Lane County, KS - Oil & Gas Discussion

Comment

Comment by John Jameson on April 23, 2012 at 6:20pm

Sandridge, Encana, Apache, Cheyenne/Tug Hill, Scout/Larson, are the major players in Lane County. I haven't seen Noble yet.  Yes prices are starting to creep upward to $200/acre 3-2 3/16th. 

Comment by Tom Bay on March 15, 2012 at 7:07am

Oil and the only large players in that are noble and encanna

Comment by Paul Mark on February 27, 2012 at 2:15am

I heard today of an offer of $250 bonus for a 3-yr lease with 3/16 royalty +$300 bonus for a 2-yr renewal. Sandridge and Encana are both trying to lock in properties in Lane County.

Comment by Tom Bay on February 27, 2012 at 12:45am

It all depends on where you are located. Leasing bonuses have finally leveled out to where they should be in most counties. Kingman and Sumner got as high as $2000 per acre, but now are realistically around $450-600 in Sumner "being the higher of the two. Sedgwick 6 months ago we were offering 250-300, but now it is around 175-200 per acre. At the NAPE convention last week their were alot of KS prospects but not alot of them sold as of today. I think that they will go up if the actual success of the wells start showing good production. But, there have been a few rumors of terrible initial production, low volume, and it is scaring off alot of independent producers.

Comment by Don Hineman on February 17, 2012 at 10:31am

Yep, $200 is the new reality, Ron.  Some folks believe the good Mississippian horizontal drilling prospects roughly encircle the Hugoton gas field.  The Kansas action started in Barber, Harper, and Kingman counties, and then moved NW to Ford County.  Now the Western counties along Highway 96 are getting attention.

Comment by Ron Bahm on February 16, 2012 at 8:30pm

I have heard of $150-$200 per acre, 3/16 royalty and 2-3 year extension.  It has gone from $30 to $200 in about 1 year.  Don't know if these numbers are county wide but there is a lot of action.

Ron

Comment by Paul Mark on February 16, 2012 at 6:19pm

The picture we are getting is that now that leases have gone through the roof in other areas, operators will be focusing on cheaper locations to try to get in on the ground floor. http://superioroilandgas.com/mississippi-limestone-emerging-as-top-...

You're right, there is the hysteria factor :) Smaller operators have been drilling wells in Lane county for decades with moderate success. But the potential of horizontal drilling has changed the picture. Hope it also changes the reality once they start putting some wells down.

Comment by Charles Matter on February 16, 2012 at 6:10pm

Paul what are your thoughts on this mississippi play? Why have they all the sudden starting to go north with the leasing? Seems to be a lot of hype without any info. I still don't know what they are offering at this point. 

TC

Comment by Charles Matter on February 15, 2012 at 4:30pm

I have not had an offer but am curious what a good bonus and royalty should be in this area? What are they going after? Who are the operators?

TC

Comment by Paul Mark on February 10, 2012 at 7:28am

Interested in knowing how much is being offered for oil leases at the present time. Have you had an offer? Going rate was $10-15/acre; some are starting to offer a lot more.