Oil & gas discussion group for those interested in Cheyenne County, CO. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
My siblings and I recently signed pretty much the same deal with Paschal Energy. I don’t have don’t have my tract number handy, but I don’t think we’re far from your interest.
I, also, recently signed with Paschal for the same deal. After having absolutely no interest expressed in my mineral acreage in this area for years, all of a sudden things seem to be popping. I wonder which oil or gas companies have plans.
We have several hundred acres throughout Cheyenne County, particularly south of Cheyenne Wells and both East and West of highway 385. We have had several offers from multiple landmen. The first one started at $50/acre but we turned it down. Our best offer so far, after some negotiating, is $125/acre at 1/8th royalty for 3 years with 2 year option.
My brother in law, who also has in interest in the mineral rights, works for an oil company in Houston as an analyst. He has talked to several of his friends throughout the oil industry who are advising him to hold out as they expect the prices to go higher. Although $125 is a good price for our area with regards to its history of leasing, I believe we are going to wait it out a little longer as we expect the prices to increase. The rumor is that Chesapeake is making a play in this area and I tend to believe it.
just following up with everyone, anyone have a clue who is behind this land grab??
Don’t know. I just wish they’d get it over and get to something. It seems they are scooping up quite a bit to be planning on just holding it, but I’m no expert.
any idea which counties their focusing on? I see we lie in between the mississippi lime and the niobrara, etc so hopfelly theyve found something below to make something work, shale oil, etc. We know there are lagacy assets floating around cheyenne and kiowa, so maybe a zone or two below this area??? all comments wold be greatly appreciated...
i have had a couple offers on my land in cheyenne county to date. One from Paschal and one from Diamond resources. One was $50 NMA w 15% royalty for 5 yr and 3 yr option at $100 and 15%. I also have rec'd $75 NMA and 15% for 5 yr and the same for a 3 year option. I havent signed anything yet but I have a feeling could probably get more on the agreements.
I located a geocommunicator map (link below) and plotted the offers I found posted on this site. If you update a post with your platt info (13S 51W), I will update the map and repost. The offer I received last October was $25 for 5 yrs + 5yr option from Diamond for 13S 51W. I did not accept the offer.
my mother has rights east of Cheyenne Wells and she got an offer from peakview energy with a landmans own company ,offering $100.00 an acre, just wondering if anybody else knows of this outfit, thanks
MEl, off hand i did some digging in our area. looking at roughly 2000 drilling permits but the area is short of the type of rigs they will need to drilling the 5,000-6,000 ft pay zones that are est to be around 600 ft thick of unconventional and conventional zones. Rigs will need to e moved in from kansas. Im in the oil business here in HSouton and we own minerals in Cheyenne for more than 50 years or so. The geology here is similar to the Utica on a depth, pay zone, clay content and vintrinite reflectance Ro%, etc in our area and very promising. all in all, we are in the early stages of the leasing and and all the big fish have been caught into 2012. Hope this helps....
Have an offer from Paschal right now, for SE Cheyenne County, for $75 for 5+5. They don't want to remove the 'Warrant & Defend', or to split my two non-contiguous properties into two separate leases. They also sent a 60 day draft, instead of a check. According to what I have read on this site, these things are not in my best interest. What is the best way to contact other companies, to let them know that I have land to lease, and get some better offers?
Jordan, thanks for the info, the 60 day draft is what we have been told,again thanks for the info.
Have heard lately more activity with Paschal that is $ 100 for 3 + 5 and 15%. There may be activity with others at higher prices by now too.
one more source for insight for Cheyenne/Kiowa County...oil not gas here
Here is current layout of who is leasing and where inCheyenne, looks like over 600 + leases have occured with the northwest portion of our county expected to be auction in a couple of days!
what does auction mean? thanks
our area will be in involved in a state auction on february 16-17, 2012
I’m wondering if Jason Schluter, or anyone else, has additional info on what’s happening in Cheyenne County (especially terms of current lease offerings)? Several leases have just been recorded in the Cheyenne public records.