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Arkoma Basin
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Arkoma Basin Fun Facts and Statistics
- 1902: The first natural gas was discovered in the Arkoma Basin near Mansfield, Arkansas.
- 1910: Poteau Gas Field was discovered. Le Flore County Gas and Electric No. 1 Hill in Hartshorne Ss on Poteau Anticline.
- 1912: Red Oak Gas Field was discovered. Gladys Belle O&G Co. in Hartshorne on the Brazil Anticline.
- 1914: Word “structure” was first used in the Cushing Field.
- 1914: Redden Oil Field was discovered.
- 1921: Dake first suggests Ouachitas result of thrust faulting.
- 1929. Wilburton Gas Field was discovered. Limestone O&G No. 1 Nettie McCurray in Hartshorne on the Wilburton Anticline.
The Arkoma Basin in Oklahoma is a peripheral foreland basin that extends from central-western Arkansas through southeastern Oklahoma. The oil and gas Arkoma basin runs between the Ozark Uplift and Oklahoma Platform to the north and the Ouachita Mountain Range to the south; which covers an area of nearly 33,800 square miles.
Along the southern edge of the basin, the Choctaw Fault acts as the boundary that separates the mountain ranges from the basin itself. The Arkoma Basin is 1 of 7 that lie at the front of the Appalachian and Ouachita mountains. When it comes to natural gas production in Oklahoma, the Arkoma basin accounts for the the fourth-largest in production. Oil has been extracted locally, but not on a commercial scale equal to the produced natural gas in the basin.
The first natural resource discovered was actually coal. For more than thirty years, coal was used commercially within the basin and performed strongly as a consistent producing commodity. The surface mapping of coal seams in the early part of the 20th century eventually lead to the discovery of sub-surface material that precluded the presence of natural gas.
Oil and gas were first discovered in the Arkoma Basin in March 1902 in Sebastian County, Arkansas. However, the first gas commercial well drilled in Oklahoma was completed in 1910. In both states, oil and natural gas are produced from the Devonian to Carboniferous aged rocks. The Atoka sandstones can be seen throughout both the Oklahoma and Arkansas portions of the Arkoma Basin. It is believed that gas formation occurred prior to thrust faulting.
The Red Oak natural gas field exist on the axis of the Brazil anticline northeast and to the north of the town of Red Oak in Latimer County, Oklahoma. The southward San Bois fault, located along the northern edge, is the second local structure associated with the field. Most of the displacement associated with this normal fault occurred during the deposition of the Atoka formation between the Spiro and Fanshawe sandstones. This is indicated by the growth of that section along the fault. This gas field is located in the center of the Arkoma Basin where deep marine facies were not consumed by subduction.
The Red Oak field is the largest natural gas field within the Arkoma Basin and the fourth-largest natural gas field in the state of Oklahoma. As oil and gas exploration began data shows the first well was drilled in 1912 to a total depth of 1,500 targeting the Hartshorne formation. Prior to 1959, oil and gas exploration would typically consist of an oil and gas exploration company drilling shallow wells ranging from 1,000 ft to 1,500 ft were drilled. In May 1959, Midwest Oil Corporation spudded the No. 1 Orr and drilled into what was later called the Red Oak Sandstone.
The No. 1 Orr continued drilling past 11,510 ft. reaching the Sprio sandstone. Within two years, 25 development wells had been completed and ultimate gas recovery was already estimated at more than 1.1 tcf, even though all wells were shut in because there was not yet a pipeline to the field. Of those estimated reserves, 938 bcf were assigned to the Red Oak sandstone and 182 bcf were assigned to the Spiro sandstone.
This allows petroleum geologists to map the amplitude change base on a high-gamma ray (HGR) log. This implementation and innovation further help in the application of EOR (enhance oil recovery). 3D seismic was done and the result of the survey greatly varied. The goal of this type of work is to identify areas for Arkoma companies to increase their working interests and specifically operate new wells in Southeastern Oklahoma.
For future assessment, in 2009, The independent Potential Gas Committee acknowledged growth in the nation’s available gas resources. Then last summer, when it issued a resource-based estimate of 1,836 trillion cubic feet – the highest in the committee’s 44-year history. The result of the research backs a huge amount of undiscoverable resources in the Arkoma Basin.
Arkoma Basin Map
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Selling, Leasing, and Creating Value
Owners of Arkoma minerals with royalty interests or mineral rights within the Arkoma Basin may be approached by a gas exploration company as they begin to contact owners to negotiate an Arkoma Basin oil and gas lease. In order for these operators to produce oil or drill for gas production, they must first make an offer to lease the minerals they intend to specifically operate.
Currently, these lease offers will most likely come from one of the following Arkoma companies or their brokers (Calyx Energy LLC, Canyon Creek Operating, Silver Creek Oil & Gas LLC, Trinity Operating, Merit Energy Company, Citizen Energy). Each lease offer typically includes a lump sum upfront to lease and access your minerals paired which are typically set by current oil prices and lease market conditions along with a specific royalty percentage which explains what oil and natural gas royalties percentage the mineral owners will be paid if any wells are completed during the lease term.
Mineral owners with enough expertise can in most cases can negotiate the lease bonus, delay rentals, and royalties on their lease that suit their appetite for risk in order to achieve what they feel is the best price for them.
In some cases, mineral owners in these basins may decide to sell their Oklahoma Mineral Rights to one of these Arkoma companies before wells are drilled, or before receiving royalties on new wells. Investors and companies interested in working interests, royalties, or minerals will typically contact mineral owners and mineral owning businesses during drilling and before division orders are issued in order to create the most value for both parties.
Without having the “mineral scoop” like many investors it’s tough for an Arkoma Basin mineral owner to know if they should sell or not and what their minerals are worth on the open market. This is precisely why we created www.redriverhub.com as the first safe and secure mineral exchange for owners in Oklahoma and Texas interested in selling to create maximum value for their minerals. Signing up is free, and there is no obligation for our customers to sell.
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