Just noticed Continental issued pooling order for section 34 and 35,township 2s, range 4w in mid July. Will this effect lease rates township 3s, range 4w?
It will only affect the contiguous eight sections to the pooling orders.
It’s in the section to the southwest. So it touches the the corner of section 3. Is that contiguous?
If it touches the section of the pooling, then it is contiguous.
Yago,
It could, but the main thing to take note of here is how “squeezed” the Oklahoma market is right now in terms of any sections outside of current regulatory or a definite well coming, getting leased.
An interest that you could have leased a year ago in your sleep will be much harder to get leased now that operators, for the most part, are being pushed by their board to drill their best positions that they already have and aren’t in the mood to spend a lot more money on acquiring more acreage.
Most operators are over-extended in their positions right now and simply will not be able to drill everything before they let some acreage expire.
I wish you the best of luck and hope this insight into the current state of Oklahoma Oil & Gas helps.
We just got an offer from Bearcat. If they are making a lease offer wouldn’t that indicate that they are serious about the section.
Yeah, it would. I would imagine bearcat, leasing for Continental, is one of the only leasing agents in 3S-4W down there right now who is actually being commissioned directly by an operator to lease up lands.
From what I understand they have leased enough in section 9, township 3s and range 4w that they told Bearcat to move onto the next section. I am coming off lease September 9 or the 20th. They have tried to top lease me a couple of times. I declined. They offered 1500 dollars per nma with 3/16th or 1/4 I can’t remember. There is a well in section 3 and it looks like 2 other sites are being prepared. I haven’t heard from them in the last 3 weeks but have received a standard lease letter offering 1100 per nma. I thought they would withdraw after their earnings call but received the offer a week or so after. Just trying to see if anyone else has any input. Fyi