Section 1 8N 6W

Does anyone have news about the drilling taking place by TPR on Section 1 8N 6W?

I know the drilling manager for TPR. What do you want to know?

I have been trying to sell my mineral rights for that portion. I own 7.8 acres. Where are they in the drilling process? I have been told to ask for 3-4 times more than the going lease amounts which are 6,000.

That figure is a very,very rough rule of thumb, just to get you in the ballpark. In the overpressured Meramec, I’ve seen 5x for a 1/4 royalty, but as low as only 2.5x at times in the Arkoma. At a lease price of $6,000/acre, even the difference between 3x and 4x is the difference between $18,000-$24,000 an acre! Huge difference. You can certainly get that figure in some of the best areas of the state, like 16N-9W, or the SCOOP where the Springer is prospective as well as the Woodford and Sycamore, or maybe the N-NW portion of the Merge, or somewhere that a 10-well density test has been approved.

I don’t think 8N-6W has anywhere near the number of new well results to command $24,000/ acre...that is, unless you are unleased.

Have you leased your minerals? If so when, and for what royalty? What lease bonus did you get?