Bakken Basin Richland County Montana

I was recently approached in Feb 2009 by an oil company who wanted to conduct a geophysical project on land I hold mineral rights to. Since nothing whatsoever was going on there I agreed to the offer which expires in 2011, and at the same time gives the oil company the right to exercise the lease of the mineral rights at that time. Since the land involves six members of the family, and is divided up equally, other family members have been approached this month from another source wishing to actually lease now, for substantially more than I was offered for my portion of the land. I have not been approached by this second source for an actual lease. Not knowing alot about this subject, can anyone educate or point me in the right direction? The fact that an abundance of oil exists has already been established. Does this recent activity indicate that actual drilling is imminent? How do I know that thie oil is not being harvested without my knowledge?

It does not appear that there is any particular direction for you to move at the present time, since it appears that you granted to Company A a seismic permit or license along with an option to lease.

Company B is apparently attempting to buy leases from those who interest is not burdened by an option, which would of course explain why you were not contacted by Company B.

Can you elaborate on how you can state an abundance of oil exists already? Is this fact or supposition?

Buddy Cotten said:

It does not appear that there is any particular direction for you to move at the present time, since it appears that you granted to Company A a seismic permit or license along with an option to lease.

Company B is apparently attempting to buy leases from those who interest is not burdened by an option, which would of course explain why you were not contacted by Company B.

Can you elaborate on how you can state an abundance of oil exists already? Is this fact or supposition?

Buddy Cotten
www.cottenoilproperties.com

If 3 owners of one-fourth undivided interest in mineral rights in Montana sign an seismic permit with option to lease and the 4th owner does not, can the lease become effective without the 4th owner’s signature? Is the seismic permit valid in Montana or must all 4 owner’s sign.

Buddy Cotten said:

It does not appear that there is any particular direction for you to move at the present time, since it appears that you granted to Company A a seismic permit or license along with an option to lease.

Company B is apparently attempting to buy leases from those who interest is not burdened by an option, which would of course explain why you were not contacted by Company B.

Can you elaborate on how you can state an abundance of oil exists already? Is this fact or supposition?

Buddy Cotten
www.cottenoilproperties.com

How is the ownership of the six members of the family held: joint tenants, percentage undivided interests, etc. Are other family members actually signing leases with other exploration companies?