Out of the blue, I had an offer yesterday from a landman contracted by Bearcat Land Inc, offering $25 nma and 3/16 royalty, 3 years for two sections. Typical low ball offer. Don’t know who his end client is at this point. it’s been 4 years since the Range Resources leasing activity, and those leases have expired over a year ago without any drilling on my properties, so everything I have is back “on the market”. I honestly wasn’t expecting any more activity interest in Cimarron County.
Just wanted to post and see if anyone else has received an offer or two.
BTW, I haven’t accepted anything near $25 nma for years, probably 2 decades, and I told him that.
Lee H Spencer,
What section are you in for 6N-8ECM.
The only thing I see recorded recently in okcountyrecords.com for Cimarron Co. OK is the following.
School Land Commission(CLO) leased approx. 11 sections in the NW part of 5N-4ECM to Wildcat Resources, Inc. out of Wichita, KS. They paid $26.25/a for a 3 year term & 3/16 royalty. They haven’t filed anything with the OCC to indicate what they are proposing. The leases were dated June 1st of this year.
Perkins-Prothro Ranch LP signed numerous memo’s of lease with Barbee Exploration, Inc. out of Amarillo, TX. Since it is a memorandum you can’t tell what the terms are. It looks like they signed approx. 60,000 acres. Townships 1N-6ECM, 2N-6ECM, 1N-7ECM, 2N-7ECM, 1N-8ECM. Nothing has been filed with the OCC to indicate what they are proposing. It was just recently recorded @ okcountyrecords.com.
The CLO just agreed to lease a 40 acre tract in the SESW Sec. 7-5N-8ECM to Kirchner Inv. LLC. I haven’t looked to see where they are out of. They bid it @ $202.00/a and were awarded the lease. It hasn’t been recorded on okcountyrecords.com yet.
A few leases recorded in Sec. 2 & 3-1N-9ECM to drill vertical oil wells. I don’t know what they were offered or received.
Not much has happened in Cimarron Co. since Range Resources leased around 100,000 acres, targeting the Keyes Dome area, 4-5 years ago. They drilled the one horizontal well,Hazel XS 1-23H in April 2014. The drill location was in Sec 14-5N-8ECM with the lateral in Sec. 23-5N-8ECM. It was a dud and they plugged it Dec. 2016. I think it only made 1 load of oil that was reported. The completion report showed 48mcf/d and 4,512BW/d.
Sincerely,
Lawrence Lindley
Lawrence, thank you for your response and info.
I own sections 24-28,32,34,35 in 6N, 8ECM. Also own sections in 5N, 8ECM
The offer has been increased, so still negotiating with them.
That Barbee Exploration leases that you mentioned are the ones that are interesting to me.
How do you ever find out the terms?
My landman might be negotiating for Barbee. ???
Lee, I don’t think Barbee Exploration out of Amarillo is bidding on your parcels. With Barbee filing memorandums you would have to try and get information from them.They are a small outfit but one never knows. Usually when the landman won’t tell me who they are working for I usually tell them I want to know who I am getting married to. Sometimes it works and other times it doesn’t. I have access to Drillinginfo from my employer and I looked at most of your sections, but 2 stood out.
Sec. 27-6N-8ECM had 2 wells that produced oil from the Purdy sands. The completion report for the one in NWNWSE was drilled in 1955 and showed it pumping 25BO/D and 50BW/D, it was plugged in 2010. The other one SWSWNE was drilled in 1967 and it showed it pumping 34BO/D and 34BW/D, it looks like it was plugged in 1969? I don’t have a way of finding their cumulative oil production.
Sec. 26-6N-8ECM had numerous wells drilled over the years starting in 1954. Some were producers in the Keyes gas zone. None looked to be very good and usually didn’t last long. What is interesting to me for this section is VRK Operating Co. out of Fort Worth drilled a dry hole in the SE/4 in 1988 but drilled down to 5003’. That let them look at some of the deeper zones.Maybe someone is looking at those zones.
All I know is nobody is looking for gas at this time it is oil,oil, and more oil that they want.Hope this helps.
Lawrence, you made one statement that is interesting (and will be educational) to me.
“All I know is nobody is looking for gas at this time it is oil,oil, and more oil that they want.”
What makes you make that statement? oil versus gas…
Lee Spencer
Lee, thanks for the response. I work for a gas company in the Guymon-Hooker area. We have approx. 110 shallow Hugoton gas wells that were drilled 70 years ago and maintain approx. 120 miles of a gathering system that is 70 years old. We are getting around $2.00/mcf for the gas. We sell around 5,700mcf/d. By the time DCP charges us for transportation (.25/mcf) and processing (approx. 6% shrink) plus our rental field compressors we don’t net much. Of the 110 wells there is only 1 that we would try to fix if it has mechanical problems. The rest would be plugged because of the economics. This gas is mainly dry, with an average BTU of 1040.
With gas and no liquids it’s hard to make it pay. I think with $65.00/bbl oil it just makes more money at this time.I am sure some of the dry gas plays like the Utica - Marcellas, Haynesville have better economics.
I still think whoever is wanting to lease your minerals is looking for oil and not gas. Time will tell…Lawrence Lindley
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Lawrence do any of your wells produce helium?