I am a little surprised at the lack of lease activity in McClain. I am guessing companies are just taking a “wait and see” approach ? Maybe new leasing will happen in 2022. Oil looks pretty strong. Opinions ?
Leases in McClain
1/1/19-12/31/19-4088 (1/1/19-4/23/19-2285)
1/1/20-12/31/20- 724 (1/1/2020-4/23/20- 443)
1/2021-4/23/2021-1441 so more leases this year than all of last year.
The leasing will depend upon the location, location, location, tracts available on the market, pricing models by leasing companies/operators, companies transferring leases to other companies, bankruptcies, etc. As more and more tracts are tied up by production then those tracts are not available to lease except if they have depth clauses or poolings at certain zones and other zones become attractive. Some tracts will roll off production and may or may not have continuing interest so may or may not get offers. Over time, reservoirs of interest change according to perceived value, technology, economics, etc.
Many companies are being cautious as they come out of the recent downturn. Their financial providers are demanding free cash flow over the growth models from a few years ago.
New Production McClain
New production 1/1/2019-12/31/2019- 53 (1/1/2019-4-23/2019-14)
New production 1/1/2020-12/31/2020-24 (1/1/2020-4/23/2020-12) Covid downturn
New production 1/1/2020-4/23/2021-0, many are active but no production reports yet
New Permits McClain new permits 1/1/19-1/31/19-127 (54 1/1/19-4/23/19)
new permits 1/1/20-1/31/20-46 (24 1/1/20-4/23/20)
new permits 1/1/21-4/23/21-8
Time will tell…
(Data only as good as the collecting agent)
Thanks. I think their interest is in the Western part around 4W. Things have to get rolling before they like any of mine at 2W 1W or 1E !
Wouldn’t hold your breath Joe. The Woodford pinches out there so gotta have much higher prices to be economical.
Ditto. Location, location, location. There is no Woodford at all on parts of the Paul’s Valley uplift. What is your township and range?
That is what I am hoping for !
Some in Cleveland and some in McClain.
Quite a lot in 7N 1W, 5N 1E, 6N 1W , 8N 1W. I have some more on another list. I am really close to some action on that 6N 1W location. If we get some $100 oil I think they come back into play. I have leased a lot of them previously. There are wells all lined up on that 7N 1W area also, would not be shocked if it came into play. Looks like inflation could come on strong so I am not giving up !
McClain Woodford has been proven uneconomic far too many times now. If I were offered a good lease in the majority of 2W, 1W, 1E, I’d take it. Humble opinion of an in oil and gas newbie 
.
When it hits $100 a barrel a lot of places become economical.
Joe- When there is no oil to be found, it doesn’t matter what the price is. This area has been tested for the Woodford and it is either not present or not productive so price of the product doesn’t matter.
As a novice, I also have concern for the oil maturation in that area as it is considerably shallower than west McClain Woodford, courtesy the Nemaha uplift.
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You say that, and they will be leasing next year. And there are straight wells pumping all over those areas.
We got paid a lot of money in those areas !
And the area was drilled & the wells were no good. But good luck.
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