Blaine County, MT - Oil & Gas Discussion archives


#1

Blaine County, MT oil & gas discussion group. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.


#2

HI there.

I have mineral rights in Blaine County, MT.

Just received a Oil and Gas Lease Proposal in the mail this week.

As I live in Washington state, I'm curious what type of activity (or rumors of activity) is going on? And what a "fair" lease proposal would look like?

I'm suspicious of the proposal that I received.

Thanks!

John


#3

I’m curious as well. I live in Oregon and recently got a proposal from Lone Wolf energy. I know that prior leases on my mineral rights were 12.00 per acre but that was 5 years ago. I’m trying to find out the going rate. If I get info I will post it. Please do the same if you get info.
Brandy


#4

I will. Thanks.

BTW: My proposal was LoneWolf too.

- $10.00 per acre

- 1/8 royalty

- 5 years


#5

Mine was the same. However they tried to only pay me for 148 acres and I have 1554 acres. I declined and asked them to do some homework. All the previous leases were for the 1554 acres so I don’t know if they thought I was uneducated about what I have or if they made a mistake.


#6

Hopefully, they just made a mistake.. (a very large mistake).

Did you try to renegotiate for $12 an acre, or more?

I haven't talked to Lone Wolf yet, but it just seems that the $10.00 per acre /12.5% royalty /5 year lease term/ is your standard low-ball offer...

Good luck to you.


#7

It is low… I’m not excepting it.


#8

I am a landman working in Glacier county. I have been approached by several mineral owners from surrounding counties looking to lease. I was curious if any one knows who Lonewolf was representing, or who is drilling in the area. I have some companies but would lie to be able to shop these leases to as many companies as possible and get the best deal for everyone involved.


#9

I meant to say I would "like" to be able to shop these leases. I will not be doing any Lying :)


#10

In 2006 they rep A company out of Canada. I’m not happy with lone wolf at all.


#11

I'm not sure who Lonewolf is representing... curious to find out myself. Also not sure who is drilling in the area.

Our current lease expires in May 2012. It was from Montana Land & Exploration out of Calgary AB. (I heard they went out of business).

Lonewolf sent us a lease proposal on our mineral rights which was 153 acres net, out of 920 gross. How am I supposed to know which 153 acres they are trying to lease?? :-)

The Lonewolf "offer" is only good for 30 days.. We are letting it expire.. and the old lease expires in May, 2012. Might just have to wait this out.

** If you're shopping leases, I'm curious to hear if you are successful, and what you're able to get.

Thanks!


#12

I’m curious too! All of the years prior my leases have been for the full 1500 acres of mineral rights I have. I’m not just going to lease 148 of them. I think it’s a bit shady. I’m going to start posting and calling other companies. I will update here si lonewolf doesn’t continue to try and swindle Blaine county mineral right owners.


#13

Folks, my thoughts are DO NOT LEASE for these low offers. These offers ($10-12/ac) you are talking about don't warrant you tying up your minerals especially for 5 year lease terms which have been posted on this thread.

When offers are this low you are likely dealing with flippers/investors who get out way ahead of the curve and quietly lock up as much acreage as possible as cheaply as possible.

Also, I don't know Lone Wolf, but you need to investigate anyone that you speak with. So I Google Lone Wolf, now granted I don't know if the are LLC, Inc. Co (and this matters). But anyway, I find this on Google.

https://www.secure.psc.state.pa.us/releases/members/index.cfm?page=ReleaseDetail&id=779&ReleaseType=&ReleaseDate=&ReleaseYear=&Desc=&Rescind=&CFID=12894&CFTOKEN=32783eb9eeb6a4c2-3C6BA601-5056-A502-4926667621F79394&jsessionid=8430c1619bad30a4bd1e7e103b6b21386e11

Please be careful. When the prices are THAT low you are in no rush, so take your time and research mineral leasing. Now here's the thing, your minerals are worth what the market will bear. So it is possible that today, LW is the only firm leasing - so $10/ac might be the market value today. But if you have the geology and you've got hyrdrocarbons (they are practically everywhere) then others will come. Use this time to learn. Also, keep in mind there is more to the deal then the sign bonus, royalties are important of course, but the meat of the lease is critical - don't overlook it. work with an experienced expert gas/oil attorney. Start talking to your neighbors and form as large a land owner group as you can - there is power in numbers. Forget about $10/ac.

