Thanks, Tim and M. Barnes ! …I will be keeping an eye on all this.
Activity picking up in 15N-10W. Make sure you get good leases and a good Exhibit A.
What is the contact for Superior ?
Penterra is currently leasing for Felix in 15 N-10 WIM.
Superior is leasing in 15N-10W for Dale with excellent offers.
Brent Smith 580-393-4314
Superior Resources PO Box 790 Sentinel, OK 73664
You had best contact him quickly. The pooling orders came out on 15-15N-10W on May 19, so only about 10 days to get to him, get a lease and get it filed before the pooling deadline of 20 days.
Sorry, had to log off when the storms hit last night.
Marathon drilled a Woodford well in sec 3-16N-11W in 2011, so there is production nearby. Newfield, Marathon, Cimarex, Devon and Continental have extensive acreage leased all across Canadian County and Blaine County. You might want to read up on the recent Newfield and Continental investor presentations regarding the SCOOP and the STACK. Multiple horizons with pay in them.
A lot of land companies are out there offering generic buy offers as speculators. They are trying to pick up acreage while prices are low. I get offers all the time. Generally, I file them in the appropriate folder and ignore them.
An offer to buy my mother’s mineral rights at $3450 per acre if leased on 1/5th Royalty is coming. Please explain what “1/5th Royalty” means in layman’s language. Are rights in Section 4, Township 16N, Range 11W worth selling now? Thank you!
1 Like
Dennis, A lease for 1/5 of the royalty produced by your mother’s mineral rights would be a pretty good deal. The people trying to buy your mother’s mineral acres intend to make money by purchasing them. Personally, I will never sell minerals, just lease them out.
What they are asking for is to buy all of the mineral rights for that price per acre only if she is already leased for 1/5 th royalty and not 3/16th. Royalty is the amount of money you are paid when the oil and gas are sold. If you have 10 acres and the spacing is 640 ac, and you have a 1/5th (20%) royalty then you would get a payment of 0.00555556 for each dollar of product sold.(10/360 x 20%) Now, you have to ask yourself if the price offered is reasonable. The short answer is probably not. Everyone is in the business to make a profit. Generally, the first offer is about half or less of what the property is worth. Blaine county is heating up with horizontal drilling in multiple zones. Another thing they are probably not telling you is that they discounted that offer since you might have already been paid a bonus per acre. Another thing is they might know that a well is about to be drilled. How much would a comparable well in the area make? How about if they end up drilling nine wells on the section which they are doing just south? Then that is a whole new value. Read what they have to offer, but my advice is not to sell. Or just sell part.
My brother in law who lives in Loyal tells me that 18 more locations are being staked around us, which is near the town of Loyal down south past highway 33. We are near the Kingfisher/Blaine County line. Newfield just started drilling 1/8 of a mile from our land. Here’s a picture of my pond and their well. I hope they buy some frac water from me. I’m ready now. A few months ago I was near dry on the same pond.122.jpg
HOLD OUT!
The drilling is picking up in multiple zones including the Woodford and the Meramec formations. Do not do anything until you get well informed. Read over the last six months or so on this forum. You might want to read Canadian County as well. Also go on the web and get the most recent investor presentations for Newfield, Continental Resources, Marathon Oil, Apache, Cimarex etc. Read about the area called the CANA Woodford and the SCOOP and the STACK areas. Horizontal drilling means that you might have one well or you might have up to 12 wells drilled. The value of these offers is nowhere near what the minerals are worth.
Located your minerals on this map and use it as you read different articles.
Thank you, M. Barnes for the info. I can see that I have a lot of learning to do!
I inherited mineral acres from my grandparent’s in Blaine County. I receive small checks, but recently have started receiving buy offers. The offers have gone from $2000 per mineral acre to $7000 per mineral acre in a short amount of time. One of my cousins has received a “we will beat any offer you have in had” verbal offer. Can anyone comment on what is going on? We know that horizontal drilling is going on nearby and a pipeline is being laid under what we called the “home place.” The property is North East Quarter (NE1/4) of Section Twenty-Nine (29) in Township Seventeen (17) North, of Range Ten (10) West I.M. Is this a good time to consider selling or should I hold out for things to come?
Trent, you should be getting paid on the Wright 1-13H well which was drilled in the Woodford in 2011. Nothing new since then.
My family has a small interest in section 13-15n-10w in Blaine County. Received a lease offer for $2,500 acre 1/5 royalty. Can anyone help me as to going lease figures in this area? Thanks
j Temm:
A very recent pooling order in the general area (section 15-15N-10W) paid $1300 for a 3/16 lease and $1200 for a 1/5 lease. As you can tell, things have heating up in that whole area during the last few weeks. $2500 is a nice rate to be sure, but you always make a counter offer and see if they are willing to go even higher.
The highest recent pooling order I’ve seen in the general area was $4500 for 3/16 and $2750 for 1/5, but that was over 10 miles away.
Individual lease amounts can be higher if you negotiate well, or if you are able to do a multi-section lease.
Perhaps some of you Blaine County oilfield observers can shed some light on 3-18-13 and it’s potential for production. We have had 2 recent inquiries/offers for leasing these mineral rights. My question is whether any known seismology, etc. gives any clues as to what might be under that section ?
Old production in the area was in the Morrow. I suspect that the Woodford or Hunton or Miss Lime may be in the future. Don’t be the first horse out of the gate to lease…
Thank you M. Barnes, I appreciate that information.