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Oil/Gas/Beckham County Oil activity Follow up Q

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Question
QUESTION: Is there any drilling activity near
S21 T10N R22W or S28 T10N R22W

My grandparents owned a 160 acre farm in that area and I understand there is some interest as it's right in the middle of the Hogshooter Wash area.

Thank you

ANSWER: The Oklahoma Corporation Commission (the regulatory body for oil and gas in Oklahoma) has a wealth of information available online relating to oil and gas activity and production in Oklahoma. You can look up such things as drilling permits, recent production information, well completion reports, forced-pooling orders, and anything else that falls under their jurisdiction.

I took a look, and also live near Sayre, so can tell you that yes, there have been a number of wells drilled recently in this general area, though most are to the north of your locations by at least several miles, and overall it's slowed down somewhat over the past six months. Still, you're not in a bad area. As you continue south it gets worse actually.

No current leasing activity in either section that I could find, but if someone wants to lease you you'll likely be contacted. Once gas prices (natural gas) go back up I think things will improve for your area, but I have no idea when that might happen. They've been down for years now.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
The Mineral Hub






---------- FOLLOW-UP ----------

QUESTION: Thank you very much for your answer.  The reason I asked was that I'd heard rumors that we were going to be offered a lease.  Now I understand that we are going to be offered a lease (not sure by who) in the next few weeks and am wondering if you could offer an educated guess as to what price range we might expect.  Thanks for you time.  Donna

Answer
Several years ago you could have probably gotten $1000/acre to lease. I'd say you're going to be closer to $500/acre currently. $750 if you're lucky (or persistent, and have a lot of acres to lease.) If/when some new wells are drilled here the bonus amounts will increase if any of them are real good wells, but for now, not so much.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
www.mineralhub.com
The Mineral Hub  

Oil/Gas

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Frederick M. Scott

Expertise

Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience

I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

Organizations
National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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