pooling order, I want to know it ASAP. I doubt I have enough acres to be able to negotiate with.

If I email Blackstone and ask for a lease copy to review, would they be inclined to send one? Their lease bonus is much higher than what was proposed 9 months ago. If the Pooling is less than what Blackstone is proposing, would their offer then drop accordingly?

BTW - they sent a self addressed, postage paid envelope. :slight_smile:

Go ahead and ask for their lease to be emailed. Then you can save some time and see if you can negotiate better clauses. Pooling is your backup.

Pooling Cause is postponed to Nov 30 according to 202102400 from Nov 09. Does anyone know why?

Also, I was told by Casillas that fracking has been completed on both new wells for 21-6N-4W and that Division orders are to be issued very soon. I have no idea what “soon” means to the oil industry.

There are lots of reasons for applications to be continued. Very common. To my knowledge the wells have not completed the fracking. Casillas was moving in frack equipment on Monday. It usually takes 5-6 months to get paid once production begins. DO’s are not necessary to make payments.

Well, that is almost a direct quote from the Casillas rep. Perhaps she was in hurry to go home… it was Friday after all. Actually, it shall be what it shall be. And I’m good with that.

N

Todd, you have indicated you have very intimate knowledge of Casillas (or, now 89 Energy) operations. I asked this on a different post but maybe you missed it but was curious if you are able to find this information from public sources (and where if so) or if you live nearby or something like that? Or, is there a paid service one could subscribe to that would have something closer to current information on activity? I ask because I inherited minerals in McClain County recently and am trying to learn everything I can and the Casillas/89 Energy group is on 90% of the minerals so trying to do research on those folks too as I am only familiar with the bigger public companies in Oklahoma. Any feedback would be greatly apppreciated!

HR64- You might look at your February 2020 post. “I know a couple of the 89 folks and they are good folks. I can get you in touch with who you need to talk to.”

Not sure how that helps. I did know some of the land folks but they aren’t there anymore. Regardless, they didn’t give me proprietary activity information like you seem to have (nor, would I pester them for it as I assume it’s not information that can freely be shared which is kind of the point of my question)…going back to the question, I can find more information on the bigger questions from public sources, but not the smaller ones like 89 - is there a service you pay for or is it just a word of mouth thing?