McLain County, Oklahoma Leasing Question

Hi Everyone,

First Post here, so bear with me.

I've got an offer to lease on a piece of land I own the mineral rights in McClain County, OK.

Its in N/2 NW/4 of Section 30, T6N-R2W. They're calling it the Flint Creek # 1-30 in the Oil Creek formation. It's from a JSH Engineering Co. in Aurora, CO. Also the offer is to be sent back to a Continental Land Resources in Edmond, OK. And there is a cost breakdown from Charter Oak Production in Oklahoma City, OK.

So the question is, Which is better?

Lease @ $150 per Mineral Acre with a 12.5% Royalty (3year term)?

Or Lease @ $75 per Mineral Acre with 18.75% Royalty (3 year term)?

Thanks for your help.


Chris accoring to the Okla. mineral rights registry the going lease rate in your area is $150 an acre Over the last six months. I would not take anything less then a 3/16 royality rate and try for a 1/4. I would try calling Charter Oak and see what they would offer because it sounds like they are going to be the operator and they have drilled 2 oil wells this year in section 18 which is 2 miles North of you or call Contnental and see if they would offer more.

Hey Richard, I had thought about subscribing to the registry. Has it been pretty helpful to you, worth the money?

Michael it helps out by listing all the counties you have minerals in, and we have alot of litle areas we have no idea we own and a landman can spot the inherited name and then check out if you are a heir so for the money it was worth the charge. I think they are up on top of the leasing going on but seem to behind in the drilling at times. I wish they had a registry in Texas. I did see a comment on the forum here that a lady who listed on the registry was found by a oil company that was holding around $8,000 in her name.

This is way low! Try $600-$1,000 per acre with a 25% royalty - hire a good oil/gas attorney for sure - landmen are tasked with leasing for the very least amount in both areas,.

Chris, There is no recent activitiy in that section and nothing in case processing which processes the various orders which have to be obtained before any drilling can happen. I’m guessing these folks are trying to accumulate some cheap acreage in anticipation of the area heating up. I’m no expert but I would get familiar with the Oklahoma Corporation Commission website so you can monitor any activity. If and when the process starts the lease offers will most likely start going up. There is always a chance the area does not heat up and they could lose interest, so the question is do you want a little money now or gamble on a lot of money later on.