S 14/T 3s/R 3w carter county, ok advice needed

We have gotten 8 letters from various companies( Cambria energy, Ferrelloil co, Freedom oil, Gleason oil, RRIG, and Southwest petroleum) concerning this property. Every letter has a different amount from 1025.00-4500.00 per net mineral acre. What is the difference in leasing the mineral rights, selling them, or selling the surface rights? One company has

bonus: 1800.00 per acre term: 2 years royalty: 1/16

bonus: 1550.00 per acre term: 2 years royalty 1/5

bonus: 150.00 per acre term: 2 years royalty 1/4 and it says they want to lease the mineral acres.

Also, one letter states that our interest will be forced pooled very soon?

Any help would be appreciated.....

Well...it s a kot to take in. BAsically as these bog operators go and prepare ground for the big horizontal wells..they take the following steps:

1) Spacing. They have to establish a spacing unit through the OCC )OKlahoma Corporation Commission). THEse days that means they space 640 acres, or a full section as the spacing unit. THis means that anyone with acres in that section will participate in the well...AND they will be provided notice of any actions being taken with the commission such as spacing, pooling or increased density wells.

2) Once it is spaced next comes pooling. After the operator has tried to lease all the minerals in that section they can, they "force pool" the remaining mineral owners...which is an application they make with the OCC...then a pooling order goes out giving you one of several options to take in bonus and royalty, with the added option that you can invest in a working interest in the well (not for the faint of heart or shallow pockets).

THere are all sorts of small companies that follow behind the major companies like little fish swim around sharks to pick up the crumbs. When they file a spacing or pooling order, it lists all the known mineral owners. So these small companies send letters out to everyone to try and lease their minerals at a low rate. THey then turn around and either lease them to the company at a higher rate, or they invest in a working interest.

There is nothing necessarily wring with leasing to one of these smaller companies...ultimately the big operator will be paying you directly. BUT it is advantageous to wait till close to pooling, or to get them bidding against each other. Unless you are desperate for money, I HIGHLY recommend going for the highest royalty rate you can (Which typically is 1/4). The bonus only comes on the first well, and typically they will do a minimum of 6 additional wells...perhaps up to 12 or 18 per section.

That is a brief summary. I would be happy to speak to you by phone and explain more if you like.

Bob Titley

Moloni...those talking about Bonuses and 2 years terms would be offers to lease. Any amounts over $2000. an acre and not mentioning amount of years might be for purchases. If the letter states you will be force pooled soon I believe I'd wait for the force pooling which is usually a good thing for the mineral owner. It usually means they are going to drill and usually soon! The only problem about waiting for that pooling is that if they decide not to drill then you would lose out on a bonus but that hasn't been the case anywhere down there that I know of. The forced pooling usually gets the mineral owner more bonus and better choices about interest and will tie your minerals up for less time if they happen not get production for you either by not drilling or by a dry hole (heaven forbid) which also has not happen by any MAJOR oil company that uses 3D siesmagraphing down there to my knowledge. Who was the company that said they would force pool soon if you don't mind saying?

Best Wishes!!!

Here is a copy of application for pooling .


Continental filed a protest . The hearing was moved to 4/15/14 and could be rescheduled again .

This is the only completion report in 3s-3w for horizontal well I could find .


A protest could really delay the pooling and drilling couldn't it Ron?

Linda Just got back from town . Yes it could .

Cambria Energy-1025.00per acre to sell

Ferrelloil Co-4500.00 per mineral acre to purchase (was 3500.00 on previous letter)

Freedom Oil and Gas- leasing with previous bonuses listed above

Gleason Oil-1500.00nma bonus, r 3/16 or 18.75%, 3 years...this one says it will be forced pooled

RRIG-just says wants to purchase, no amounts

Southwest Petroleum-purchase mineral and royalty interests, has a check for 250.00 attached

I appreciate everyones help. We are in SC I know very little about this stuff other than the checks we get every month or so from various companies. He worries about this stuff so much because his sister was tricked into selling hers a few years ago for next to nothing.

Then don't sell! You should be able to get $1,500 or more bonus @ 1/5 if you wait. Up north in Garvin people have been getting $800 @1/4. As more wells get completed (if they are good wells) the feeding frenzy will get in full swing.

What if we needed some money soon? What would be the best option here?

If immediate cash flow is needed I think leasing would be the best option. It would give you some bonus money upfront and you would still get royalty from wells drilled in the future. With Continental protesting the pooling by XTO it could be a while before any force pooling occurs. There are other factors to consider such as how many net mineral acres you own and how much immediate cash flow you need.

meloni daly said:

What if we needed some money soon? What would be the best option here?

How do I find out how many acres we own there?

meloni daly said:

nevermind I found the tax receipt..it is 39.24 acres

How do I find out how many acres we own there?

So what happens if I just found out that we are already leasing it to a company? can you lease to more than one? I am so confused here.