Hi all,
Just got leasing inquiry from Hal Smith & Associates working for Marathon Oil. Wants a lease for $850/acre bonus , 3 yr lease with 2 yr option at 3/16 royalty. Does that match up with what's going on in that area??
Andy, the only thing I see in 1N/6W is Marathon plans to drill sec 25. Pooling has not been done yet so don't have numbers on that. In 1N/5W Marathon pooled sec 16 for $1250-3/16, $850-1/5. In sec 28 they paid $1000-3/16, $800-1/5. If 25-1N/6W comes in good the lease offers will most likely get better. You might want to wait and see what sec 25 pools for. I wouldn't even consider the 2 year option, you could leave a lot of money on the table between now and 2016.
What part of Stephens are you in? Citation has been pooling and leasing in 2S-4W for dewatering the Hunton (and holding the Woodford).
Thanks Michael. Think we'll wait a bit. I'm not as concerned about the bonus as I am the royalty%. Do you know if Marathon has a spud date for the sec 25 well?
All I saw was applications for spacing and location exception no pooling so will probably be awhile before they get started.
Bearcat has been the most active group leasing in 1N-6W, but for Continental. Marathon did pick up quite a bit of section 24,25, and 36. I am a bit surprised to see Hal Smith leasing for Marathon instead of BlueStar. Section 24 appears to be one that Continental and Marathon will be fighting over.
If I were in your shoes, I'd see if I could contact someone at Bearcat before leasing. Finding the right one might be difficult.
I also like your idea of waiting. I've been doing the same thing on some acreage just NW of yours.
Thanks Michael & Rick. Think I might just drop a note to Bearcat to feel them out. I've got several leases with Continental up in N.D. and they seem pretty easy to work with.