I received a lease offer for $50/acre at 3/16ths for 3 year lease in Section 16-10N-12E. Is this a decent offer? What is the activity in this area?
I see one other lease filed in the last year in 16. It was a lease extension. There seems to be a pick up in leasing activity. Lease bonus info is not public, but maybe someone on the forum can comment if they had an offer.
There are no new permits or OCC cases yet.
Okay- Thank you! Yes, if anyone else has had an offer in that area and is willing to share the amount, I would appreciate it!
Who made the lease offer? Okfuskee county is gas country, especially that south and east. Lease bonuses there have never been crazy high. With the massive drop in lease bonus rates I’ve seen out west, getting $75 for a 3/16th in Okfuskee county would be fine. From what m Barnes said, it doesn’t sound like there’s much competition for leasing in that section, and that’s what drives lease bonus rates.
I received the same offer in 10N-12E. Actually every offer I’ve had the past two years and every pooling I’ve seen in Okfuskee/Hughes County has been for $50 and 3/16. Two years ago I was regularly getting $500 and 1/5 in Hughes, but since then it’s always been pooled at $50 and 3/16. Doesn’t seem like there’s any competition for the one operator. They are however planning to drill a new well in sections 4,9 &16.
Sounds like $50 3/16th is fair market value now. Hughes county 4-5 years ago was A LOT better than Okfuskee ever was
One more question related to this Section in Okfuskee (I’m new to all of this, so please forgive my ignorance!)… I went ahead and signed the lease, and today received a notice of pooling in the area. Do I need to take any action on the pooling if I have already signed a lease? Thanks for any advice!
I hope you got paid for the lease at the time of signing. Usually you do not have to do anything with the pooling. However, if you have not been paid, then you may have to answer the pooling just in case. In your pooling answer, you would give your name, address, description of acres and say that you leased with “so an so” for “x” royalty and just in case the lease is not filed in time, you would like to accept “x” royalty for the pooling as a back up.
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