Signed with Newfield Originally, Alta Mesa wants to Renew


#1

In late 2015, we signed a 3 year lease for our Oklahoma Kingfisher and Major Counties rights in Section 32, 20N 9W with Newfield/Mid-Continent for 3 years. This week we received checks from Alta Mesa with not much explanation.

The check stubs do have to be signed and returned. They say Payment Type: Extension option. They contain other information - County, Recorded book page, date of lease (2 more years,) lease #, payee # and state:

Numerous calls and emails to Alta Mesa are unanswered. So we assume this is an extension. Is it common to sign with one company and then extend a lease with another company? Is it common for a company to renew a lease this way - no documents, contracts, etc, just a check?

Thanks! Sheree


#2

Newfield assigned their interest over to Alta Mesa (Oklahoma Energy Acquisitions). Since you had extension language in your lease, this gave Alta Mesa the option to extend your lease for the additional 2 years at their discretion.


#3

As Andrew said, normal. As for contacting Alta Mesa, did you send them an email with you information/questions? I’ve contacted them several times of the past couple of months (as late as 2 weeks ago) with questions on several new wells and one producing and they’ve always replied in about 2 days. My experience with several companies is that they seldom if ever reply to phone calls.


#4

Thank You John. I did send an email through their contact us page and via another person I spoke with at Alta Mesa that knew nothing but said, “Email me your info and I will forward it to the right person.”

I will keep trying. I have the person’s name in the land office I am supposed to speak with. Is it the Land Office you usually communicate with?


#5

The person who replied to me is Belinda bcathey@AltaMesa.net, when she didn’t have the answer it was referred to someone else (don’t know the dept) and they replied within a couple of days with the information.


#6

Sheree,

I have interests in your area and I also happen to have a lot of state-wide production data.

AM is hard to contact. I have had several issues pertaining to my leasehold.

Also, if interested in the big picture, please check out my site (alexschwab.com). I have uploaded every OCC Order into an interactive map for 2018 up to 9/15/2018. I would be happy to provide a breakdown of activity in your area that might possibly give you a better idea of what is going on around you.

Wake Energy recently received a pooling order in the section next to you 33-20N-9W. Husky received a Spacing Order in 35-20N-9W. Chisholm, OEA/AM and others are active in that area as well. Please see my site mentioned above for more info.

Best, Alex


#7

Thank you Alex. I have had quite a few people tell us there is activity nearby, but not sure what that means for us. I assume it means they may head our way next?


#8

Sheree, If you list your section, township and range, someone may be able to help with activity.


#9

No problem Sheree.

The recent activity around you is primarily limited to spacing and (forced) pooling orders. Spacing and pooling orders are the early stages of development wherein the operator is preparing to drill. There isn’t a lot of horizontal production history to go off of around you, therefore the operator will extend leases or force pool your minerals as other drillers take the risk of drilling new wells. The forced pooling orders around you average around $1300/acre for 1/8 royalty, down to no bonus and a 1/5 royalty - fairly standard for an under-proven area.

My guess is that you should start seeing some production results within the 12 months.


#10

@Sheree_Zaerr attached is a more detailed map. Please feel free to share.


#11

Thanks Alex. We are at Section 32 20N 9W in Kingfisher and Major counties.


#12

there is a rig drilling in 34-20-9 now