Robert,
Have you found out any more about that production?
Anyone getting lease offers better than $200? I spoke with all companies who are leasing in the area and no one is offering more than $150 to $200, not near the $850 and $1,000 someone else here says they are getting.
I’ve leased 155 acres for $350 per acre east of Mulhall by I-35. A small amount in another area by Mulhall, which is part of a larger deal, is under a verbal agreement for $850 but has not closed yet. Still working out some other issues. I put together a block of acreage and made the deal for the $350. Do you really think they will tell you this? The goal is to get the leases cheap before drilling gets widespread, which causes prices to go up if the wells are good ones, as these look to be.
They may not pay you this larger price but sure did to me. Go figure!
Cleveland - Mississippian - Woodford - Hunton or Misner depending on if it is sand or limestone. The Mississippian can have three different sections. Chat at the top solid limestone in center and Osage at the bottom.
The offers are just that. I did not try to negotiate anything. I spoke with Osage, Devon, and another outfit; they are the three doing the most leasing and their offers were what they are offering everyone initially. They certainly are not too interested in leasing outside a very small area, just Township 17N, 18N, and 19N. For having fairly shallow wells supposedly coming in at 500 and 700 barrels a day, you’d think they’d expand out their leasing area a little.
Being from the Mulhall area and having many friends and family still there, I’m very much in the loop as to what is going on with leasing. My connections in the oilfield say there will be many rigs drilling in the area from Crescent to Stillwater in the next 18 months. An RV park has been built north of Mulhall just for the rig personnel and is nearly full. He is being told by the drilling company to expand to meet their coming needs. Leasing is heavy in the area described and most taken at the lower price as you’ve been told. I would be interested to know how much acreage is left open for lease in the area we’ve all been talking about. I guess maybe 40%, what do you think Joe.
Devon and Osage say they are only leasing in a small area of Logan for now and only for the Mississippian formation. I found no one really interested in 16N or further South. There is one outfit leasing 16N and South but they are not an operator and looks like they are speculating. The leasing looks to be pretty slow for such big plans as I was surprised how spotty leasing was in 20N, looks more like they are just leasing on speculation. The bonuses they are paying and the lackluster leasing seems to show little commitment and not very high expectations for the overall area and more to a small focused area. There is another company that had leased in the area and are now letting those leases expire and moving out of the area.
My family has mineral rights in Section 13, Township 19 North, Range 3 West, and we are getting offers to lease from 3 companies so far. I have not yet talked to the companies to negotiate terms. I live in Seattle and am unfamiliar with the oil and gas industry, so I need advice on what is going on in the vicinity of our land, who are reputable companies likely to drill in this vicinity soon, and the names and contact information for recommended attorneys or landmen (landwomen?) familiar with this geographic and legal area. Thanks for any help you can provide in pointing me in the right direction.
Lee,
I was shocked at the RV park north of Mulhall. Only 2 company trailers in the park. Then I only saw 2 wells drilling on the east side of I-35.
I know a few wells have been drilling in the area, but most are at least 2 to 4 miles apart. More like they are spotting/testing the area. I have been told there are several wells staked, but nothing drilled.
Does anyone know what is taking place?
Devon just finished drilling the Adkisson, six miles west of Mulhall on CR 65. Talked to the company man. They are bringing in 4 more rigs besides Nabors 113. And after talking to the completions guys on the well pad they are scheduled to drill 26 more wells in the area this year. The Adkisson has a production well and a SWD. It is in the Mississippi Lime. I hope it is a good one as I am just to the south.
Virginia Pflum said:
Lee,
I was shocked at the RV park north of Mulhall. Only 2 company trailers in the park. Then I only saw 2 well drilling on the east side of I-35.
I know a few wells have been drilling in the area, but most are at least 2 to 4 miles apart. More like they are spotting/testing the area. I have been told there are several wells staked, but nothing drilled.
Does anyone know what is taking place?
Robert,
I thank you as recently did Kaye for again confirming what my many past postings have stated. This area which again is roughly from Crescent to Stillwater and Guthrie to Covington will see a large amount of H drilling in the near future. Oil prices must hold above 85. I talked to a company from Arkansas named Movac that is renting the old Phillips 66 station on 51 Hwy to yard their tank trucks. Again more companies setting up shop for the coming rigs. The rig demand is large and it will take time to get them moved to the area. Deep gas drilling is falling and those rigs are coming here I’m told. Yes the wells currently drilled are most likely testing the area along with the seismic work.
Lee
Lee,
Thanks for the information. I know we still have a few rigs drilling in the Barnett in Fort Worth/Arlington, Texas, but I figured these rigs will be moving north. I’m sure most of these wells are only to hold the leases that they had to give $25,000 per acre, so they will be shut in for a while.
I hear they are planning on doing a lot more drilling northeast of Perry, Noble County within the next few months to a year. Plus, Woods County has a 2600 BBd well, poor guy. That is why Parnon is putting a pipeline across country. If only oil prices will stay up, I think we will see a lot more drilling.
