We leased this section 3 years ago and it looks like our lease will be up before drilling begins. Since everything has escalated in this area, were wondering how much leases were going for per acre in this part of Blaine.
31-15N-11W has an "Intent to Drill" filed 6 days ago. Depending upon the wording of the lease signed, you may not be able sign a new lease. Some of the best leases require a rig, on site, capable of drilling the well in order to hold the lease. Some of the worst require only a surveyed stake in the ground at the proposed site. Just pointing out that when "drilling begins" can mean different things, and it varies lease by lease on whether a new lease will be required.
Thank you JW. Our lease is such that we will be leasing again. We were just wondering how much bonus money had gone up since Blaine is such a hot spot now.
Angela, I have minerals in this section as well.
I have received numerous offers, and the last unsolicited offer I received was for $2750/acre for 3/16. So, yes, considerably higher than 3 years ago. You might do better.
I looked at your lease with Devon, which expires this Sunday. Your "commencement" clause looks like this:
"Drilling operations or mining operations shall be deemed to be commenced when the first material is place on the leased premises or when the first work other than surveying or staking the location is done thereon which is necessary for such operations."
It doesn't take much to claim that the well has commenced in this case. If you have been approached by Devon for a new lease, that is a good sign. If you live in the Watonga area, you may well know whether the site has been prepared and what the status of the site is, so that you can determine when the well has "commenced". A lot can happen in a week.
The most recent pooling in the 15N-11W township and range was in Section 15, being pooling order # 658697. It had the 1/5th royalty option at $1,500.
As your last lease contained a top-lease clause remember to hold off on signing anything until the 18th.
To generally answer you question, prices have increased significantly and even more so for your section now that they filed the intent.
I also looked at it and agree with JW that depending on what Devon has done they might claim that they've commenced operations. Just something to be aware of as you negotiate.
Thank you to everyone for the information. I really appreciate the " heads up" on what to look for. There's so much to know! After being in the classroom with first-graders all day, I need all the help I can get.
Angela, if you want to email me particulars on your interest I’d love to help. M.casey@patriotfsok.com
Hi Angela Richardson. In a quick review of your case, it is my best guess that Devon will claim you lease is
under development. Marathon is going to the be operator of the Alta BIA unit well, being a multi-unit well combining Section 31-15N-11W with Section 6-14N-11W. I am from Watonga, having graduated in Craig Gurney's class in 1974.Give me a call at 405-206-1112 to discuss further or e-mail me at .Respectfully,
Todd M. Baker
640-AltaBIAMarathonSec.3115N11WSec.614N11WBlaineCo..pdf (62 KB)