The other day we received a letter wanting to buy our oil lease in Converse County Wyoming. It isn't much in the way of acreage but they were offering 4000.00 dollars an acre. We currently have it leased and after browsing this forum we did several things wrong but what is done is done. The description is Section 6 township 33 North 70 West 6th P.M.. The offer from so called out of the blue has me wondering what is going on? I can not see that they are drilling on it or that they have even put in a permit to drill: anyone know what is going on in that area of Wyoming?
thanks
Greg
You wrote "buy our lease", yet I suspect the offer is to 'buy your minerals'. If it actually is a lease they want, selling it for $4,000 per net acre is a very good price. However I doubt they're seeking a lease. In general, offers to purchase are not unusual. Some people are always looking to buy minerals anywhere, anytime regardless of activity. In your case there is activity in the neighborhood.
Remember, if I LEASE your minerals I need action (drilling) within a specified length of time. That is I'd only hold the right to your minerals for the duration of that lease. However, if I BUY your minerals I have a stake in the game regardless of how long it may be before any drilling occurs. I might also have an opportunity to lease them and recover some of the purchase price. So carefully consider your situation before selling minerals. Sometimes selling might make sense and $4,000 per acre may be a very good price. However, if you don't need the money... Converse Co is the hottest area in Wyoming right now so don't be in a hurry.
Converse County Wyoming, Sec 6, T33 R70 is part of the Combs Ranch (Deep) Unit which Chesapeake has set up as a BLM Exploratory Unit. One of the reasons Chesapeake has applied for all of these federal units is because they can drill from one section into another. From looking at the Wyoming Oil & Gas Commission web site, it appears to me a well was drilled in Section 7 with a well path NW into Section 6. The well API number is 49-009-28976, Combs Ranch 7-33-70 A 2H. The spud date was 2/14/2013 so it is a recent well. There is a 2nd well shown on the map from this same drilling location but at a slightly different direction -- still in NW direction into Section 6 but at a somewhat different angle. If you read the Chesapeake Energy Quarterly report dated August 6, 2012, you will see that Chesapeake has released information on at least one well in the Combs Ranch Unit which had an initial production of 2450 BOE per day. BOE is Barrels of Oil Equivalent. So it appears Chesapeake likes what is happening in the Combs Ranch Unit. Otherwise, why would they put it in their Quarterly Report.
I don't know where your minerals are in Sec 6, but based on the activity in the area, I am not surprised that you are getting unsolicited offers. These mineral buyers are looking for mineral owners that want money now and are willing to sell to get cash now. They can come up with many, many reasons for you to sell. If you are even considering selling, I suggest you get informed about the activity in the area. Many of these well sites are being built to have 4-6 wells drilled in the same general area. You may own minerals in a hot drilling area and not know it. Also, I warn against paying too much attention to the mineral buyers saying that these wells fall off in production rapidly. Most of these wells are still "confidential " to the public so we can't tell for sure what Chesapeake is pumping. The gas pipelines are completed in some places and in other places not yet. Wyoming will only let the oil companies flair the gas for so long. Oil is being hauled out by tanker trucks. My guess is -- and this is a guess -- these wells are being managed by Chesapeake. There are only so many roads, so many trucks and so many hours in a day. I think it will be a while before we know the true value of the minerals in this area. When unsolicited buyers show up offering attractive money, somebody thinks these minerals have value beyond what they intend to pay.
I own minerals to the East of you. Chesapeake is also drilling in our area. If you want to talk, send me your contact information and I will give you a call and tell you what I have learned doing my research.
Good Luck!
John Linden
Alamo CA
Thanks so much for your information, I will try to get with you some time.
John Linden said:
Converse County Wyoming, Sec 6, T33 R70 is part of the Combs Ranch (Deep) Unit which Chesapeake has set up as a BLM Exploratory Unit. One of the reasons Chesapeake has applied for all of these federal units is because they can drill from one section into another. From looking at the Wyoming Oil & Gas Commission web site, it appears to me a well was drilled in Section 7 with a well path NW into Section 6. The well API number is 49-009-28976, Combs Ranch 7-33-70 A 2H. The spud date was 2/14/2013 so it is a recent well. There is a 2nd well shown on the map from this same drilling location but at a slightly different direction -- still in NW direction into Section 6 but at a somewhat different angle. If you read the Chesapeake Energy Quarterly report dated August 6, 2012, you will see that Chesapeake has released information on at least one well in the Combs Ranch Unit which had an initial production of 2450 BOE per day. BOE is Barrels of Oil Equivalent. So it appears Chesapeake likes what is happening in the Combs Ranch Unit. Otherwise, why would they put it in their Quarterly Report.
I don't know where your minerals are in Sec 6, but based on the activity in the area, I am not surprised that you are getting unsolicited offers. These mineral buyers are looking for mineral owners that want money now and are willing to sell to get cash now. They can come up with many, many reasons for you to sell. If you are even considering selling, I suggest you get informed about the activity in the area. Many of these well sites are being built to have 4-6 wells drilled in the same general area. You may own minerals in a hot drilling area and not know it. Also, I warn against paying too much attention to the mineral buyers saying that these wells fall off in production rapidly. Most of these wells are still "confidential " to the public so we can't tell for sure what Chesapeake is pumping. The gas pipelines are completed in some places and in other places not yet. Wyoming will only let the oil companies flair the gas for so long. Oil is being hauled out by tanker trucks. My guess is -- and this is a guess -- these wells are being managed by Chesapeake. There are only so many roads, so many trucks and so many hours in a day. I think it will be a while before we know the true value of the minerals in this area. When unsolicited buyers show up offering attractive money, somebody thinks these minerals have value beyond what they intend to pay.
I own minerals to the East of you. Chesapeake is also drilling in our area. If you want to talk, send me your contact information and I will give you a call and tell you what I have learned doing my research.
Good Luck!
John Linden
Alamo CA