We are in the process of leasing some minerals. Most of the companies are offering 3/16 royalty, while one has offered 1/5. I'm wondering, has anyone received 1/4 or is not an option?
I have one with 400 per acres @ 1/5 or 500 acre@ 3/16. I have seen some acre prices range from $2000 - $5000 per acre from a recent article.
Have you seen any with a 1/4 royalty?
It is occasionally available in the better locations, but the majority of the Stack pooling orders have not had 1/4 as an option.
John, What area of Kingfisher County has the bonuses been $5,000?
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Put two more big wells on the list of those drilled by Newfield Exploration in Kingfisher County. The biggest well produced 2,547 barrels a day when it was completed August 10. The well, located afew miles west of Okarche had a spud date of June 22 and drilling was finished July 10. The second well produced 2,098 barrels of oil on completion, according to the completion report filed and published this week at OK Energy Today. (See completion reports))
The Gill well is located about two miles southwest of the town of Loyal and also had gas production of 1,201 Mcf and 1,750 barrels of water a day.
The well had a spud date of May 21 and drilling was finished June 11. Completion was dated July 27.
Newfield Exploration, based in Houston, Texas has drilled numerous wells in the 2,000 barrels or more range in Kingfisher County, its favorite county in which to drill. The company is actively pursuing more drilling sites in the county as well as west toward Woodward. Unconfirmed reports indicate the company has paid $2,000 an acre to lease farmland in the area. One recent report claimed the owner of one quarter section of land received $5,000 an acre for a tidy check totaling $800,000. The owner of land nearby swears it’s true.
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This came from OK energy news letter.
The $5,000 and $6,000 royalties were in or adjacent to 16-17N-9w and other hot areas probably. I have minerals in this section, so I know what was paid near me. These were paid before or just after the fall in oil prices. However, with the Gill well which is just across the road from us hitting at 2100 barrels of oil and two others a mile away that reportedly are big wells also, that figure could be reached again. Most likely all the leases that Newfield has now will be drilled to hold production. Good for getting a well, not good for renewing a lease. I'll take the production any day....By the way, I hope you all will subscribe to OK Energy Today. My company, Radio Oklahoma Networks, produces it for the parent company, Griffin Communications.