Hey all. I got an update from my landman saying payments should be coming soon along with division orders shortly after. Yay!
However I got call from someone at Pheonix energy trying to buy my rights. In the conversation he asked if I knew much of what was going on with it lately and mentioned that continental were trying to get a super section made, he seemed to think it probably won’t happen but I am curious what the exactly it means ChatGPT gave me some information but I was wondering if anyone has any experience on what to expect if a super section was to be made. Many thanks in advance.
Are you referring to a landman who is working for you under your direction? Just curious as to the wording you used here. My question simply stems from the fact that in the Wild West of oil and gas mineral leasing, citizen mineral owners often aren’t fully understanding of how the industry generally operates. Speaking as a retired 50 yr. industry professional.
I think what the land man meant was a large drilling unit. The downside is that it dilutes your net mineral acres into a larger gross drilling unit. The upside is that you would then get a piece of every well that is in the unit.
I don’t know if anyone else has mentioned this but compare your Division Order terms with your Lease terms. They tried to change mine from monthly checks (per the lease) to a check whenever they hit $100. I refused to sign the Division Order. They threatened to withhold payments. I threatened to take them to court. They started paying me monthly….
is there any way to figure out what the difference could possibly be between the two? like am i going to do better with a diluted acreage but more wells or staying how it is? i guess this would be a real question to someone whos had had both types before…
For our family, we have benefited greatly from the extra wells over the decades. Our particular acreage may have gone non-productive over time, but the acreage we were tied into by the expanded unit size has given us royalties for many, many years longer than we would have received them from the original acreage.
Side note/question, pheonix energy guy had mentioned something about how our section only has 3 wells right now but could possibly hold up to 6-8, and that his offer was based off of 4 wells not the 3. Does that mean theres a possibility of more wells going up later down the line?