Has anyone received any leasing offers in Oklahoma County Sections 20-24 in 11N 1E? Just got one for $50 for 3/16; seems awfully low. Would appreciate any perspective!
Vivian, we just received a well proposal from GLB Expl in 28-11N-1E. $50/ac & 3/16ths was their best opening offer as well. Will have to look around to see what’s going on in that area. Would you mind sharing who your offer was from?
Ours was also from GLB. Same terms.
I’ll be very interested to hear what you learn about what’s going on in the area. $50 seems awfully low!
Look on your well proposal offer. It should have an AFE (authorization for Expenditure) page which will list how deep the well will be and what the spacing is. This is shallow oil territory and the margins are small. No horizontals in the area yet. The spacing is probably for 80 acres. The current well in 28 is in the Hunton. What is the new one?
The last pooling in the area was back in 2014 and was for $150/ac at 3/16. Oil prices were close to $100 then, so you can see the difference.
I didn’t get an AFE page. It’s just a leasing offer – for $100 at 1/8 or $50 for 3/16.