I was just wondering if anything is going on in Payne County.. We did have a 3 yrs lease expired without any drilling about a year ago. Is there anything going on now. I heard when prices are low, people don't want to invest, is that the case haven't had any offers in a good while.
I would also like to know the going price for the lease, I have 45 acres, about 73 acres of mineral rights! contact info. paintertom954@yahoo.com
Payne county can be vastly different depending on where you are. The majority of the Wells that you will see drilled out there are not the giant horizontal rigs you hear about in other parts of OK, but parts of Payne have showed to be very economic.
Not to many Major's Leasing out there but there is some small area's of interest. But if your Ownership is clean they will find you if they are interested.
I would consider being very patient with this acreage, patience is often rewarded in these areas.
Are you also a landman or a owner.. I heard people aren't leasing because the prices are so low now. I am in no hurry, I did see the rigs when I was out there, to me they all look small. Not that I know much about it, living in Florida. I received a decent amount last time for what I was told. A friend that was in the business looked over everything for me last time, just made a few adjustments.
Thanks for your reply Ben
Tom
Tom I am both, but on here mostly I wear my owner hat.
Low commodity prices reduce the number of rigs that a company will have running. The lower number of rigs means they are focused on getting the land, that they already have leased, drilled so leases in their inventory don't expire. (go past the primary term)
if they do have a rig to spare then they are looking at the leases that that they have options to extend for a good value. Most of the time extending leases is a lot cheaper than taking new ones.
sometimes, when it is as bad as it is right now, companies just hold tight the best they can and don't do anything.
So when commodity prices get better rig counts will go up and companies will start going after new leasehold again. I think Payne county is a place that will experience growth in the next O&G growth cycle (maybe next time you come out the rigs will be bigger).
It is great that you have help with Lease review, always let someone see first. These companies get tricky and hide stuff so you gotta watch em.
BC