Can somebody tell me what the bonus rates are going for in McClain County, OK for 1/8th royalty, 3/16th royalty and 1/6 royalty. All are for a 3 year term with a 2 year option to extend.
What section township and range?
Sections 14 and 23 07N-02W
I have interests in very good wells in T8N, R4W. Further, west has better results to date.
Also, all of my wells are Woodford/Mississippian producing formations. FYI, This year Validius Midcon are trying to get permits to drill various horizontal wells in the Deese formation near my wells.
I had an offer for 1/4 royalty and $2K bonus per mineral acre for McClain sections 4 & 5
That sounds like good terms. I’d try to put a depth limitation to the objective depth they plan to drill. Don’t lease for more than 3 years (2 Years would be better). Definitely don’t give lessee option to extend lease.
Bonus amounts are not public unless someone shares. The closest you can come is a pooling within the contiguous eight sections within the last 12 months. There are several pooling cases nearby, but don’t see any orders yet.
The highest royalties in the sections 15/22 were at 22%, with quite a few at 20%. Quite a few companies were in there leasing.
It would be wise to invest in a good oil and gas attorney to walk you through leasing as the draft lease offered by the operator will not be in your favor. The clauses in the lease are the critical elements, more than the bonus amount which is a one time thing. Most of us would like the highest royalty and the best lease clauses. The important clauses concern no post production charges, no options of extra years and quite a few more protection clauses.
The location of the those terms is important. Likely to get higher rates farther to the west than in 7N-2W.
Section 4 & 5 Township 7 North Range 4 West McClain County, OK. Attorney negotiated lease and no production charges and included depth clause etc…