Our last lease on 1.5 NMA recently expired in this Section and Todco Properties is now interested. This has never been leased for less than $500/ac for 3yrs & 3/16...most recently for $1000/ac in 2010. Just wondering what kind of offers others are getting lately.
Joan,
I recommend for that sized acreage you ask for $2000 bonus and 1/4 royalty and a check before you send the signed lease back. Everybody will be happy if the deal is simple and easy to do. The operator will save time and money and so will you.
Gary L Hutchinson
Minerals Managment.
Wow, I was thinking that 1.5 acres was not a lot to bargain on. I know that general area is very active…at night the countryside glows from the rig lights. I haven’t been this far south of Hwy 33 in a while though, so I’m not sure what’s going on right around Sec 32.
Give me the Township and Range and I'll try to do some research for you.
Gary Hutchinson
Joan Kershaw Putnam Trust said:
Wow, I was thinking that 1.5 acres was not a lot to bargain on. I know that general area is very active...at night the countryside glows from the rig lights. I haven't been this far south of Hwy 33 in a while though, so I'm not sure what's going on right around Sec 32.
Oh, sorry, it is 14N-23W. Thank you! I’m trying to find my way around on the Corp Comm database…definitely a learning curve.
Gary L. Hutchinson said:
Give me the Township and Range and I'll try to do some research for you.
Gary Hutchinson
Joan Kershaw Putnam Trust said:Wow, I was thinking that 1.5 acres was not a lot to bargain on. I know that general area is very active...at night the countryside glows from the rig lights. I haven't been this far south of Hwy 33 in a while though, so I'm not sure what's going on right around Sec 32.
Joan,
There are at least 12 horizontal wells permuted and perhaps some are drilling within 4 miles and in all directions of your section 32. All good players in the area. Linn, Samson, Apache, Chesapeake. The latest completions have been from the Upper and Lower Tonkawa Formation. A few miles to the North on the Ellis county line, where I have some acreage, a significant Tonkawa Development is currently underway.
If you feel the Trust can take a little gamble, consider holding off leasing until your section is permitted then make a farmout deal or participate depending on completion success of wells developed closer to you. It is risky but the reward will be about 4X the lease income.
Gary Hutchinson
Well, well, well, Gary…I just got a call offering $2000/ac and 3/16 for 3yrs. I asked for 1/4 and he’s “speaking to his boss” about a quarter or less bonus and 1/5. Must be something cooking up there…or you’re psychic 
Good advice! We have interests in Ellis Sec 19 & 30-17N-24W with Accr & Riparian rights…been paying for forever it seems. More north of Arnett and then north of Gage. We also deer hunt out there…had to break down and by an RV because the hotels are always full! Drill baby, drill! Thanks for your help Gary!
Another reason to think about farm outs vs. leases is the multiple zone development on this the NE shelf of the Anadarko Basin. I love the diversity and opportunity. Geology is the key to making fair deals.
My wife is from Alva OK in Woods County. When she visits friends it is difficult to find a place to eat let alone a place to stay.
You are in a good area, make well informed decisions
Joan Kershaw Putnam Trust said:
Good advice! We have interests in Ellis Sec 19 & 30-17N-24W with Accr & Riparian rights...been paying for forever it seems. More north of Arnett and then north of Gage. We also deer hunt out there....had to break down and by an RV because the hotels are always full! Drill baby, drill! Thanks for your help Gary!