I have an offer of $11,600 per acre for mineral rights in Grady County, Section 31, 07 N, 06W. Does anyone know the prices rights have been bringing in this section or similar sections?
Hi Max, I just received an offer for my mineral rights in section 31-7N-5W, for $7850 per nma. I’m not sure how close my section is to yours, but your offer is much better than mine. Do you mind me asking who your offer is from? Thank you Urrisa
Hello Urrisa,
The offer is from Echo Energy. My mineral rights include interest in a well. I believe the name of the well is Kathryn 131. Do you have an interest in that well ?
Max, I’m not sure what the well is called. I will have to look at my paperwork this afternoon and verify the name of the well. I will let you know. Thank you. Urrisa
Max,
After looking through my paperwork, I cannot seem to find the name of the well on my section 31-7N-5W. Perhaps someone out there can tell me or perhaps there is not a well yet? I'm just not sure. Your offer is much higher than my offer though, for sure.
Thanks,
Urrisa
Max, considering that section 29 just catty corner to you has permission for five wells, you might not want to sell. 1,600,000 bbl oil and 4.8 BCF gas were left in the Springer after the first well. The Kathryn well is not great, but that offer makes me think a Springer well might be coming someday. If it were mine, I would not sell.
Urissa, there are quite a few pending case dockets on 31-7N-5W right now, so be sure you know what activity is about to happen before you sell. Your current well is the Dyer 1-31H. Looks like six more wells for you. If I were you, I would not sell. That offer is too low.
M Barnes, thank you for your reply. Please excuse me if I have misinterpreted your message, but do you mean there is a Springer shale formation lying above the level where the Kathryn well was drilled, and and future wells may be drilled to tap the oil and gas in this formation?
M Barnes, thank you for your reply. Please excuse me if I misinterpret your message, but do you mean a Springer shale formation lies above the level of the Kathryn well, and future wells may be drilled to tap the oil and gas in this formation?
Yes, the Springer is above the Woodford which I think the Kathryn was in.
M Barnes, thank you for the info. At first I thought you may have meant Sections 29 and 31 were in the same pool. I now presume they aren't. I'm not sure how pooling works, but my guess is a pool covers only one Section (640 acres ?) or part of one Section.
In OK, each section is pooled separately for horizontal wells. Vertical wells may have a smaller spacing and pooling dependent upon whether oil or gas and the depth of oil wells.
If a well is going to be multi-unit, then each section is pooled on its own. You will be paid by your net acres/spacing (~640 if HZ well-not all sections are exactly 640 ac) x royalty x % of well perforated in your section.
M Barnes, thanks to you I'm getting a better understanding of the subject.
There is an excellent booklet put out by the OK Corporation Commission that explains the way it all works.
It is called the Royalty Owners Guide to the OCC.
Friend me with the blue icon to the left and I can send it to you if you can't find it online.
Thank you. I didn't find that title online but I found Basic Information for the Oklahoma Royalty Owner, Latest Revision, Sept. 2012, which gives explanations.
Most recent OCC records show no gas production from the Kathryn well since July. Could this mean the well has been shut-in in anticipation of a seasonal and/or long-term rise in the price of natural gas?
That is the correct one. I probably saved it in my files to a name I would remember.
Go to the tax site. The OCC does not report everything and it is not sales.
https://www2.oktax.onenet.net/GrossProduction/gp_PublicSearchPUNbyLegal.php
Offers to lease?
Not sure what your question pertains to. "Offers to lease?"