Section 11 Carter County, OK Lease

Hey everyone,

I inherited oil rights several years back, around 2009, but I just found this forum. I wish I would have found this site sooner.

I just received an offer from bearcat, which I’ve done business with previously, but the offer was vastly different. I renewed a lease in section 28 in Carter county, OK for 2,000 a mineral acre with a 3/16 royalty in May on 80 acres. The new offer I just received in section 11 is offering $852 per mineral acre with a 3/16 royalty. Since both are in Carter County I was curious if anyone knew why the amount was so much different. Has anyone gotten more in section 11 recently? Is it because the lease in section 28 was a renewal instead of exploration?

I moved your question over to Carter Co., OK. You need to be more specific with your section, township and range. Prices vary widely across Carter, so the location is important.

Hi Chris,

Offers can vary from section to section depending on a variety of factors. Also, consider what the oil and gas prices are at the time of these different offers. There is often a direct correlation.

Any offer that comes out right now is going to be significantly lower than offers a few months ago. Oil and gas are getting beat up in markets and there is a lot of uncertainty surrounding the industry in general.

The first property that I leased for 2,000 an acre is located at 28-2s-2w. The second property that I just received an offer on is located at 11-3s-3w.

I appreciate the replies. I’m trying to get more into my oil and gas stuff but its definitely a daunting task. I just found this resource last night and I joined NARO as well. I’m planning on ordering a few books from them soon. I inherited everything from a family friend back in 2009 or so but I was 21 at the time and just went with it because I didn’t know any better. Now, the income is supporting me and my family while I finish off my flight instructor rating. Once I’m done there I’ll have added income and I can focus more on the oil management side. I’m trying to get away from relying solely on the oil income because it fluctuates so much.

Good for you for getting informed! Read over all the discussions in Carter County to get a feel for the activity.

Bearcat often leases for Continental. Continental has reined quite a few leases in the area . RD Williams was also leasing and a company called Rock Creek Ranch I Ltd was giving a 1/4th. The $852 is pretty much what Continental offered back in 2017 when they pooled Sec 17. Personally, I usually try for the higher royalty, so ask what they are offering for 1/5th. It was $500 for sec 17. Higher royalties have usually paid out better in the long run. The bonus only gets paid once, but the royalties are for the life of the first well and any subsequent wells.

You can try to get a better lease with BearCat with better clauses more favorable to you (don’t sign that first lease they propose as it is not friendly to the mineral owner). Or you can wait for pooling and get some protection that way. There are pros to leasing if you can negotiate with the lessee. May be difficult in this cas-cons. Or there are pros to waiting for pooling. I usually pool if I have trouble getting the clauses I want from the lessee.

The Look before you Lease is a good small book to get a quick look at the business. Read the Mineral Help tab above. Ask tons of questions. Are you familiar with the Oklahoma Corporation yet? Gross Production tax site? If not, come back and will give you the links.