Bryan county Oklahoma

Oil and Gas Leasing Help
1

Just received a lease offer for Bryan county Oklahoma Sec 33 6S-13E. my first lease offer in that area in years. What is the back story? Recent wells, Stack Scoop ???

2

Welcome to the forum!
SUCO Energy Partners extended some leases in late 2017 for three years. The only recent regulatory application had orders for a location exception in section 26. Permit for a Horizontal well.

Chesapeake drilled a dry Woodford horizontal well back in 2008 on the far east side of section 33.

This is not SCOOP or STACK. They are on the western side of the OK in the Anadarko Basin. This is probably far southern Arkoma or another basin I need to look up.

3

Thanks for your response Bryan co Oklahoma. lease offer again: I appreciate you reaching out. We can offer the following terms to lease the minerals you own in 33-6S-13E.

Option 1:

  • $100.00 per net mineral acre
  • A lease royalty of 1/8
  • Primary term of Three (3) years + Two (2) year option to extend

Option 2:

  • $75.00 per net mineral acre
  • A lease royalty of 3/16
  • Primary term of Three (3) years + Two (2) year option to extend

I pushed for no bonus and 1/4 royalty interest and they declined - I do not like the 2 year option to extend - Would you decline the 2 year extension?

4

The 1/4 royalty is usually only found in the really lucrative areas of OK. Bryan Co not currently one of them. I personally never take the two year option. Also, you may need to negotiate the clauses in the lease as the first one they put in front of you is all in their favor. You will need to delete some clauses and add an Exhibit A with more favorable clauses to you such as no post production costs, a depth clause, commencement of drilling clause, time limit on shut in clause, etc.

5

Thanks for your generosity!