Anyone leasing Sec 26 17N 4W? I have been offered $150/acre, 3yrs, 3/16th fromHarwell Field Services.
John,
If it's with White star, that is all they are offering, but it's too low. Once oil prices turn around, bonus will go up. But, if they have all the leases except yours in the section, they will just pool you.
Pooling with a post-production free lease might be superior to their offer.
But I think lease prices are not down over oil prices but rather in that region earthquakes. Water disposal is a major expense, and shutting in injection wells drives up costs. If water cut is 80%, and disposal jumps from $1/bbl to $3/bbl then you've added $8 / bbl of oil...or 20% of the price.
T L ,
Where are they paying a $1 bbl for disposal? I may want a salt water disposal if it goes to $3 bbl.
John,
Harwell Field Services is only the leasing company or Land man, that probably isn't the company that is wanting the lease.
With trucking cost, it can run $3 easy, but the highest price at the well I found when checking for an appraisal was ~$2 down to $0.50/bbl. In the Fayetteville Shale many are trucking 75 miles one way after the Guy Earthquake swarm forced the state to shut down all Arbuckle disposal wells. At hourly rates that's not real cheap. A 150 bbl. truckload and $300 round trip is $2/bbl.
I see what you are saying, I didn't think of trucking cost at 75 miles. Things are getting expensive.
At that price, we may be able to clean the water yet and get all the minerals and sell them.
John, Sundance Energy has two wells producing in S26 17N 4W. I know this because my family continues to receive royalty checks, the last, a little over a month ago.
However, on March 1 2017, They announced their divestiture of all assets in Oklahoma’s Anadarko Basin; 18,500 acres for $18,500,000, which includes this section.
The transaction is expected to ‘close’ in May 2017.
I’ve already spoken to someone at the Logan County Clerks Office attempting to find out who Sundance is Assigning to but was told they wouldn’t have that information until the sale is finalized.
Hey, is there anyone on the Forum ‘in the know’ and might have some idea who the purchaser is? I can always wait for the paperwork but would prefer to evaluate the company before hand. Two of my aunts also received inquiries from Harwell Field Services and when I asked the clerk if she knew who they were working for, she said she didn’t know.
Harwell may be working for the purchaser or possibly, just trying to get their foot in the door!
John, At the time I negotiated the leases for my mother and aunts for S26 T17N R4W, back in 2012, I was able to get 700 per acre and a 1/5 royalty for them.
Good luck
Way Low
This is a recent sale from my data base. If a lease is 1/3rd the sale value then you should be getting 1000+ per acre for a lease. (section 4.2 means in section 4 plus some part of the land is in another section)
Sundance has not disclosed the buyer. Sundance is an Aussie company. Oil & gas Investor doesn't have that info yet, so I suspect they will know as quickly as anyone. Much of this is being shifted from explorers to investor/speculator/hedge funds and as such will be much caution to see they don't screw everyone. Suck the cash out, borrow money, then split....leave the mineral owner in a lurch.
TL, Selling and leasing are two different things. Never sell your mineral rights!