Lease rates in McClain County, Oklahoma

I received a lease offer for Section 16-5N-4W with the following options:

  1. Lease/assign unit interest for $300.00 per net acre delivering .875 NRI;
  2. Lease/assign unit interest for $275.00 per net acre delivering .8125 NRI;
  3. Lease/assign unit interest for $250.00 per net acre delivering .80 NRI;
  4. Lease/assign unit interest for $150.00 per net acre delivering .78 NRI;
  5. Lease/assign unit interest for $0.00 per net acre delivering .75 NRI;

Does anyone know if this is a fair offer or what current offers are in the area?

The O&G company intends to filing a pooling application in near future.

Any help/information would be greatly appreciated.

If you are talking about the Red Rocks offer for the Rooster 1-16 Well, then we received the same offer. I can’t speak to whether or not the offer is fair, as I don’t know what others have received. i did notice that there are very few wells in that area.

I responded mostly because I find the situation very curious. Since receiving the same offer to lease, I’ve received a copy of the pooling application that was supposedly filed. However, the application lists a Cause no (2022-002102) that doesn’t exist on the OCC website. It doesn’t list any related Causes and it all seems very odd to me, especially because we signed a pooling order a year ago for the same location (SE/4 of 16-5N-4W) but it doesn’t look like it was ever drilled. The elections in last year’s pooling order, Red Rocks offered the exact same terms as was in their letter.

Does one of the Forum’s experts have a better idea as to what is happening here??

There were 3 companies leasing and pooling in the nearby sections, Citizens, Roan and Red Rocks. Which one is currently wanting to lease, and which one did you sign a pooling order with a year ago?

New cases after March 21, 2022 are on a new search system. https://oklahoma.gov/occ/court-dockets/electronic-case-filing.html

If the well was not drilled in the 365 days, they may be filing again. The new numbers have an extra zero and a dash.

The pooling order signed in March 2021 was with Red Rocks as operator. The letter received in May of 2022 was also Red Rocks, as was recent pooling application filed with OCC, all of these for the exact same location and common sources (Viola/Bromide/Mclish). Again, the cause number on the copy of the June 2022 pooling application, which was received in the mail a few weeks ago, seems to be wrong as I can’t pull it up on the OCC website.

Are we being pooled again because the well wasn’t drilled within 365 days?

https://oklahoma.gov/occ/court-dockets/electronic-case-filing.html Try this new link for cases after March 21, 2022. They have an extra dash and zero in them.

Yes, if they did not drill in the correct time frame, then this may be the new pooling.

Red Rocks was trying to claim operator status in 1,2, 3, 8, 11, 12 13, 14 and 18-05N-04W McClain Co, petitioned OCC for producing well information from Citizens and OCC granted Red Rocks Motion to Produce on 9/27/21. In 2021 Citizens sold a number of the wells to an undisclosed buyer. And FDL transferred 301 wells including the Moore C oil well API # 08721473 in Sec. 16-05N-04W in NW quarter to Daylight Petroleum on 3/22/2022. I would want to know who the OCC is going to allow, pooling, drilling and producing of Sec.16-05N-04W in SE/4. You can all OCC at (405) 521-2331 or email inquiries to [email protected]

You have to wait on the Order to know that information, or have some crystal ball to predict the future. That is why they are having the hearings.

You are right and Red Rocks should wait until they have received the OCC’s answer to MAKO Resources Protest but according to this thread Red Rocks is mailing out a Notice of Pooling Application and making lease offers claiming they will be “pooling soon” as if they are the OCC designated operator.

Boiler plate well proposal letters. MAKO is most likely protesting to get participation agreement. Protests almost always get worked out prior to the hearing.

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