Energy Industry (Oil & Gas)/Carter County, Okla, Activity

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Question
I own mineral interests in 7.5 acres in Sec 27 only. Since the start of 2013 at least 17 different companies have contacted me regarding my interests in Sec 27. Most wanted to buy but since I don't sell my mineral rights I ultimately signed a 3-yr lease with Bearcat Land.
Over the last few months,Continental Resources and XTO Energy have filed paperwork with the Okla Corp Comm regarding horizontal drilling and spacing units in both sections.
My question is this: with all the activity mentioned above, does this mean they've actually found something promising in section 27 or is this just ordinary, routine behavior and doesn't really signify anything?  Thanks for your help.

Answer
When 17 companies contact you within six months (whether to lease or to buy0; that would indicate there's something going on worth looking at.

The Oklahoma Corporation Commission (the regulatory body for oil and gas in Oklahoma) has a wealth of information available online relating to oil and gas activity and production in Oklahoma. You can look up such things as drilling permits, recent production information, well completion reports, forced-pooling orders, and anything else that falls under their jurisdiction.

The activity you speak of simply means that they have applied to drill a well in your section. Whether they will or not remains to be seen, but it's more likely than not since they bothered to apply for a drilling permit.

Lots of old, fairly poor oil and gas wells in this immediate area. If one of the "new" wells ends up being a barn-burner then of course your rights will be worth a lot more than they are now. If not, then the opposite could be true. Selling is a risk for both buyer and seller in these cases. You risk that a good well will be drilled and you'll be sorry you sold, while a buyer risks a well won't be drilled at all and operators will lose interest in the area, thus decreasing the value of the purchase.

My feeling is nothing spectacular is going to be drilled close to or in 27-3-3 anytime soon, so if you receive a good offer to sell (even though they're leased) I'd consider it unless you're willing to wait to see if they drill a well, and if they do, how good it is. I hope you got at least $150/acre to lease these.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
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Energy Industry (Oil & Gas)

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Frederick M. Scott

Expertise

Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience

I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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