Stafford County, KS oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
I have a number of wells that have been excellent producers south of you for the last twenty years; however, production has greatly decreased over the last 2 years. Most of these wells are in an area that has now been unitized following recent approval by the State of Kansas. The current companies who hold the leases have told me that they intend to frack this area, but it remains to be seen if this will be beneficial overall. Over the last year, I have received numerous offers to BUY these leases, but the offers have been so ridiculously low that I consider them to be nothing but a predatory fishing expedition. A couple of the purchase offers have been equivalent to one month or less of income just 2 or 3 years ago. If you have been through the leasing process before, and are just trying to get a feel for the "fair going rate" in your area, I couldn't help you. But if this is new to you, the one piece of advice I could give is don't take their first offer because it will always be to their advantage, not yours. A couple of years ago, I negotiated some leases in Moffat County CO for more than double their offer. I also negotiated much better terms and conditions in every aspect of the contract. It would be helpful if you knew a little bit of the very recent production in areas closely contiguous to your land, and also about the history of that area over the last couple of decades.