My father, brother and I recently received a letter from Calyx which proposes drilling on a land lease we have in OK stating a proposal of drilling on said sections (horizontal wel) to an approximate TVD of 4,275 feet and anticipated TMD of 8,500 or to a depth sufficient to horizontal penetrate or test the Woodford formation beginning at a surface location in the NE/44 of section 34-T17N-R4E and approximate point of terminus SE/4 of section bla bla bla. They want us to review or options respective to the well proposal, in which we have all done. Sp, could you please explain what it is they are exactly doing, and would they have already invested nearly 3MM if they were not positive there was a good chance of hitting something? Thank you for your time.
You didn't say what county. The Woodford has been real productive in Payne county. Unless you need the bonus money now, take the most royalty you can get.
Appears to be Lincoln County.
If you are already leased and that lease is still in force there shouldn't be any options left to choose. Are you the surface owners? I wouldn't say they are positive but with all the current technology you may see some disappointing results from time to time but rarely a dry hole. You didn't say what the $3mil was spent on but geologic studies and seismic testing over a large area of land it is well worth the investment. It could easily cost $500M and up to lease one section of land.
I agree Michael, it's hard to know what people who seem to be imitating landmen are talking about with their "lease". You can't tell if they are talking about minerals acres they own, whether leased or not, or acres they leased from someone else.
Landmen call it "your lease" because they always assume you will lease, because if you don't, they have not sicceeded in their job.
I think it most likely Jo is not leased or they probably wouldn't have received the letter they describe, but who knows?
"Imitating Landmen" LOL
Thank you Michael, thus far, the money has been spent on the equipment.
Michael Hutchison said:
If you are already leased and that lease is still in force there shouldn’t be any options left to choose. Are you the surface owners? I wouldn’t say they are positive but with all the current technology you may see some disappointing results from time to time but rarely a dry hole. You didn’t say what the $3mil was spent on but geologic studies and seismic testing over a large area of land it is well worth the investment. It could easily cost $500M and up to lease one section of land.
Thank you, sorry, let me clarify, it was land that my grandfather owned, when it was sold, he kept the mineral rights. We took the 1/5 option which was the most. Thanks for your feedback.
Go Fast said:
You didn’t say what county. The Woodford has been real productive in Payne county. Unless you need the bonus money now, take the most royalty you can get.
Sorry, you are correct, it is in Lincoln County.
Thank you, it is in Lincoln County.
Go Fast said:
You didn’t say what county. The Woodford has been real productive in Payne county. Unless you need the bonus money now, take the most royalty you can get.