In Sedgwick, you will seriously be lucky to get $100.00 an acre. Companies are looking to lease in more oil rich areas such as Sumner,Cowley and Harper.
They already offered $300 per, and 3/16. They are just moving North now following the Shale formation. Which will include Sedgwick. Just now hearing my neighbors getting offers too. I think I asked the question too early. From what I am reading south of me they are getting around $650 and 20%. Some less, some more. I am just wondering if that is the number to hold out for.
Hold out for a number you are happy with getting or hold an auction. What an operator will pay will depend on what their geologists think of your area. If you are in the area where Shell and other big companies are chasing the Mississippian, time is on your side so grant a short term lease without extensions and make certain the royalty offered will not be compromised.
I am just trying to gather info right now. This was a Co representing a Co out of Tulsa. But the Farmer South(2 miles) was approached by someone else. So it looks like they are moving North. The City of Wichita just announced an auction for 120 acres they own that is 10-12 miles East of me. This forum isnt so helpful if they havent been through your area yet. As far as pricing anyway.
I am an out of state land owner. I was called about a week ago from a landman offering $350/acre x 3 yrs with a 2 yr. option also at $350/acre, 3/16 royalty. My land is located in the SW corner of Sedgwick County (aprox. 6 mi. N of Sumner n 6 mi. E of Kingman COs.).
Has anyone else been approached recently or have recent information re this area's $$/acre or royalties?
I have property in SW Sedg Co and have been contacted regarding a similar lease. I would be interested to talking with other land owners in the area to discuss what terms are being accepted? My broker just indicated some stuff is negotiable and some is not.
Bob, Like I said we settled for $350 per acre with 3/16. They did allow us to block about half the acreage from being drilled on. That was about all I could get. I did a poor job Im afraid, but I was glad that it was Shell Oil. They have a good reputation. bob S said:
I have property in SW Sedg Co and have been contacted regarding a similar lease. I would be interested to talking with other land owners in the area to discuss what terms are being accepted? My broker just indicated some stuff is negotiable and some is not.
I am a little frustrated with the first contract sent over. I think they just send that first contract that gives THEM all the bennies and hope you sign it. Unfortunately I think this contract needs rewritten from scratch.