(S/2 SE/4) section 17-T19N-R2W

Pamela_Donicht · February 18, 2012, 11:46pm

Hi, I’m from Baker City, Oregon, and just recently found out that I own land in Logan County. I guess the land was my great-grandfather’s, Abraham Shippy. I was never told about this land, and I was contacted on Facebook by a cousin who told me that another cousin has been taking care of this land all these years and now wants me to sell the mineral rights!! Can anyone tell me what is going on with this piece of land? I feel that someone is being dishonest. I would really be grateful if someone could help me. The land is (S/2 SE/4) Section 17-T19N-R2W.

Thank you.

Virginia_Pflum · February 19, 2012, 1:19am

Pamela,

My first question would be: do you own the surface or just the minerals?

They are drilling horizontal wells in the area, and people are leasing the minerals. You need to check with this cousin and ask if they leased and to what company. The company may not be able to find your address. You may need to have someone (like an attorney) in Logan County check the county clerk records and see if anything has been recorded on the property. You may not have a clear title to your minerals and at least should file an address/contact on this.

I own land in Logan County but live in Texas.

Portia_Jane_Clayton · February 19, 2012, 1:21am

I own in SW 2 19 3 in Logan County, Oklahoma. There is a lot of drilling around my area. I recently have received offers up to $1500 an acre for my mineral rights. Hope this helps.

lee_phillips1 · February 19, 2012, 1:41am

Pamela,

Your position is in an area that is active and will get even more so. My guess is you do have a share in the minerals or they would not have asked you to sell and no doubt they’ve already done the title work and know who has the mineral rights. Virginia’s idea is correct to get an attorney from the area and find out what you have for yourself. The two recently completed horizontal wells in the area are doing very well and are of the volumes that will start a small boom in northern Logan County. There is little acreage left open for lease in this area. Acreage still open in this area will go for $1000 per acre for a lease, not to sell your rights. It could go as high as $2000 if the wells continue to perform like the first two.

Virginia_Pflum · February 19, 2012, 2:19am

Pamela,

I own SW5-19N-2W, Logan, and I think you are about 2 miles south of me. They just finished a well a few months back in 15-19N-2W that is doing real good. I would call (OCC) Oklahoma Corporation Commission and ask Donna if anything is drilled on your property as you may be on a 640-acre spacing already. Her number is online, and if you can’t find it, I can get it tomorrow for you. It’s in my briefcase, but it’s under 1,000 other papers right now as I’m working on tax.

The second thing I would do is call Chesapeake, 6100 North Western Avenue, Oklahoma City, OK 73118, and Continental Resources, Inc., 302 N. Independence, Enid, OK 73702, (580-233-8955) toll free (800-256-8955) Fax 580-548-5253. One of these companies may have been looking for you. Then you can probably lease your land and make a lot more than selling it. I think there is one other company that is drilling in the area, but I can’t remember who. It may be Devon.

If you need a good Oil & Gas Attorney, I have a great group in OK City that I have used for a long time. I will be glad to share his name if you need it. Just email me at: pflum1@sbcglobal.net.

Also, if you do own mineral in OK, you may want to attend the workshop they will be having in the fall, I think it’s in AZ or somewhere out that way. OCC can tell you about it and it may even be online by now. I think it’s about $250 or $350, can’t remember, but will be worth it just for the new laws.

Mineral_Joe · February 19, 2012, 4:26am

Small boom in Logan County, yes very small, 1 drilling rig.

Mine in Northern Logan were recently released from lease as there was no interest. Yours are in the better area in 19N-2W. Logan County is more of an oil play and more shallow, so more activity with high oil prices.

lee_phillips1 · February 19, 2012, 3:40pm

Joe,

There are four rigs drilling in the Mulhall Orland area and more on the way. Keep in mind the first two wells have recently started to produce and the volumes are impressive. Rig demand is very high and getting them to the area takes time. This is an oil play and companies with leasehold will drill it. If you have acreage not leased it should go for 850 to 1000 an acre.

Virginia_Pflum · February 19, 2012, 4:21pm

Mineral Joe,

What part of Logan County are you in? I’m in the northern part and they have staked at least 4 more wells in N. Logan and S Noble County that I know of.

They just fracked one of the wells next to me, so I don’t understand why they would let your lease go. I know they have been doing lots of drilling in the south part of Noble County also.

