SEALED BID AUCTION

STACK MINERAL SALE: BLAINE & KINGFISHER

BLAINE & KINGFISHER PRODUCING STACK MINERAL SALE

This Mineral Offering by Kelly family Trusts is a unique opportunity to acquire a revenue-generating asset -under Record Setting STACK Multi-Unit Pads- which also has future development potential.

At a Glance

  • 927 Net Mineral Acres under apr. 1072 Gross Acres
  • All acreage leased – Most terms: 3/16, w/Industry Standard Clauses- Depth, Pugh, No-deductions, etc.
  • 20 Producing Horizontal Wells, majority drilled within last 12-18 mos.
  • Large tracts with 100% mineral ownership
  • Current production operated by Continental, Marathon, Triumph, Devon and Pride Energy
  • Multi-Unit Regulatory Activity & area trends indicate further production to come.
  • Revenue (All wells):
    • 6 mos. (11/2019-4/2020): $2,448,473
    • April 2020: $131,099
  • Data can be requested:
    • Ellis-Johnson Engineering Report -dated June 2020
    • 24 months production history
    • Itemized inventory w/NMA, NRI, Run Statements, etc.
  • Reserve will reflect market conditions.

Sealed Bid Auction CLOSES Tuesday, July 14, 2020, 2:00pm CDT

ALL-IN-ONE PACKAGE DEAL: Winning bidder will be highest offer for entire package which meets Reserve.

 

Contact us for more detailed information, including:

  • Production History
  • Engineering Report
  • Title Documents

Contact

Lee@GastonOilGas.com
918-758-0008

Kelly Auction
c/o H.L. Gaston III Oil Properties, LLC
P.O. Box 212
Okmulgee, OK 74447

Bidding Instructions

  • Highly advised that bids be submitted by certified mail and/or bidder status verified before Auction date. Phone and email bids are accepted but may be disregarded if validity of bidders cannot be confirmed within outlined deadlines.
  • If Reserve is not met, top 10 verified bidders will be notified and given opportunity to increase bid.
  • This is an All-In-One Total Package Auction. Bids should be on entire package deal. Highest total package single bid to meet reserve will win out. Individual Tract bids may be submitted. In event Reserve is still not met after contacting top 10 single-package bidders: bids for individual tracts may be reviewed, however this is a Good Faith offering for ENTIRE SINGLE-PACKAGE DEAL.
  • ALL bidders should be verified by submission of a "Letter of Credit", or like instrument, from recognized financial institution, verifying availability of funds to meet 10% Escrow Requirement. Bids lacking verification may be accepted, but timely verification of bid cannot be guaranteed, and SELLER will make limited effort to do so out of deference to verified bidders.
  • Upon verification, successful Bidder will be required to sign Purchase & Sale Agreement immediately following the close of the auction. Verified bidders may request copy of PSA prior to Auction.
  • Buyer will have 72 hours – COB July 17, 2020 – to deposit escrow funds in amount of 10% of bid price.
  • Buyer will have until August 13, 2020 to conduct Due Diligence. Closing will take place on, or before, August 14, 2020 and sale will be made Effective to August 1, 2020
  • SELLER WILL MAKE EVERY REASONABLE EFFORT TO CONTACT WINNING BIDDER USING CONTACT INFORMATION THEY WERE PROVIDED. WINNING BID MAY BE FORFEITED FOR ANY OF THE FOLLOWING REASONS:
    • CONTACT CANNOT BE MADE WITHIN 2 HOURS OF CLOSE OF AUCTION – by 4:00PM CDT, July 14, 2020.
    • PROOF OF ESCROW FUNDS CANNOT BE VERIFIED IN TIMELY MANNER (BY CLOSE OF BUSINESS 7/14/20) AND TO SATISFACTION OF SELLERS
    • ESCROW FUNDS, AMOUNTING TO 10% OF BID PRICE, HAVE NOT BEEN RECEIVED WITHIN 72 HOURS.
    • PURCHASE & SALE AGREEMENT CANNOT BE EXECUTED WITHIN 72 HOURS

FOLLOWING CONDITIONS ARE MADE BY James Wagner Kelly Trust, Blanche C. Kelly Trust and their trustees and agents, particularly H.L. Gaston III Oil Properties, LLC. Any indication to contrary, whether expressed or implied, by afore mentioned parties will not be binding against these stated conditions (hereinafter "SELLER" refers to above listed parties):

CONDITIONS OF SALES

  • SELLER WILL MAKE EVERY REASONABLE EFFORT TO CONTACT WINNING BIDDER USING CONTACT INFORMATION THEY WERE PROVIDED. WINNING BID MAY BE FORFEITED FOR ANY OF THE FOLLOWING REASONS:
    • CONTACT CANNOT BE MADE WITHIN 2 HOURS OF CLOSE OF AUCTION – by 4:00PM CDT, July 14, 2020.
    • PROOF OF ESCROW FUNDS CANNOT BE VERIFIED IN TIMELY MANNER (BY CLOSE OF BUSINESS 7/14/20) AND TO SATISFACTION OF SELLERS
    • ESCROW FUNDS, AMOUNTING TO 10% OF BID PRICE, HAVE NOT BEEN RECEIVED WITHIN 72 HOURS.
    • PURCHASE & SALE AGREEMENT CANNOT BE EXECUTED WITHIN 72 HOURS
  • SELLER WILL MAKE EVERY EFFORT TO CONTACT ALL BIDDERS WITHIN 1-7 BUSINESS DAYS TO INFORM THEM OF STATUS OF THEIR INDIVIDUAL BID. NO OTHER INFORMATION MAY BE PROVIDED.
  • ALL PROPERTIES ARE SOLD “AS IS, WHERE IS”, WITH NO WARRANTY, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF TITLE FOR ANY PARTICULAR PURPOSE OR MARKETABILITY.
  • SELLER RESERVES RIGHT TO POSTPONE OR CANCEL SALE FOR ANY NUMBER OF REASONS INCLUDING, BUT NOT LIMITED TO: DELAY OF FIRST-CLASS MAIL DELIVERY ON AUCTION DATE, ACTS OF GOD, EXTREME MARKET CONDITIONS, EVENT OF PANDEMIC OR CATASTROPHE. HOWEVER, SELLER WILL ACT IN GOOD FAITH AND MAY CHOOSE TO PROCEED WITH AUCTION AS ADVERTISED, DESPITE LIMITING CONDITIONS.
  • NO WARRANTY IS MADE WITH RESPECT TO THE ACCURACY OF ANY INFORMATION PROVIDED TO BUYERS REGARDING PROPERTIES, PROVIDED IN WRITTEN OR IMAGE FORM AND BUYER SHOULD NOT BASE THEIR BIDS SOLELY ON INFORMATION PROVIDED FOR BUYERS’ CONVENIENCE. THIS INFORMATION INCLUDES, BUT IS NOT LIMITED TO, ENGINEERING REPORT(S), QUANTITATIVE & QUALITATIVE INFORMATION REGARDING MINERAL INTEREST(S), NET REVENUE INTERESTS, STATUS OF OIL & GAS LEASES COVERING DESCRIBED LANDS, OR ANY OTHER MATERIAL PROVIDED FOR INFORMATIONAL PURPOSES.
  • SELLER WILL CONDUCT AUCTION IN GOOD FAITH BUT, AT THEIR SOLE DISCRETION, RESERVES THE RIGHT TO DECLINE ANY AND ALL BID OFFERS.