We are new to this discussion forum. We have a few acres in section 20 6N/5W Grady county Oklahoma. Could anybody help us with what is going on in our section and what oil company might be working there? Wish we lived closer. We have had it leased for a couple of years. One more year on our lease. We have numerous offers wanting to purchase our acres. Contacted lease company last week asking if there was any action in our section. They were no help to us at all. We would appreciate any help and information anyone could give us. Thanks Ron and Cheryl
Ron and Cheryl,
At first glance, it appears that a first class operator has permitted a horizontal well to be spudded 1/4 mile NE of you and another 2miles SE of you. The operator will be testing two of the most prolific formations known to exist in the area if the wells are drilled. Each well will cost about $4million so they won't be drilled frivolously. I imagine the operator owns your lease or it won't drill the nearby well until it does.
Based on the quality of the operator, I would wait out the lease before selling. The value of the lease will be strong if it expires in a year but you may have a well by then. Once you are in a well, give it a year of production then educate yourselves and demand a price that meets your needs. I hope you have good lease terms.
inson said:
Ron and Cheryl,
At first glance, it appears that a first class operator has permitted a horizontal well to be spudded 1/4 mile NE of you and another 2miles SE of you. The operator will be testing two of the most prolific formations known to exist in the area if the wells are drilled. Each well will cost about $4million so they won't be drilled frivolously. I imagine the operator owns your lease or it won't drill the nearby well until it does.
Based on the quality of the operator, I would wait out the lease before selling. The value of the lease will be strong if it expires in a year but you may have a well by then. Once you are in a well, give it a year of production then educate yourselves and demand a price that meets your needs. I hope you have good lease terms.
Gary L Hutchinson
Minerals Management
Thanks for all the great information,. It is so appreciated. I was left these acres about 30 years ago. Maybe an awesome retirement or awesome for our kids and grandkids. Thanks again Ron and Cheryl