Has the drilling slowed down in Sheridan County or is it just not picking up any due to the rigs tied up in North Dakota or Richland and other counties?
We have a lease nearing option of 3 more years.
Thanks
Jerry:
Don't know if the drilling has slowed down but according to the recent postings on the Montana Oil and Gas website, Sheridan County activity is somewhat slow currently. Yes, Richland and Roosevelt Counties appear to have more activity and yes, rig count remains steady in the ND area as some are drilling on spacing units already HBP. Think a lot of operators tend to drill in de-risk areas which somewhat excludes much of Sheridan County. Over time, I feel drilling activity will pick up over all areas in Eastern MT since many untested zones exits in these areas. Many leases in the Eastern MT area are or will be expiring over the next year. We as mineral owner must stay aware about what's occurring these areas and take time to get best lease terms. I think the best position for a mineral owner is to be expired and ignore any low-ball top lease offers. Time is on our side and we should use it to our benefit.
Charles,
There have been several vertical wells adjacent to our mineral rights and quite a few close, some of which are still active (Lowell Christensen 6-1 34N-57E-22; Lowell State 10-16, 6-16, & 8-16 in 34N-57E-16). As you might remember from my past post, we were left out of royalties from a productive well within a couple hundred feet or less of our property line (Gooselake, West Parrott 1-30 in 35N-57E-30). It's been too long to go back and collect on this from what I understand. We got royalties from Lowell Christensen 1 in 34N-57E-22 quite a while back. Time is in our favor, I agree!
Thanks for the reply,
Jerry
Jerry:
Keep in mind what I said about the untested zones. Currently, the spotlight is on the Bakken/Three Forks and as this eventually fully developed, other areas will be tested and that's where we as mineral owners in the Sheridan/Roosevelt County areas may benefit. It all takes time to develope so as you said, time is in our favor. Just make sure when negotiating new leases, you are aware of what's occurring in your mineral area.
Charlies,
Referring to to non-paid royalties from Gooselake, West Parrott 1-30 well, a freind told me this morning that the same thing happened to his Grandpa but, here in Texas a while back and after 10-15 years later he went back and sued successfully. What is the chance of doing that in my case? I believe they stopped production in about 2006. My cut of the pay would be about $10,000 to $15,000 best we can figure and that is just 1/9 of total interest in our Mineral Right Trust. I did contact the Montana Oil and Gas Government man that someone told me could tell me if our property should be included in that wells spacing and he said it is. I am really ticked off that an Oil Company can get by with this thief and sure would like to make em' pay!
Thanks for any help,
Jerry
Jerry:
Sounds like a case where an oil and gas attorney would have to do some serious research in order to present a case on your behalf. The call is up to you but when you start paying attorney fees, this can get expensive very fast. If your cut is $10,000 to $15,000, and you have solid records to back up your allegations, I would learn what cut the attorney would get to represent you in this matter. When all the dust is cleared, you may win but who is really the winner? Again, the call is yours and if you elect to tackle the situation, know your expenses in winning such a case.
Charlies,
Thanks for the feedback. It sounds like I better do a lot of research and get my Cousins and Brothers minds together on it. We formed Poulsen Trust back in the 80's when our folks gave the minerals to all the kids. There are eight owners in the Trust and we have 1580 acres total. So this could amount to a good bit of money. But, like you say we have a lot of work to do to see if it's really worth it. Now that I have become a bit more educated in mineral rights, leasing and all I keep watch on the Montana Oil and Gas website postings I hope I can keep up with all that's happening around our area. This Mineral Rights Forum and all of you that have helped has been priceless in keeping up and learning as well.
Thanks again,
Jerry
Jerry:
Sounds like you need to consult with your family and make a decision on what actions you, as a family, need to take. Your family has a very sizable amount of acreage and depending on the evidence you hold, it might be worth contacting an attorney. I have used Laura Christopherson who is located in Culbertson, MT. She did a great job for me and I recently had a conversation with her. She stays on the cutting edge of information in and around the MT area. Good luck to you and your family.