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Oil/Gas/Dewey County 19 & 20, 17N - 15W

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Question
Have mineral leases in this Cana-Woodford area held value despite the flight to SCOOP, and the realization of how deep the wells are?  My lease with QEP opens soon and I'd like to renew the $1,000 & 1/4 terms.  Any thoughts?  It looks to me like reasonably productive wells completely surround that area now.

Answer
$1000/acre and 1/4 royalty? Unlikely I'd say. In fact I think you'll be lucky to find anyone interested at half that price, and forget about 1/4 royalty unless you're willing to take no bonus. There's just not much going on in this section currently. I've seen no leases filed since 2011.

The wells that have been completed in adjacent sections over the past few years have not been what I'd call great, but a few of them are decent.

If you're not in a hurry I'd just hang on a few years until someone offers you a decent lease if they haven't already. If you have an offer from QEP to renew at $1000 and 1/4 I'd certainly jump on it though!

If you want to visit the county clerk's office in Dewey County you could do a search for leasing in the immediate area, but right now I don't think any have been filed as of late.

The Oklahoma Corporation Commission is the oil and gas regulatory body for the state of Oklahoma, and on their website you can find a wealth of information about what's going on in the area where your mineral rights are located. You can search for production, completion reports, pooling orders and applications, and other things that the Commission regulates. You can search their oil and gas database from THIS page.

Hope this helps you out.
Frederick M. "Mick" Scott CMM, RPL
Manager
http://www.mineralhub.com

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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