Panhandle leases out Tonkawa shallow rights

Leased out: Panhandle leases shallow rights in Oklahoma properties

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Luke Johnson

 13 April 2012 20:47 GMT

US explorer Panhandle Oil & Gas said it has leased out the shallow rights to 2846 acres in the liquids-rich Tonkawa play in Oklahoma to a large independent producer for about $5 million.

Panhandle will keep an 18.75% royalty interest from all future production; the deal does not include any existing production or any of Panhandle’s booked reserves.

The Oklahoma City-based company also retains the deep rights  to deeper zones, including the Hogshooter, Cleveland, Marmaton and Granite Wash formations.

The leased rights extend from the surface to 100 feet below the base of the Tonkawa, also known as the Virgilian.

The acreage, which was leased to an unnamed “large independent”, is in Roger Mills County, Oklahoma. The lessee paid  about $4.98 million for the rights for three years, with an option to extend to a fourth. 

The lessee…

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