Active Acquisition State
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Arkansas has two distinct production regions: the Fayetteville Shale in the north-central part of the state, which produces dry natural gas, and the Smackover formation in south Arkansas, which has been producing oil since the 1920s. We buy mineral interests and royalties across both regions and in every producing county in the state. The Fayetteville Shale saw a boom in horizontal drilling activity in the late 2000s and early 2010s, and while new drilling has slowed, the existing well base continues to produce significant volumes of natural gas. The Smackover formation in south Arkansas is one of the oldest and most prolific conventional oil plays in the mid-continent region.
Highlighted state with approximate basin locations shown in tan
The table below shows the top producing counties in Arkansas where we are most active, along with the primary operators and target formations in each area.
| County | Major Operators | Key Formations |
|---|---|---|
| Van Buren | Flywheel Energy, Merit Energy | Fayetteville Shale |
| Cleburne | Flywheel Energy, Merit Energy | Fayetteville Shale |
| White | Southwestern Energy | Fayetteville Shale |
| Faulkner | Southwestern Energy | Fayetteville Shale |
| Conway | Southwestern Energy | Fayetteville Shale |
| Union | Murphy Oil, Aethon Energy | Smackover, Cotton Valley |
| Columbia | Murphy Oil, Aethon Energy | Smackover, Cotton Valley |
The Fayetteville Shale is dominated by Southwestern Energy, which pioneered the play and remains the largest producer. BHP Billiton held a significant position that was sold to Merit Energy in 2018. Southwestern Energy's concentrated acreage position and operational expertise have made the Fayetteville one of the lowest-cost gas plays in the country. In south Arkansas, Murphy Oil and Aethon Energy are the primary Smackover operators, maintaining both primary and secondary recovery operations across the legacy oil fields.
Operators ranked by the number of Arkansas counties where they hold the top active-well count. Counties where the operator runs the most active wells link through to the county detail page.
Arkansas lease terms in the Fayetteville Shale typically include royalty rates of 1/8 (12.5%) to 3/16 (18.75%). Arkansas has a forced pooling statute — the Arkansas Oil and Gas Commission (AOGC) can integrate unleased mineral owners into a drilling unit. Under Arkansas integration orders, the mineral owner is typically assigned the standard royalty rate offered by the operator. Smackover leases in south Arkansas tend to be legacy leases with 1/8 royalty rates, many of which have been held by production for decades. Arkansas does not impose a severance tax on oil and gas production, which is favorable for the economics of mineral ownership.
We buy mineral interests, royalty interests, NPRI, and ORRI across Arkansas's producing counties.
Not sure which type you own? Start with our mineral rights glossary for plain-English definitions of MI, RI, NPRI, and ORRI.
Arkansas does not impose a severance tax on oil and gas production, making it one of the most tax-friendly producing states for mineral owners. The Arkansas Oil and Gas Commission (AOGC) regulates drilling and production and has authority over forced integration (pooling) of unleased mineral interests. The Fayetteville Shale has a relatively concentrated operator base, with Southwestern Energy controlling the majority of production, which can simplify the evaluation process for mineral interests in the play.
Arkansas mineral owners occasionally run into questions about severance-tax treatment, dormant mineral statutes, and non-participating royalty interests. These topics rarely drive a transaction, but understanding them helps you read a division order or evaluate an offer. The summaries below are starting points — verify against current statute text before relying on them.
Severance tax: 5% of market value on natural gas, 5% on oil. New high-cost natural gas wells receive a reduced 1.5% rate during a defined initial-production window; very-low-volume marginal wells receive further reductions.
Arkansas counties also impose ad valorem property tax on producing minerals. The state's severance tax rate was raised from 0.3% to 5% in 2008 specifically to capture revenue from the Fayetteville Shale boom.
Statutory citation: Ark. Code Ann. 26-58-101 et seq.
Arkansas has a Dormant Mineral Interest Act (ACA 18-16-401 et seq.). After 21 years of non-use (no production, no lease, no recorded conveyance), the surface owner may file a notice procedure; the mineral owner has a defined window to file a Statement of Claim preserving the interest. Without preservation, the interest reverts to the surface owner.
Statutory citation: ACA 18-16-401 et seq.
Arkansas recognizes NPRIs as cost-free royalty interests. They are subject to the same dormant-mineral-act risk as other interests under ACA 18-16-401 — preservation through periodic Statements of Claim or recorded use is necessary.
Need plain-English definitions? See our mineral rights glossary.
No. Arkansas is one of the few producing states that does not impose a severance tax on oil and gas production. This means that the gross revenue from production is not reduced by a state severance tax before your royalty is calculated, which is favorable for mineral owners. You will still owe federal and state income tax on royalty income and any sale proceeds, but the absence of a severance tax makes Arkansas minerals slightly more valuable on a per-unit-of-production basis than comparable minerals in states with severance taxes.
Yes. While new drilling in the Fayetteville Shale has slowed significantly from its peak, the existing well base continues to produce substantial volumes of natural gas. Southwestern Energy, the dominant operator, has maintained its production base through operational efficiency and selective infill drilling. The Fayetteville's low-cost production economics mean that wells continue to generate royalty income even in lower natural gas price environments.
Several companies are pursuing lithium extraction from the brine produced by Smackover oil and gas wells in south Arkansas. If successful, this could create an additional revenue stream for mineral owners with Smackover production, though the technology is still in the development stage. ExxonMobil and Standard Lithium are among the companies exploring direct lithium extraction in the Arkansas Smackover. We monitor this development closely as it could affect the long-term value of Smackover mineral interests.
The Arkansas Oil and Gas Commission (AOGC) can integrate unleased mineral interests into a drilling unit when an operator has leased a sufficient majority of the unit acreage. Under an integration order, the unleased mineral owner is assigned the royalty rate and bonus terms offered by the operator. Arkansas integration is similar to forced pooling in Oklahoma but is administered by the AOGC. If you have received an integration notice, you may want to consider your options — including selling your mineral interest — before the integration order is finalized.
Yes. We routinely purchase small and fractional mineral interests in Arkansas, including inherited interests from the Fayetteville Shale and legacy Smackover production. Many Arkansas mineral interests have been divided over multiple generations of inheritance, creating small fractional interests. Regardless of size, your interest has value, and we handle all title work and closing costs at our expense.
Many Arkansasmineral and royalty interests are held by heirs who live elsewhere. If that's you, our metro pages address the inheritance, ancillary-probate, and tax mechanics specific to your home state:
See all mineral rights FAQ.
State-specific guides covering the legal mechanics that come up most often for owners considering a sale.