Is Mo-Vac out of Edinburg, Texas the one who rented the old Phillips 66 station? If it’s them, they do frac & skid tanks, plus all kinds of truck services. That will bring a few more people to the area.
Does anyone know why the oil company have set up RV at the well sites? Do they have too many trucks picking up the wrong oil again?
Virginia
Most likely it’s the same Movac. I have a well in the area of Woods County where these large volume oil wells are being drilled and can confirm your number, in fact there has been one 3000 BPD. Eagle has 4 rigs drilling in an 8 to 10 mile area and are planning to add 4 more. I visited the tank farm construction site for Parnon yesterday in Alfalfa County and was told they expect as many as 200 to 300 loads of oil to go into it each day. The RV on the location is for the 24-hour flow back hand or pumper whichever title he goes by. Moving a large amount of fluid they want 24-hour supervision. That is a crazy lease price you get in Texas bring it up here. Everything is bigger in Texas.
Lee
Virginia,
Here is the latest reported well
Logan: Payne Exploration Co.; Vieth No. 1-31H Well; SE1/4 SW1/4 SE1/4 SW1/4 (SL) of 31-17N-04W; 59 barrels oil per day, 104,000 cu-ft gas per day; TD 11,512.
Some companies want their production rates to remain a secret so they can lease other people’s minerals for cheap. But as you can see, not all those wells are that great.
Thank you Mineral Joe.
I figured some of these good wells were going to be spotty. I haven’t heard what my well is doing as it’s a big secret, but they have a pumper on site, so I figured it must be doing O. K. as that is really costing them.
I have seen that some of the wells in Payne County, east part of Noble County and now a 1200 bbl well in east part of Garfield, so I’m sure they will pick up all the leases in north to west part of Logan County.
Virginia,
When you say they have a pumper on site do you mean a person 24/7 or pumping unit or what? What Township and Range is this 1200 bopd well in Garfield, I couldn’t find it.
Mineral Joe,
At my well site which is in Noble County and drilled to my property in Logan County, they have a person on 24/7.
The Garfield well is Sebranek 1-3 H, I think the legals are somewhere in 24N-4W, I can’t remember them for sure, but it was around that area. I think it came in at 1253 boepd, not sure what it’s making now.
Also, a McKee 1-H was drilled in the southeast part of Garfield County, haven’t heard what it’s making and now they are drilling just south of Covington on Frank (forgot his last name).
I find that these wells are really different on what they can produce in just under a mile. So, it’s still a miss or take investment. Profit may not be what it seems at this time.
I’m also wondering how long these wells will produce. I know my family had wells that have produced over 40 years, some had short lives.
Were you able to get the information you were looking for? My family farmed this property for several years back in the 80’s. I also live in this section. My understanding is the surface is for sale privately or soon will be. Offers for minerals to purchase is running as high as $1800 per acre in this area.
Can anyone tell me what companies are actively leasing minerals? I just received an offer from Devon and I thought it stunk.
Thanks
Dear sir,
Your mineral rights are worth 5000 per acre. Your land will be drilled upon probably within the next year or so. It is probably leased to Devon which paid probably 150 dollars per acre already. You should have received the money for it, so if you didn’t you need to find out why. If I were you, I would not sell. Depending on how many mineral acres you have, you could be getting some big checks in the mail.
Right now the leases are going for about 500 to 1400.
DW said:
Were you able to get the information you were looking for? My family farmed this property for several years back in the 80’s. I also live in this section. My understanding is the surface is for sale privately or soon will be. Offers for minerals to purchase is running as high as $1800 per acre in this area.
Can anyone tell me what companies are actively leasing minerals? I just received an offer from Devon and I thought it stunk.
Thanks
Robert,
I have some land leased to Devon but this particular property they are only offering $100 per acre, actually $300 for 3 years. I’m not going to take it. What is your basis for saying the sale of minerals are worth $5000 per acre? How do you know there will be wells drilled here within the next year? Who is leasing for $500 to $1,400 per acre because I want lease to them?!
Thanks,
David
Robert Brian said:
Dear sir,
Your mineral rights are worth 5000 per acre. Your land will be drilled upon probably within the next year or so. It is probably leased to Devon which paid probably 150 dollars per acre already. You should have received the money for it, so if you didn’t you need to find out why. If I were you, I would not sell. Depending on how many mineral acres you have, you could be getting some big checks in the mail.
DW
I’m the one who said that mineral will probably be worth $5,000 in a few years. That doesn’t mean anyone is getting that right now. But, if oil/gas goes back up, which it will, then everything that has anything under it will be drilled within the next couple years. I’m not sure where your property is, but $300 an acre is sure cheap. I haven’t leased anything in the last year for less than $500 and they already drilled a well and have spaced some of my other property.