I have mineral rights in 32-17N-12w wondering how much I can sell them for?
What State?
Was forced pooled one year ago, at18.50 percent royalty for 1.50 acres not sure what production is on current well as I have not yet received royalty check, this well is at one of the deepest shale deposits. The current lease is for about 2.5 more years.
Mark -
Your lease might have 2.5 more years in it's Primary Term, but if you will read your lease carefully you will probably find that once production is established, the lease will remain in force until production ceases.
That might be 40 years from now.
We can't provide you with anywhere near an accurate estimate of what your interests might be worth without knowing what State your lands are in.
It’s in blain county Oklahoma
OK. I'll send your legal description to a friend of mine and ask her what she thinks they're worth.
Is the 1.5 acres the surface acreage or your net mineral acreage?
Net mineral acres
I should have asked before: How large is the surface tract?
Looks like a good well , it was completed 5/29/17 and came in @600bopd and 6146 mcf of gas. You should have division orders by now and first check real soon. Did you sign division order and send it back?
Hang on! Too bad you did not negotiate a better lease. You have basically sold 81.25% of your interest.
How is that
If it is produced, that is what you have.
GARY, THANKS FOR THE INFO,
Mark
some of the response you have received are simply way way off base. I don't want to single anyone out, but at 3/16th's aka 18.75% RI you are better off than many, and not as well off as others. Many leases are at 12.5%RI, furthermore in addition to the RI, the terms of the lease are important - things such as post production costs, etc.
As far as location, Devon recently announced the ''IP" for the Faith Marie well. This well is split between 16N 12W S1 and 17N 12W S36. The initial rate for the well was very high (I think like 5200 boepd). I recently analyzed that area, and you may have recently received one of my mailers. I'm available to walk through the analysis of the area, and provide you any information I have.
Since the announcement of the Devon well, acreage prices have seen a spike - so if you still have them, you may want to cash in part of them on the exuberance while it lasts. There are some faults in the general area that maybe influencing results, and results have been mixed.
Overall at 3/16th your looking well north of $10K/acre, and depending on the specific lease terms you may be able to get $15k or more.
If you have any questions or would like any additional insight please feel free to reach out to me via PM, or if you have received one of my mailers, my contact information is on the mailer.
with best regards
Jeff
I still have the rights and thank you for your insight, I will be getting the details on the forced pool lease soon and will know more at that time. I am also interested in finding info for sec 17-18n-12w as I have interests there as well but I have no info as to production in the area. Thanks
Charles...he provided township range and section (17N 12W S32), Blaine County, Oklahoma over pressure window of the STACK Meramec play.
Mark
As you were pooled, you are HBP’d and there is not a primary term.
Carrera completed the Hershey on 5/29 in the Meramec - it usually takes around 5-6 months to get division orders from the operators these days, with first checks following shortly thereafter.
With 1.5 acres at 18.50%, you would have an NRI of 0.022% of the 1,280 acre unit. The unit covers Section 29 and Section 32.
Carrera reported two initial tests for the well, one of may 29, and one of July 10.
http://imaging.occeweb.com/OG/Well%20Records/1DD67586.pdf
The 1st test shows 1135 BOEPD - 416 bopd, 4302 mcfd, 3600 #'s of shut-in pressure, 2850# of flowing pressure.
The 2nd test shows a material drop to 489 BOEPD - 182 Bopd, 1844 mcfd, no report of shut-in pressure, 350#'s of flowing pressure. The opened the choke up almost double the original test.
The notes in the completion report indicate that there was an issue running production casing over the last 3500' of lateral and had to complete open hole. I've included the note before. Essentially, this resulted in an ineffective completion and explains or provides a reason for the sudden production drop.
Overall while this result is a negative for the valuation of your minerals, it is not the end of the world. As I indication in my response on the next page, Devon completed the Faith Marie well 2 miles to the east with an IP of 5100 BOEPD, with a projected 30 day rates of 4500 BOEPD comprised of 2990 bopd and 9660 mcfd. Note that while the drop was 600 boepd, the well maintain a solid rate. I think that acquirers will look to the Faith Marie to compensate the poor results from the Hershey well. The other negative, is that while Carrera has a talented team, as a PE backed group they are designed to delineate and flip their acreage, and therefore the likelihood of density drilling is reduced.
One of the largest impacts on mineral valuations is anticipated timing to full development. With a PE group, this likelihood is stretched out. All in the mix of components will put the value of your acreage in a range – supported on the downside by the strong performance of the Faith Marie well to the East, with a cap driven by the fact the operator is a PE shop and hence a delay to full development as well as the partial failed completion on the existing well.
The following is an excerpt from the completion report.
Were unusual drilling circumstances encountered? Yes Explanation: COULD NOT RUN 5.5" PRODUCTION CASING BELOW 15,947 FEET. DRILLED OUT SHOE TRACK AND EXPOSED OPEN HOLE 15,947 FEET TO 19,568 FEET.
FRACED OPEN HOLE WITH 239,989 BARRELS FW + 1,236,007 POUNDS 100 MESH AND 6,940,386 POUNDS 40/70 PRIOR TO CASED HOLE PORTION OF FRAC.
CASED HOLE PORTION OF FRAC 15,947 FEET TO 10,740 FEET (34 STAGES). CASED HOLE PORTION OF FRAC USED 352,134 BARRELS FW + 2,975,760 POUNDS 100 MESH +9,926,440 POUNDS 40/70 SAND.
TOTAL SAND 21,078,593 POUNDS.
Tom
I find your comment interesting as if Mark didn't take the royalty and bonus, and instead participated with his minerals he would have been on the hook for the CapEx associated with the well. His alternatives, were less cash up front with a larger royalty, which would have been a good thing, even considering the poor well results or participate.
I will take a look at 18N12W s 17 tomorrow or Friday.
Did you see the post on the 1st pages of responses? I included much more detail there on the well located in your unit.
Mark, before you sell, I would wait until you start getting checks in. Once you get monthly checks, as opposed to the first large check you get, you will better be able to judge the value.
jeffrey provided some good initial information, but once you start receiving checks, you'll get a better idea of what to expect on a monthly, or annual basis.
Thank you, I am also possibly interested in selling some unleaded rights I own in section 17-18N-12W in blain co ok. I live in south carolina and am wondering if there is any drilling activity there?