I have inherited existing leases Roger Mills County, OK Sec. 24,33,36-13N-24W.
These are the wells, and they are only producing natural gas:
Thurmond Ranch #1 (Diversified Energy) sec. 24 500mcf/month average
Thurmond Ranch #2-24 and #3-24 (BCE-MACH) sec. 24 1500mcf/month average
Thurmond #1-36 (D&J Oil Co.) sec. 36 1000mcf/month average
Frostie #1H-33 (Mustang Fuel) sec 33 800mcf/month average
Signed a lease last year for my minerals in sec. 26, possible future oil and gas Mewbourne well location if drilled.
Looking at all the activity in OKCountyRecords.com, I see a lot going on but can’t make much sense of things. Two of the above existing wells have changed operators in the last six months. On the county records it is constant assignments, partial assignments, and it looks like many of the same companies keep swapping properties/leases back and forth. What are they doing?
Properties in sec. 33 and 36 have had “Top” lease offers, which I have looked into but not entertained.
With more wells getting drilled and great BOE numbers coming from these new horizontals, I’m anticipating action in the areas above that are held by production.
My concerns are I have no idea what terms are in the existing leases. Looking at the low monthly MCF averages and back and forth moving of assets, are these companies trying to hold my leases to sell them to new operators and lock me in to old 3/16 or 1/8 leases my father signed with terrible deductions from 1987-2005 for the future horizontal wells?
Is it not a completely different well from a HBP vertical to a 2-mile horizontal? Even if on the same or a different well pad? If located in the same or different geological formation, with or without a good Depth Clause?
Trying to sum it up, I see lots of activity in these sections and am confused about how this aspect of the business works. When wells should be or are close to being plugged and abandoned, with new drilling upcoming, while my existing leases are stuck.
I probably can’t do anything but wait and see, but I’d prefer to understand what I’m dealing with that may or may not be forthcoming. Any insight would be greatly appreciated.
Thanks!