Has anyone heard what kind of volume they are producing? I haven’t heard even though I’m in on a well that just has been fracked. That is when I was told they had stacked a few more wells in the area. So I figured they must be doing pretty good as the cost of drilling these wells are very expensive. I know in Arlington, TX these wells ran about 3 M to drill and bring in, not sure what they are in Logan County as I’m not doing any partnership in that County, just have land there.

Also, does anyone know if there is a spell check on the forum? I sure need one. I was good in math, but I forgot my grammar/spelling. I blame it on the small school in OK. Ha, think it must be me.

lee_phillips1 · February 19, 2012, 5:15pm

Virginia,

The two wells in the Mulhall area are doing 500 oil per day and 700, not sure which is doing what? The gas would be a significant volume with that much oil but have not been told the number. By comparison to other wells in the state that make this volume of oil the lease cost should be much higher. I have a small amount of acreage left and am leasing for 850. Probably should hold out for 1000 as it is worth it but don’t want to be greedy.

Virginia Pflum said:

Mineral Joe,

What part of Logan County are you in? I’m in the northern part and they have staked at least 4 more wells in N. Logan and S Noble County that I know of.

They just fracked one of the wells next to me, so I don’t understand why they would let your lease go. I know they have been doing lots of drilling in the south part of Noble County also.

Has anyone heard what kind of volume they are producing? I haven’t heard even though I’m in on a well that just has been fracked. That is when I was told they had stacked a few more wells in the area. So I figured they must be doing pretty good as the cost of drilling these wells are very expensive. I know in Arlington, TX these wells ran about 3 M to drill and bring in, not sure what they are in Logan County as I’m not doing any partnership in that County, just have land there.

Also, does anyone know if there is a spell check on the forum? I sure need one. I was good in math, but I forgot my grammar/spelling. I blame it on the small school in OK. Ha, think it must be me.

Mineral_Joe · February 19, 2012, 7:20pm

I am in 17N-1W and 16N-3W. When I stated 1 rig running it wasn’t from visual as I am about an hour away it was from Baker Hughes rig count which are generally correct. I also didn’t see any permits, pooling orders or spacing orders in 19N-2W or 18N-2W except the 2 wells already drilled and the one in 4-18N-2W which they supposedly drilled last year. Lee, are all 4 rigs drilling in 19N-2W?

Lee, who is paying you $850 per acre bonus? What royalty goes with that $850? You were saying they were paying $1000 per acre and maybe going to $2500 so why would you settle for $850 if you think they will be paying $2500 per acre bonus?

Pooled at 1/8th royalty and $150 to high of $400 bonus, most are for about $200 bonus

Completion cost stated in pooling orders are 2.4 to 3.4 MM

Virginia_Pflum · February 19, 2012, 7:39pm

Mineral Joe,

Hate to tell you, but the 1/8 royalty went out in the 1960. I don’t know anyone who doesn’t get at least 3/16. Here in TX, we are getting 27% free of cost on gas wells. And bonus was $12,500+, but it’s a lot less now.

I know several people in N Logan and Noble County that got a lot more than $150. I haven’t heard of anyone getting the $850 or $1000 yet. Most of the property around me is leased, so I doubt that I will get to hear about it.

I think most of the property in 19N-2W was spaced last year. I know my farms were spaced in the fall of last year. Since I’m not at the farm, I don’t know how many wells are drilling, but I know of several that are staked.

Virginia

Mineral_Joe · February 19, 2012, 8:04pm

Virginia,

Sorry Virginia but you’re wrong, I do oil & gas for a living and I know for a fact 1/8th royalty didn’t go out in the 60’s and people are getting offered a 1/8th royalty all over the United States every day right now, yes also 1/6th, 3/16ths, 1/5th, 1/4 and other offers and I know for a fact in Oklahoma if your interest is pooled unless you make an election otherwise when your interest is pooled almost all people pooled get the maximum dollar offered amount and a 1/8th royalty. I also did not say people are only getting $150 lease bonus in Logan County, I said they are being pooled at $150 to $400 bonus with most getting $200, I looked at all recent pooling orders in Logan County.

Mineral_Joe · February 19, 2012, 8:36pm

Here are all of the most recent initial production reports for horizontal wells in Logan County. Initial production figures are normally very much on the high side compared to average full monthly production. It just shows that the wells producing 15,000 and 21,000 bbls a month (500 and 700 bbls a day) for the past 2 months as Lee says the wells in 19N-2W are producing during normal production are exceptional wells.

