Even with oil prices in the $45 range, oil and gas developers aren’t backing off from paying high prices to drill on land in Oklahoma’s two big oil plays, the STACK and the SCOOP.
As The Oklahoman reported this week, two companies recently paid more than $1 million each to do drilling in Kingfisher and Garvin counties. In both cases, the land was owned by the state School Land Commission.
Houston-based Paloma Partners IV paid $7,000 an acre for 160 acres in Kingfisher county. Tulsa-based Armor Energy LLC paid $6,500 to drill on a quarter-section in Caddo County. Forty acres in Garvin County went for $13,000 an acre.Kingfisher County.”
Of course, the prices pale compared to what’s being paid to drill on land in the Permian Basin. As Bloomberg News reported this month, prices in the Permian have hit $60,000 an acre. Do the math. The same quarter section of land in Kingfisher county that brought $1.1 million would bring nearly $1 billion in Texas.