Good luck,

Wilson


#14

Wise words Wilson. The per acre signing bonus is not to be scoffed at, but if there is production then that is going to be a very small part of the pie.

I am researching a bit to figure industry trends in our area to see what the signing bonuses should be. Right now I am seeing them all over the place and a lot has to do with the specific area and how stronlgy the companies feel there is likely to be good production. There are still a lot of horizontal wells considered wildcat. They are wildcat even in areas that have wells because the original wells were vertical and the lease amounts will reflect that.


#15

By the way the Lone wolf Energy in Wilson,s link is not the same Lone Wolf working this area. They are from Billings.

http://www.lonewolfenergy.com/LWE/Lonewolf%20Energy.html


#16

OK the company in question is importantly named: Lonewolf Energy, Inc. When researching a company the EXACT name is important. But here is a little info I quickly learned. Conclusion - they look legit.

First, always start at the state's agency for business registry. Here is the link to Lonewolf Energy LLC.

https://app.mt.gov/cgi-bin/bes/besCertificate.cgi?action=detail&bessearch=C087349&trans_id=besa1208615543279b401

It was formed in 7/1996 and Dissolved in 11/1996 and now inactive. But this coincides when they changed the business structure from LLC to Inc.

https://app.mt.gov/cgi-bin/bes/besCertificate.cgi?action=detail&bessearch=D088483&trans_id=besa1208616293219b301

That is a good sign.

The LLC Registration info also indicates Talbert Sizemore as the agent. Other websites indicate that Talbert also goes by the name "Trent". who is listed as CEO on the website that MarkDickson posted.

The INC. Registry information lists Brian D. Lee as the agent. Researching him I find he is an attorney out of Shelby, MT and he and his office is associated with gas and oil industry - which is also a good sign.


Here is an article about MT state auction activity in 3/2007. It mentions Trent Sizemore, but not Lonewolf and that they are leasing on behalf of a company out of Canada.

http://www.oil-gas-news.com/index.php?module=announce&ANN_user_op=view&ANN_id=144

So I would consider it a good sign that there is a historical reference to Mr. Sizemore's industry activity - and locally.

So after a brief investigation (not one that can be considered 100% conclusive -so don't sue me), but Lonewolf Energy, Inc. looks legit. The next level of investigation, since they don't appear to be a producer, would be to determine if they are investing on their behalf with the intent to flip the holdings or are they now leasing for a client, and if so, who?

Good luck all.

Wilson


#17

I believe my family has minerals in Twship-37N Range 25E which were purchased in the 1950's. Sec. 1,2,3,4,10&11 w/ a total of 700+ acres. Can anyone recommend someone who could do a mineral owner search if I provide names and dates? I'm Executrix of an estate which does not have much cash but would like to verify our ownership by researching the deed which purchased these minerals and following the sales. thanks


#18

Louise I would start by contacting the Blaine County Clerk at the courthouse.


#19

I am a relative newbie to the royalty world and have a general question that should apply to all Montana counties. I recently acquired a 1/4 interest in 240 acres in Glacier County, T30N R8W. The land is unleased, but has in the past been leased. My question is who of the various interest owners decides how and to whom to lease? Is it possible that several leases would cover the same 240 acres? Is there any leasing activity in that area? I've seen Newfield has quite a bit a little to the north.


#20

Good Morning!

Got another Oil and Gas Lease Proposal in the mail yesterday.. Did anybody else?

Note: Our old lease expired last year, and this is the second proposal from the same company... we let the other offer expire without calling/replying.. so, we are currently unleased.

My concerns on this lease proposal are how they are wording the royalties on oil vs. gas. They made a very generic offer on oil of 15%. It is a short little statement. The proposed offer on gas, is very detailed and they offer 1/8. (12.5%, I thought it was strange how they said 15% for oil but "1/8" for gas, like I wouldn't do the math), and all the verbiage implies that the royalties are paid at the wellhead, and all post-production costs/expenses are to be borne by Lessor and Lessee in proportion to their interests in the proceeds of the sale of gas.

Just looking for validation, I suppose. Not a good deal?? and they are really wanting gas, and not oil? How receptive are these companies to changing verbiage.. never actually talked to one. New to this.

Thank you, and good luck to the Seattle Seahawks today!! :-)