I have been approached by Capstone Land to lease for $625/nma and 1/8 or $550/nma and 3/16ths. I don’t see any other recent postings about this tract and this is better than what Capstone most recently offered in another tract. Any information about nearby offers appreciated.
Personally, I always ask what they are offering for 1/5th and 1/4 just to see what they say, I would much prefer a 1/5th or even better a 1/4 lease. Depends upon the area. If you have not leased in a while, it would be wise to get an oil and gas attorney to look at the draft lease as it is not usually in the mineral owner’s favor and needs some important edits.
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Thanks so much. I always appreciate your expertise.
I received the same offer from Capstone for 22-07N-02W. Is anyone else leasing in this section?
Jackfork is also leasing. HIghest royalty posted is 20%. Lease bonus amounts are not public. I look at poolings for a general idea since they are public. Limerock leased in 2022 for $325 1/8th, $300 3/16, $0 1/5th.
FYI, a large group of individuals in our family and some distant relatives signed leases for minerals in sections 17, 20 and 29 in McClain County for $750, 3/16ths with Jackfork
I have an offer for $550 with 3/16s. I asked for the number with 1/4. He said the max they’re doing is 3/16.
I got a call from Captstone about leasing in 9-7N-2W. They plan to drill a horizontal well in the Woodford. There are currently two vertical producing wells in my quarter. How can they drill into an area currently held by production? One of the existing wells was permitted for the Woodford formation. What happens to the royalty owner share of production in this case?
If you have a current lease, review the same for wording on formations held by production. If you are pooled, read the pooling order to determine what zones are pooled. Check the spacing for the Woodford in your quarter section. A quick review shows the Woodford in the SW/4 to be spacing on laydown 80 acre. The spacing can be changed for horizontal wells thereby allowing for additional wells in an existing producing formation. The royalty owners share of production will be allocated throughout the entire section, assuming the new horizontal spacing to be 640 acres or the entire section.
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