Any idea who Fusion Oil represents?
Just received lowball ready-for-execution lowball lease offers for Sec 7-10n-10w and 22-10n=10w from Blue Ribbon Energy: $300/3/16/3 yrs +2yr option.
Our family has received an offer from Swanson Oil and Gas to lease acreage in section 35 8N 11W for $350 per acre with 3/16 royalty. Does anyone know what is going on in this section and whether this is a good offer? Also, does anyone know who Swanson represents?
Darrell, we are also in 10N11W. I am sure that the first offer is very low. I recently researched pooling orders for Caddo back to 2011. For parts of the county to the north and to the east, I found a few at 1500 & 3/16; more at $1000 and 3/16 and even more at $600-$700. The pooling order amount doesn’t necessarily represent what you can get through negotiation. Our family is just trying to be patient- we have been contacted by multiple firms at this point and we do want to come to terms. Click on my picture and send me a friend request if you would like to exchange one to one.
M. Barnes- Great Post. Very Helpful. Thanks, Sam
M. Barns- Thanks for the map, do you know where I can get a more detailed map?
Thanks again
Darrell
The Mid-Continent meeting of AAPG is later this year in OKC, so more detailed info may be available then. Just depends upon what the companies will allow their geologist’s to say. A lot of this area is speculative and they want to keep their intent quiet until they get it leased up.
M. Barns
Thank again very helpful. This is all new to me. My brother and I are trying to find the best deal possible. What ever we decide will likely bring the rest of the family along, so I need to get it right.
Mr. Barnes,
You map for Caddo County is so helpful!
Would you happen to have a similar map for Custer County as well?
Thanks!
Dorothy, ask what they want for 1/5th.
Depending upon where you are in Caddo with respect to this map will guide the amount of your offers. More where two zones overlap, less where they don’t.
The most important thing is to get a good lease. Doesn’t really matter with whom since the operator must abide by the lease terms. You do not want ANY post production costs, no enhanced value, no nothing! It will eat your royalties alive. You need a depth clause, a commencement of drilling clause, no warranty of title, a limit on shut in time to two years cumulative, not consecutive, no top lease clause, no extension clause, etc. Friend me if you need help walking through it. It can be complicated the first time.
Pooling is not so bad either. Both leasing and pooling have pros and cons. Good to understand both.
M. Barns, Thanks, sent you a request.
Thanks, Matt…I’ll see if I can give it a try!
Melanie, Friend me with the blue icon at the left of my name and we can work from there.
Steve there in Sec 5 Township 10 Range 11
Darrel, Hap, et. al.,
If you’d like to look at an interactive map, I would recommend going to the Oklahoma Corporation Commission Oil and Gas division website. From there scroll down to Oil and Gas Data Mining. You can choose to view data on a map (GIS Data Mining) - there you can turn on the Section Township Range grid to view for all of OK. The cool thing about this site is it gives you the ability to view wells on the grid and link to production data or files. The only caveat is that I’ve found the spatial location of the wells to be hit or miss sometimes so if you don’t see a well that you know is in a particular location that is likely the reason. You can also search wells by legal description, just click on “Switch to Advanced Filter” to search by Section, Township, Range.
To turn on the Section, Township, Range grid activate the TRS layer on the right side of the page as shown below:
I hope this helps!
Matt Sands
Minerals Management
Thank you, Mr. Barnes!
Hello everyone. I’m new to all of this, so I’ll just say what I know. I have 6 acres that Fusion Oil wants. The first offer was for $300 per acre which I just tossed. Now they are offering $400. Is this a good rate or should I hold out for a better offer? I think when my mother last leased it,it went for $500. Anybody doing better?
This is map of Caddo with the township and ranges. The previous map was from an investor presentation. They are somewhat vague on purpose. Don’t take those areas as an exact representation or hard lines. You can read the investor presentations from the active companies in the area and download their maps and sketch them onto the road map.
Continental Resources, Marathon, Newfield, Devon, Cimarex are big guys-each with their own focus area.
I just got back from the AAPG convention (national meeting for American Association of Petroleum Geologists) and saw the Caddo, Dewey area on more maps than last year, so that is a good sign. They are on the fringes of the known hot spots, so don’t expect the offers to be as high since the geology is not thought to be quite as stacked or quite as thick. Hearing them comment on the additional counties was encouraging.