Husky Ventures Inc.; Hancock No. 1-20H Well; SW1/4 SE1/4 SE1/4 SE1/4 (SL) of 20-16N-04W; 16 barrels oil per day, 32,000 cu-ft gas per day; TD 11,598.

Kirkpatrick Oil Co. Inc.; Jordan No. 1-6H Well; NE1/4 SW1/4 SE1/4 SE1/4 (SL) of 06-19N-03W; 125 barrels oil per day, 577,000 cu-ft gas per day; TD 8,346.

Kirkpatrick Oil Co. Inc.; Smith No. 1-6H Well; S1/2 S1/2 S1/2 SW1/4 (SL) of 06-19N-03W; 687,000 cu-ft gas per day, 143 barrels oil per day; TD 9,150.

Husky Ventures Inc.; Olin No. 1-20H Well; SW1/4 SE1/4 SE1/4 SW1/4 (SL) of 20-16N-04W; 26 barrels oil per day, 78,000 cu-ft gas per day; TD 11,434.

Husky Ventures Inc.; Naomi No. 1-29H Well; SW1/4 SE1/4 SE1/4 SW1/4 (SL) of 20-16N-04W; 58 barrels oil per day, 136,000 cu-ft gas per day; TD 11,100.

Payne Exploration Co.; Rising No. 1-30H Well; NW1/4 SE1/4 NW1/4 NE1/4 (SL) of 30-16N-04W; 71.77 barrels oil per day, 350,000 cu-ft gas per day; TD 10,614.

Kirkpatrick Oil Co. Inc.; Weber No. 1-35H Well; W1/2 E1/2 SW1/4 NE1/4 (BHL) of 02-19N-04W; 68 barrels oil per day, 635,000 cu-ft gas per day; TD 8,608.

Virginia_Pflum · February 19, 2012, 10:06pm

Mineral Joe,

I will apologize. I was unaware that people were still leasing for less than 3/16. I have leased over 1,000 acres in the last couple years and never took less than 3/16. Some of it is pooled, but I still get 3/16. In fact, I lease back in 1990 for 20% in Noble County and got a good lease beside that. So, guess it’s whomever can get the most.

Do you have any records on wells that is on the south line of Noble County? Maybe section 32-20N-2W, Noble County. They just finished a H well in Noble County that goes to my land in Logan County, but I haven’t heard what it’s doing. It was just fracked last month, so it’s probably not on line yet.

Also, do you know what water is selling for in Noble and Logan as it’s been so dry up there. I know in west TX they are getting about 50 cents a barrel. And they are drilling water wells in east TX.

Mineral_Joe · February 19, 2012, 10:47pm

Virginia,

No need to apologize, it’s the companies leasing at a 1/8th that should apologize, but I guess like everyone they are trying to make a buck too. So much of Colorado is leased today at a 1/8th and I see a lot here in Oklahoma also but not as much anymore here except if you’re pooled and don’t make an election. From what I have seen about 90% are pooled at a 1/8th here in Okla.

I’m sorry but I don’t keep up with water prices, I just know the lakes have all but dried up around here and the fishing is over for years.

As for records on Noble, you can use the OCC case processing web application to look up anything you want like pooling orders.

lee_phillips1 · February 19, 2012, 11:54pm

Generally speaking 1/8 royalties did go out in the late 70s. In N.W. Okla. you will see 3/16 and now a lot of 1/4 R.I. Many people may get offers for 1/8 but most likely not many takers. Of the production numbers listed only the Kirkpatrick wells are horizontal. Joe the four rigs mentioned are in the area of Mullhall and Orlando. One rig is south of Stillwater but moving back to the Mullhall area. One rig blew out and burnt, it is out of service for a month to be rebuilt. HP is soon bringing two rigs and Nabors one more.

Have to keep the companies name confidential that is paying the higher price. As I’ve said before acreage in Alfalfa County is going for 850 to 1500 and the wells are not as good as the first two in our area. If you get pooled you will be given a 3/16 RI. The oil companies have researched old logs from wells drilled years ago in this area and from their experiences knew what type of producers these would be if drilled horizontal. That’s why they leased the whole area first at a low bonus price.

Mineral Joe said: