Unsolicited offer in Section 26 T17N R12W
Hello all,
I live in South Bossier off of Caplis Sligo and about a year ago, a new well was drilled less than a mile as the crow flies from our house, and shortly after a pipeline was dug from that well to another location right behind my house. I am guessing the pipeline was laid due to the production of that new well, but I have never receieved one red cent from any royalties or anything.
I made a few calls to Aethon Energy and sent a few emails but I have never heard anything back. Our deed did transfer mineral rights and the person we bought it from also had the rights from the original developer, at least that what the regular clerk said at the courthouse when I checked in on it.
Anyways, never heard anything. Been living here two years now, and we get a postcard saying "Call now". Wife calls and they offer us $7,500/acre to purchase. I have done some research and talked to a few neighbors. One neighbor receives about $1300/month in royalties on a plot slightly bigger than mine. Is there any reason why I would want to sell my rights if this rig is producing? Also - who would I contact to get some of those royalties?
I admit I don't know much about this process but I'm a quick study.
Thanks for any advice you can offer.
-Wes
Views: 431
Replies to This Discussion
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Permalink Reply by Wes Merriott on
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So according to the map overlay, I'm in section 26, T17N, R12W. I didn't see any surface wells in my section, but 3 or 4 capped wells underneath me in my section.
I apologize for not know the terminology. The sections to the north of my have dozens of producing oil wells, closer to Jamerson Road and that area. I can only assume there is interest in our section just to the south of that active area.
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Permalink Reply by Skip Peel - Mineral Consultant on -
Wes, Section 26 was unitized as HA RA SUJJ. There is no well producing from 26, thus no royalties have been paid in that section. In the age of horizontal wells, surface locations often do not indicate the section being produced. Many wells are drilled on well pads located outside the unit that the well will produced. Are your minerals leased? If so, what is the royalty fraction in that lease?
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Permalink Reply by Wes Merriott on
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Thanks for the reply Skip. I don't currently have a lease, though I have only lived in this area for about 2 years. The company that wanted to buy our minerals was F.T.C. out of Edmond, Oklahoma.
Therr are no surface wells in our section, and no horizontal holes producing under the ground according to the DNR map overlay I used. Just to the north of us there is a ton of surface and underground activity.
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Permalink Reply by Skip Peel - Mineral Consultant on
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You're welcome, Wes. I'm not familiar with F.T.C. but there are so many mineral companies making offers that it's impossible to keep up with all of them. Every mineral buyer has a business model and F.T.C.'s may be to make offers in sections that are proven for economic Haynesville Shale but have no current development. I would suggest that you keep that letter and all the others you may receive. In the future you should be approached about a lease. Get the best terms you can and then wait to see how quickly development will commence. The value of your minerals will peak when there is public record indications of the intent to drill the section. Most buyers are focused on an early return on their investment and royalty income from first production.
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Permalink Reply by Wes Merriott on
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That makes perfect sense. I feel like I got a crash course in geology, the oil and gas industry, and contract negotiation from reading this site in the last several days. I appreciate the input and will keep ya posted.
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