750 - 1750 from offers I've had or was advised.
Steve, Lease offers right?
no...that was per acre on existing leased land. I called a law firm to see what they we offering because they had sent me a letter. 1750 I pretty much just laughed at the offer. I think the greedy ones are trying to get low ball offers out there first. I had another letter from another law firm for 750/acre which I just trashed.
Michael Hutchison said:
Steve, Lease offers right?
Same here we have a good producing well but still getting those silly offers. I guess if they catch enough people snoozing they can make some money.
Do not sell....they send me letters all the time. If you want to sell check everyone out for the best price..but I would not sell.
Richard Pruitt said:
I just received an offer by letter to buy our minerals in Grady County for $2100 an acre by Legacy Royalities. Has anyone herd of this company? I am not planning on selling, seems a little low since we have been forced pooled in our 640 acre section and hoping Continental will drill soon.
Tell that (Don't sell) to some in the Barnett Shale who had people willing to bring them truck loads of money for their minerals when it was more than $12 an MCF who are now getting a little over $1 per MCF, what a joke. A very intelligent decision to have not sold when offers were at $20,000+ an acre, but then again maybe they didn't want tons of money. Who knows though, if they don't want money they can save for their Grand kids or Great Grand Kids, it's like burying money in the ground for a future generation as they are worth little now.
Charlie,
I recently saw some in Blaine bring $4500 per acre but with Nat gas prices where they are and the steep decline in oil they produce, that might be difficult to get a return on their investment.
Does anyone no about NW/4-4-7. We have been approached with a leasing offer?
JW Anderson said:
There are a couple of recent confirmed mineral sales for $1800/acre in this township; one of these is nearby in section 31, and the other is in section 22. However, I think this would be a lower range on any mineral values in this general area.
The Cana Woodford "core" or "tier 1" area will depend upon the particular company. Cimarex defines the "core" area as an area in the southeast part of Blaine County, the far northwest part of Caddo county, and a big circular area in the western part of Canadian County. It stops about the Grady county line, as the thickness of the formation decreases below 150 feet at that point.
However, there have been some nice inital results in Grady County. Continental, in particular, has been instrumental in extending the play. The recent Lambakis 1-11H well in 11-3N-5W extended the play some 24 miles southeast of any existing Cana well. Initially, it was rated at 4.2 MMCFPD and 110 BOPD. It is a rich gas (1350 BTU).
The well you are speaking of in section 29 is the Dana 1-29H, at 2.5 MMCFPD and 88 BOPD (not 500). In the same township, the IGO 1-27H in 27-7N-6W was just spudded on July 27th. The Ballard 1-17H in 17-7N-6W was initially rated at 869 MMCFPD and 212 BOPD.
Initial production rates can sometimes drop dramatically. The decline curve over the first several months is a more valuable aid to determining the value of a well, so it bears watching the production of these initial wells over time. But it looks like Grady county has had a lot of leasing activity, and a good future.
Let me know if I can help further.
Donald Underwood said:I would be interested in your comments about Grady County and the Woodford shale play there. I have just learned that there is a well in Section 29, T7N-R6W that tested 2.7 million and 500 bbl per day. I am new to this play and this seems like a pretty good well and it might have a thicker unit of the Woodford shale than you would expect in this part of the county.
There is a similar well in the southeasten corner of the County in T5N-R5W. Extending southeastward from the Tier 1 areas in Blaine and Canadian Counties would this area be considered a Tier 1 area? I happen to own a few leased mineral acres in Sec 30, T7N-R6W which prompts my question.
JW Anderson said:I've personally paid anywhere from $2000/acre to $4500/acre in Blaine, Canadian, and Dewey counties for the Cana Woodford.
Some areas are better than others. Some of the wells on the western part of the play in Blaine County are very good, but they are almost pure natural gas, with very low liquids content. Although drilling is taking place there to hold leases, most companies prefer areas with high liquids content now, and there are some good areas for that. Also, the western part of the play can get extremely deep, and the wells cost more to drill.
In addition, some parts of the Cana Woodford formation are thicker than others. In the rich Tier 1 areas of Blaine and Canadian counties, it can be over 300 feet thick. In some of the outer areas, 150 feet is more common. In Caddo and Grady and Dewey county, the formation is generally not as thick.
So the best answer is that "it depends" on the location, but you can at least see the range that we're talking about. If you want to provide some specific section / township / range information, I could probably help more.