Have been offered a lease on 20 acres in Section 4-19N-17W in Dewey County, Oklahoma. Would like to receive any input on comparable lease rates in this area.
Thanks
Roger,
You are near the Woodward County Line. Some nice horizontal wells have been competed SE and S of your area so I expect more good operators will soon becoming into your area. I wouldn't lease to anyone but an established operator and then for only 3 years, no extensions and limited rights to hold with economic production only. Unless you have more acreage in the county, you may be limited in how much you can demand as bonus. With a large acreage position, you may have other opportunities that the big operators are willing to pay larger amounts for for longer terms. Personally, I would wait to lease for a year with only 20 net mineral acres.