Jen, CR said in one of their OCC filings that they planned to develop multi-units with 8 & 17-2N/4W. My top offer in 17 was $18,500.
Jennifer, Wow! I thought the proposal I received was good. Your offer is awesome! I received an offer from Recon for $2,000 per nma on Sec 26 2S-4W. I have 40 nma. If you donāt mind me asking how many nma is your proposal?
Linda, thanks to you and Preston, glad he is taking up the slack 'til you get back on track(er). That is the second report we have heard about fracing in the area, first one was pretty sure it was the Poteets. But I heard from another reliable source that there would be no fracing until #5 was done. Who knows for sure??
Debbie, that is sell not lease.
Yes, that is a sell not a lease. Hutch - I admit that one is tempting, but Iām holding on! My relatives hung on and Iām so darn grateful they did! Least I can do is see this thing through whichever way it goes.
Ohhh! Ok, I thought about that after I commented on Jenniferās comment. Thatās still not bad to sell. I agree, Iād keep mine. Thanks, Michael.
Same here, hanging in there. Nice to know there is still some confidence in the long term. Also glad we are in a wet gas area.
Ed - Thanks for the update. Did they give you any idea when first production would start? Sounds like everything is going smoothly.
Diane: Royalty owners get paid (usually) 6 months after first production. They normally send DOs out just before then. After fracking it can take several weeks to unload enough frac water (50%) from the well before production comes up and gives you a good idea of what the well will look like. If it is Continental, these guys are going so fast and are so understaffed there could be long delays. I have a well with them that has been producing for over a month and is still not pooled in one Section.
Diane, the company that drilled the well (Continental) will always be the payer unless they sell the well to another company. Halliburton is just a service company. Your DO will come from CR.
Hutch-- thanks for posting that. In my haste, I completely overlooked the part about Section 8. I tend to do that, or my reading glasses werenāt close by that day it came in the mail.
Jerry, Nancy, and all, I just heard from Joy whose folks have land where Oceana is located (Stephens County, Section 17, Township 1 North, Range 5 West). Her mom got a call informing her that there had been an environmental spill but it is now cleaned up. Perhaps all those trucks Nancy saw were clean-up trucks. You think? What is āspilledā when there is such an event?
Hey Hutch!
Please post a link to the info about Section 8 and 17 that CLR has published.
Thank you Ed! Once again you have eased my mind. I guess fracking goes a lot faster than drilling! I am also interested in how long it might take until production. I have NOT received any DOā¦donāt those usually arrive before production starts?
Ok when I get back to my computer. Are you related to the Warden 1-20H in Garvin County?
Jerry & Diane,
All the trucks on Oceana are involved in the fracking. The spill was potassium chloride which is nontoxic and only kills the grass. Continentalās EPA person was here and fracking is supposed to be done by the first of the week, then they will clean it up.
Thereās a really good piece on todayās WSJ Opinion page, an interview with Mark Papa, recently retired CEO of EOG. Iād never heard of him, but Iāll bet a lot of you guys have. Thereās a lot of interesting background of fracing and what he expects in the next 10 years.
Thanks Bob! Continental does hold the lease but I am not sure if another company will be involved with the DO as I donāt know how Halliburton is involved or if another company is involved in the final stages.
It will be the purchaser that issues the DO, but Continental has to provide them the pay deck.