Inherited the mineral interests listed below (with S/T/R and interest amount) and trying to decide whether to keep or sell. Was told they average $700-$1400 per month in royalties allegedly but haven’t seen checks yet as the estate isn’t through probate. We have one other OK Co interest but it doesn’t make near that per month so I’m very curious to see if we are being told the truth. If selling, would love to know what to ask for them. Also, is there any way to look up production?
WEHLU TR 148,149,167 RI 0.00024000 N2 & SE4 SW4 Sec 5-14N4W Oklahoma County OK
WEHLU TR 168 RI 0.00024100 SE4 SE4 Sec 5-14N-4W Oklahoma County OK
WEHLU TR 184,202 RI 0.00024040 W2 NW4 Sec 8-14N-4W Oklahoma County OK
WEHLU TR 185,186,203 RI 0.00024100 E2 NW4 & NW4 NE4 Sec 8-14N-4W Oklahoma County OK
WEHLU TR 187,204,205 RI 0.00024040 S2 & NE4 Sec 8-14N-4W Oklahoma County OK
WEHLU TR 206 RI 0.00024040 SW4 NW4 Sec 9-14N-4W Oklahoma County OK
WEHLU TR 449,450,461, 462 RI 0.00078130 NE4 Sec 31-14N-4W Oklahoma County OK
You can look up production on the Oklahoma Corporation Commission website at occeweb.com. Search by Section 5 and 8, Township 14N, Range 4W, Oklahoma County. You’ll see the well names and monthly production volumes there.
On valuation: for producing royalty interests like these, a common starting range is 4–6x annual royalty income. At $700–$1,400/month, that’s roughly $33,600–$100,800. Worth noting that buyers targeting WEHLU interests are sometimes after deeper formations with horizontal potential, not just the Hunton Lime production, which can affect what they’re willing to pay.
Has the estate attorney confirmed whether any royalties are currently in suspense?
Get the rest of the information that you need and get the probate closed and royalties coming in the door before you decide what to do.
These tracts are part of a very large oil field called the West Edmond Hunton Lime Unit. The tract numbers described above are part of the tracts for the field and describe your ancestor’s original ownership in the whole field. Once the field was unitized and put under one operator back in 1945, your tracts were added to the whole unit and you now get royalties based upon every well in the entire field at the decimal amounts shown which are based upon the tract percentage, the royalty and the spacing acres.
I have attached the documents that pertain to that field. You need to find out if you only have an Over Ride on the field or if you actually own the mineral acres. The field is huge and you are getting paid a small fraction on every well in the field based upon the percentage of of the tracts in the field.
However, there are also horizontal wells that go through the area in a different reservoir (Oswego) that is not part of the main field. If you own mineral rights then you may be owed royalties on those wells in addition. I also see newer horizontal wells that were drilled into the Hunton Lime nearby. So Lots to Find Out before considering a sale. Many of the old wells in the WEHLU are plugged, but a few are still chugging along. You are getting paid on them even if they are not in your tract due to the unitization agreement.
Here is the original document describing the engineering report. It is pretty technical, but put it in your records. The maps starting on page 156 are useful for showing the reservoir geology. Save it digitally, don’t print it, historical data.
Error.
Once the probate is finished, you need to contact the operator of the current field and the horiontals and get into pay for the partis that are applicable to you.