What I have noticed from this forum is that there are many people, just like myself, who are novices to the inner workings of how this leasing business really works. We have all been approached about leasing our mineral rights, and some of us, who have already come to what we believe are satisfactory terms, are now wondering what happens next. Questions like: ( 1 ) Are they actually going to drill, and if so , when?? ( 2 ) What is a pool, and how does a pool work? ( 3 ) What are they after....? ( gas, oil....both ) ( 4 ) Who are the major players in this area ? ( 5 ) What type of drilling might we expect to occur? ( fracturing, directional, etc....) If there are other novices like myself who would just like to get some insight into what we are dealing with.
Zachary:
I will begin by asking where your minerals are located, (State, Township/Range/Section). After a lease is signed, the Lessee will have the term of the lease (in years) to either drill, sell the interest to another operator or participate in a well on the acreage which would have to be included in a spacing unit. The Lessee does not always drill the well as mentioned in the previous statement. The time range on drilling depends on several things including the production performance of other well in the proximity of the minerals, the availability of equipment and the amount of time before the lease or leases will expire. In regards to what they are drilling for, it depends on the area where the minerals are located. Example, the Bakken Shale Play in North Dakota is primarily oil while the Barnett Shale Play in Texas is primarily gas. The major players in areas varies depending on the area. There are different operators in the Eagle Ford Shale play in South Texas as oppossed to the Marcellues Shale Play in the Pennsylvania area. In most shale plays, horizontal or directional drilling is widely common as the results of this type drilling is so highly successful. In conclusion, if you have leased your minerals, you will play the wait and see game until the lease nears the expiration date. At that point, if no well has been drilled, you may be contacted in regards to "top leasing" your minerals whereas at the end of the primary lease, another lessor that you have negotiated a lease with, will take over control of the lease.
My rights are Section 7, Township 1North-Range 6 West in Stephens County, Oklahoma. Thank you, Mr. Mallory, for your very informative reply.
Zach Mann
charles s mallory said:
Zachary:
I will begin by asking where your minerals are located, (State, Township/Range/Section). After a lease is signed, the Lessee will have the term of the lease (in years) to either drill, sell the interest to another operator or participate in a well on the acreage which would have to be included in a spacing unit. The Lessee does not always drill the well as mentioned in the previous statement. The time range on drilling depends on several things including the production performance of other well in the proximity of the minerals, the availability of equipment and the amount of time before the lease or leases will expire. In regards to what they are drilling for, it depends on the area where the minerals are located. Example, the Bakken Shale Play in North Dakota is primarily oil while the Barnett Shale Play in Texas is primarily gas. The major players in areas varies depending on the area. There are different operators in the Eagle Ford Shale play in South Texas as oppossed to the Marcellues Shale Play in the Pennsylvania area. In most shale plays, horizontal or directional drilling is widely common as the results of this type drilling is so highly successful. In conclusion, if you have leased your minerals, you will play the wait and see game until the lease nears the expiration date. At that point, if no well has been drilled, you may be contacted in regards to "top leasing" your minerals whereas at the end of the primary lease, another lessor that you have negotiated a lease with, will take over control of the lease.
Zachary:
You might want to also post and read the posts on the Stephens County, OK section of this forum. Click on "Groups" above; click on "County Groups"; find Oklahoma and Stephens County is listed under this; these are individuals with interests in Stephens County, OK.
Zachary Mann said:
My rights are Section 7, Township 1North-Range 6 West in Stephens County, Oklahoma. Thank you, Mr. Mallory, for your very informative reply.
Zach Mann
charles s mallory said:Zachary:
I will begin by asking where your minerals are located, (State, Township/Range/Section). After a lease is signed, the Lessee will have the term of the lease (in years) to either drill, sell the interest to another operator or participate in a well on the acreage which would have to be included in a spacing unit. The Lessee does not always drill the well as mentioned in the previous statement. The time range on drilling depends on several things including the production performance of other well in the proximity of the minerals, the availability of equipment and the amount of time before the lease or leases will expire. In regards to what they are drilling for, it depends on the area where the minerals are located. Example, the Bakken Shale Play in North Dakota is primarily oil while the Barnett Shale Play in Texas is primarily gas. The major players in areas varies depending on the area. There are different operators in the Eagle Ford Shale play in South Texas as oppossed to the Marcellues Shale Play in the Pennsylvania area. In most shale plays, horizontal or directional drilling is widely common as the results of this type drilling is so highly successful. In conclusion, if you have leased your minerals, you will play the wait and see game until the lease nears the expiration date. At that point, if no well has been drilled, you may be contacted in regards to "top leasing" your minerals whereas at the end of the primary lease, another lessor that you have negotiated a lease with, will take over control of the lease.