Any thought on what a fair price would be for a 3-year, 3/16th lease on minerals in 5n-3w? (More specifically, 50 net mineral acres in sec. 2-5n-3w.) These minerals are open and would like to get them leased.
Rick,
I took at quick glance at OCC website for pooling orders issued in 2017 for 5N3W, to see what's been paid for bonus per acre. I found a couple for sections 6 and 7, that paid $4,500 for 3/16s. Both were dated August 2017. Then I found one for section 31 that paid $1,000 for 3/16. It was dated April 2017. The other was in section 18, which paid $1,200 for 3/16th.
I have no idea why so much was paid ($4,500) in sections 6 & 7, in August 2017. The company was Eagle Exploration. I am interested since I have minerals in 30 6N3W and the current lease expires in April 2019. I hope this helps.
Joyce,
Thank you so much for your response. The western sections in 5N3W seem to be pretty hot right now, especially the Northwest. Eagle Exploration completed a horizontal project in that area on 1-24-2017. That well is the Jody Mantooth 0503 7-1XHW and is producing from the northern half of section 7 and all of section 6. The well came in at 521 barrels/day of oil and 700 mcf/day of natural gas flowing via gas lift. That probably explains the steep pooling prices you noted for those sections later in the year. Our family has minerals currently under lease in 8-5n-3w in addition to those that are unleased in 2-5n-3w. The section where your minerals are is only one mile north of the bottom hole location of the Mantooth 7-1XHW, so I would venture a guess that you will be looking at a nice lease bonus if you are not drilled on before the current lease expires. Eagle is currently drilling a horizontal test in in 22-6n-3w, so hopefully a good result there will spur development of other projects in that vicinity.
I will try to let you know if I hear anything new. Best wishes to you and yours!
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Joyce,
Thank you so much for your response. The western sections in 5N3W seem to be pretty hot right now, especially the Northwest. Eagle Exploration completed a horizontal project in that area on 1-24-2017. That well is the Jody Mantooth 0503 7-1XHW and is producing from the northern half of section 7 and all of section 6. The well came in at 521 barrels/day of oil and 700 mcf/day of natural gas flowing via gas lift. That probably explains the steep pooling prices you noted for those sections later in the year. Our family has minerals currently under lease in 8-5n-3w in addition to those that are unleased in 2-5n-3w. The section where your minerals are is only one mile north of the bottom hole location of the Mantooth 7-1XHW, so I would venture a guess that you will be looking at a nice lease bonus if you are not drilled on before the current lease expires. Eagle is currently drilling a horizontal test in in 22-6n-3w, so hopefully a good result there will spur development of other projects in that vicinity.
I will try to let you know if I hear anything new. Best wishes to you and yours!
Thanks Rick! I appreciate the insight into what's happening. I guess I'll be happy either way - drilling this next year or getting to lease again.