Longfellow Energy (also going by Limestone Exploration) has permitted a salt water well in Sec. 3-20N-5W, which is the southwest offset to our land in 35-21N-5W, NE4.
Tim,
Their are some good wells coming in around Covington and I got $500 and 3/16 several months ago. So, I would ask for $650 and 3/16 or $500 and 1/5 and no extension. If they want an ext. Then you want $800 & 25%. They are trying to keep lease cost down, but I have heard of people getting $800 just south of you.
I just got back from the farm and their are a few pads being made, but I don’t know where they are going to get the water to drill as most ponds are drying up. They are drilling a salt water well just north of the Noble/Garfield line, not sure were the H well will be.
Good luck.
Any wells going in around the Hayward area?
Tim,
I have land near Hayward, Garfield Co, Noble Co, Logan co and a few other areas of the state.
The one near Hayward, I leased the first part of the year for $500 and 3/16 and marked out about half of there lease as they didn’t want to sign my lease.
I haven’t taken any less than $500 in the last year and I didn’t sign an extension. If they wanted an ext, my lease price went up. I did deal with Brannon Land Co and finally told them what I wanted. The next land I will be leasing is close to this area and I have already been offered $700.
Leases near the Logan - Garfiled-Noble Co line are going for about $800 and lots of people are getting 1/5 %. I don’t know anyone in your area that hasn’t already leased and most of them got about $450 to $500.
You can call OCC and ask Junior if he has records of what was paid for leases in your area, but that information may be 6 months old.
I don’t know how many acres you have, but if you have land next to where they are putting a salt water well, they are getting ready to drill in your area.
So, ask for twice what you want and they will come up if they need your land.
Also, they are buying the land at a cheap price for salt water wells, If you go to Logan Co mineral forum and check back about end of July, you will see where someone got $100,000 for 5 acres. Others are getting about $1,500 per month plus elec. meter per BB. People are getting about $10,000 to $15,000 per pad last I heard. So, don’t let them take you to the cleaners
We have 160 acres, NE QTR of 35-Sec21n, 5w
Tim,
Junior Freeman # is 405-521-2613
email: j.freeman@occemail.com
I guess I should tell you that most land people will offer less than they are willing to pay. They get to keep the rest of the money and they are trying to keep the bonus down to $300 to $350, so they can make more profit. But, if you ask for more, they will usually come up at least $100 to $150. Then if they really need it, it will go higher. If you don’t least and you get pooled, then occ will set the price they will pay, but usually you will only get 1/8, but that can change.
You wouldn’t happen to have Jr.s number would you Virginia?
Just received a Notice of Hearing for Drilling & Spacing Units for Sec12-T21N-R3W in Garfield, Co. for horizontal drilling. Anyone else get one of these? Any action required on my part?
My family owns mineral rights in Garfield county, Section 36, 21N, 3W. Does anyone have information if any companies plan to drill in that area, and if so, what the going rate is for lease bonus and royalties?
permit to drillGarfield: ARP Oklahoma LLC; Saluki No. 2-4H Well; NE1/4 NW1/4 NW1/4 NW1/4 (BHL) of 04-24N-07W; TD 5,819.
Garfield: LongFellow Energy LP; Peach 32 No. M4H Well; NE1/4 NE1/4 NW1/4 NE1/4 (SL) of 32-20N-05W; 190 barrels oil per day, 265,000 cu-ft gas per day; TD 9,808.
Devon has filed for spacing on sections 21,33,35-21n-3w. Pooling Order for 12 dated 11/26/12, ordered to offer $550 for 1/8 or 500 for 3/16th, they have permit to drill. Pooling for 26 dated 9/13/12,ordered to offer $600 for 1/8th or 500 for 3/16th also have permit to drill.
Limestone is the company that leased our land at 35-21N-5W, NE4 for $300 an acre in August. My brother in law said he talked to a dozer operator that works in that area and he said he had a contract with Longfellow to build 40 site pads in the area…
Ron,
I typed the legal wrong, It’s 36-21N-3W, Garfield.
The well in 4-26-3W is drilled, but I haven’t seen any report on how much it is making. I know they were just putting the salt water lines in a few weeks ago.
Tim
$300 A is a low rate for this area. I got almost twice that much a year ago and that was before they started drilling in the area.
Virginia info on 26 in post below your post. Will check on 36-21n-2w
Yes, we are west of Covington. We’re a mile west of Douglass (or what used to be Douglass)
Thanks for the info, Virginia. Let’s hope the area gets more active and I can make it up on the other end. What really sucks is that we have a quarter west of Covington that is held by production. We get about $400 a year in measly gas checks, and that’s it.
Tim,
Do you have any clauses in your lease? If the well isn’t producing good or they won’t off set it, you may be able to get some of the lease back. Depends on what you put in your lease.
I would say, lots of the wells in that area are making about that much if you have 100 percent of the mineral on the 160. That is what is so surprising that they are drilling H. wells and getting as much as 280 BBD or more in the area. But, I think most of them are still only making 50 to 80 BBD and once you divide that with 3 others in the section, it won’t be much. I think once we get pond water in the area and gas prices go up things will start picking up. I think lots of people are holding off investing right now as we don’t know what laws and tax rules may be changes.
Devon has filed a spacing for sections 12,13,15,19,22,27,20n-4w . The next step will be to file for Pooling which they have done in 14 and 23 which have wells . 14 drilled from 23 had first production 8/21/12 and tested 69 BOD & 326 MCF , 35/64 choke No report on 23 yet. The pooling order for 23 dated 6/27/12 ordered them to pay $250 for 3/16. Pooling for 14 dated 8/21/12 ordered $350 for 3/16.