We have received an offer to lease our mineral rights in Custer County. Township 14 North Range 16 West. Offer is $1,500 per acre bonus for 3/16 royalty. Also have offers for $800 / 1/5, amd $0 / 1/4. Can you advise on what the production out of these rights would be?
Sorry, Section 30! Left that out.
Impossible for anyone but an agressive engineer to answer that question for you, looks like all the wells around you in 14N-16N have been plugged and abandoned so no data to pull from to make an educated guess
Beg to differ. There is an active play in the Cherokee and Red Fork for drilling horizontal wells very close to you. Mewbourne drilled a set of horizontals one mile to your west in the Red Fork. Sanguine drilled a Cherokee horizontal well in sec 31 next to you back in 2015, so both zones are viable.
Mot savvy mineral owners would want the highest royalty since even with no bonus, the additional revenue from royalties on one or more wells would more than make up for the bonus over decades of production.
It is wise to get a good oil and gas attorney review any draft lease as the clauses in the lease are the most important issue. The draft lease is in the operator’s favor and needs quite a bit of edit work before it is more fair for the mineral owner.
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Thanks. We have an attorney in the family who is reviewing.
Are there any public records available for production out of nearby wells?
The OK tax Site has the last 12 months of production for free. You can order complete sets for a fee. https://oktap.tax.ok.gov/oktap/web/_/. Use the HELP area and the Public PUN option. You do not need a login.