I received an Oil & Gas Lease (paid-up) offer on my 1 acre of mineral rights I inherited in Blaine County Section 32-15N-13W for $ 2000 per bonus acre and 3/16 royalty ($2000.00) and $ 1750 per bonus acre and 1/5 royalty ($1750.00). Is this a fair lease price?
I’ll check my lease bonus records in that area but always take the largest royalty. This year, I’ve always gotten 1/5.
Thank you Debra - I appreciate you taking the time to look at your records and look forward to hearing back.
Dear Miss Diane,
A quick look at your township (15N, 13W) for the last twelve months shows the following pooling results:
sec 20 by Marathon, $2000 at 3/16, $1500 at 1/5 and $750 at 1/4.
sec 21 by Marathon, 1000 at 3/16, 750 at 1/5 with no value for higher burdens.
sec 25 by Cont Res, 1300 at 3/16, 500 at 1/5 and no value for higher burdens
sec 28 by Marathon, 1000 at 3/16, 750 at 1/5 and 0 at 1/4.
sec 36 by Cont Res, 975 at 3/16, 375 at 1/5 and no value for higher burdens
Stephen how much do you think I could get for a lease in Section 8 township 15 north range 10 west in Blaine . at 4 acres 1/8 intrest .
Out of curiosity, why aren't you HBP'd by the existing wells in the section? Based on what I'm seeing the Springer and Morrow are both spaced on a 640. Were you pooled or did your original lease have depth/formation limitations? Has Annastin shed any light on that issue. In general I would think you're HBP'd. It's better for you if you aren't.
Mr. Paxton - what does HBP's mean? This is the first time ever receiving a lease offer on these rights. t
Here is the info Annastin provided - does this info help?
The Landman has shared the following information with me on this section:
“…we are only looking to lease the "deep rights" in this section. What that means is, since there is already a producing well in this section, we would be leasing the rights under the producing formation. There has been a well in this section since the '70s, but it is just a shallow vertical well that is producing from the Morrow formation. There is no operator yet, but whoever drills will, in my opinion, be drilling a horizontal well to the Woodford formation. Continental has filed pooling hearings in two of the offsetting sections, 31-15N-13W & 6-14N-13W, which in my opinion shows their intent to drill in this area very soon. I know the hearing for 31-15N-13W was scheduled for some time in August, but got pushed baked to January of next year. I would not be surprised to see a hearing filed in this section sometime soon. If that happens, they will pool any unleased owners in this section for a lot less money and a lower royalty than we are offering. Generally the pooling offers are for about half the bonus and royalty amount.
HBP means your lease is held by production. Their response jives with my assumption. If you never had a lease then you were previously pooled which explains why you have open zones for lease. The last 2 sentences are nonsense to try and prod you to make a decision. Time is on your side.