I have mineral interests in Sections 3 & 10, 2N, 13E. I have leased them 3 times. Actually thought Bravo Arkoma was going to drill the last time. They did everything but poke a hole in the ground, but in the end they let the lease expire and did not exercise the 2 year option. Lease expired this spring. I recently received an offer to purchase (not a very good one IMO) my interests in Section 10. I checked and Meadows Oil & Gas had done some leasing in these two sections in late 2019. Anybody have any information about new activity in this area?
There only 11 rigs running in all of OK, plus things are a bit slow right now given the COVID-19 situation. Currently no OCC cases in the last 999 days for that township. Most of the recent leasing was in section 10 by Meadows Sept-Dec 2019. It could be a bit quiet until oil and gas prices rise enough to make it worth drilling in that part of the Arkoma Basin.
Thanks for the info.
I have seen some recent leasing offers in the area for 02N-12E in Atoka County. They weren’t very good offers. I think there are some companies looking to pick up cheap leases during the downturn that will then flip the lease or minerals to someone else when prices pick up.
I am seeing that same pattern in several counties in OK. Of course, my opinion of “cheap” might be different from someone else’s opinion.
I am not telling anybody here what they don’t already know, but first offer is almost always lowball. My last experience started at $75 at 1/8 for 5 years. A year later, I signed for $300 and 3/16 for 3 years with an option for 2 years for 150% of original bonus. I negotiated what I thought were good lease terms and I was pretty proud of myself. They later pooled for same bonus and %, don’t know about lease terms. A year later the pooled people got paid again and since they never drilled, I am thinking I messed up. My offer to purchase is equivalent to what I first leased for in 2007. I am ready to go back to 2007, for a lot of reasons.
Me too! Think of the mistakes I could have avoided.
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