The current lease for our minerals in 24N - 58E and 25N - 59E is expiring in July and we are wondering what others may have been offered recently. Our 2011 lease paid $1800/acre, 1/5 royalty on a 3 year term. I'd be happy with the same terms on a renewal, if this seems to be consistant with going rates in this part of Richland CO. Input from others would be appreciated!! I am especially interested, as there do not seem to be any recent posts to the Richland Co discussion group.
we are talking to Emerald out of Denver. currently we have diamond, but have a better offer from emerald. Diamond offered 400 an acre. Emerald offered 1200 we are in 24N 58e. We have never had anything close to $1800
Interesting.....Barbara, I am curious what section(s) in 24N-58E are you in? Also, when does your current lease expire?
I ask because there is a possibility we might be able to offer our acreages at the same time, and get improved terms?
Anyone else have experience doing this?
Mark
Mark our offers have been rescinded. We were told the company is not interested in our sections
Barbara, have you leased your sections yet? Is it common to have acreages go without being leased by some company? I was under the impression that acreage is typically all leased by some company.
Harvey
Our lease date is May 24. We just signed with Kracken Oil for $600 an acre - we have acres scattered in sections 3,4,9,10 and 15. Have you had any offers yet?
Glad to hear that you have signed a new lease. Our lease with Transcontinental Oil just expired so we will be contacting other companies to see if there is interest. Our acres are in 22N-54E. Did you work with an attorney or on your own?
My uncle takes care of it.... We go straight through the brokers and tell them the conditions and they tell us the amount.....
I apologize if this is a silly question but do brokers work for the oil companies? We don't live in the area but we did find a site that listed some of the oil companies working in the general area of our acres.
Can't learn anything without asking a question, Harvey!........there are independent brokers (my dad was one), and there are brokers that are employees of the development or other oil companies. Some "oil companies" do nothing but broker (buy & sell ) O&G leases.
Barbara - we were negotiating with both Continental and Kraken and both rescinded their offers recently. Does anyone know why that would be? Any suggestions about what our next step should be?
Barbara Schneider said:
Mark our offers have been rescinded. We were told the company is not interested in our sections
Hi Mark,
My lease for Township 24N Range 60 E, Sec. 29 and 30 comes up for release in Oct, but was approached to lease it
for $1000 an acre. However back in 2010, was pd. 450 a acre by another oil co. I also would be interested in
knowing what the going rate is now. Any help would be appreciated BPL
Beth - I do not have a clue why one drilling company would be interested and another would not be. It seems to be quite common (and totally frustrating). Good luck to you.
Beth Fox said:
Barbara - we were negotiating with both Continental and Kraken and both rescinded their offers recently. Does anyone know why that would be? Any suggestions about what our next step should be?
Barbara Schneider said:Mark our offers have been rescinded. We were told the company is not interested in our sections
Beverly, the $1000/acre bonus is probably a decent deal right now....but please do not let the bonus be the sole reason you lease to one company or another....the rest of the lease terms should be favorable to you as well, or you might wind up "stepping over dollars to pick up dimes" Only an experienced O&G attorney can tell you if you are signing a lease to your benefit or not. ....Beth, every development ("drilling") company, and others use their own petroleum engineers to predict where they feel the most promising sites are, and they are like, well, you know....everyone has their own opinion. This is still not an exact science and one site may look very promising to one company, and worthless to another. The trick is to find someone who thinks Your minerals are the next hot spot!
Hi Mark,
Thanks for your reply. Have been talking to people in Richland Cty, and they are getting more for acreage in the
same area, so will wait and see what continues. Have you received any info on your lease? Thanks again.
Mark Presley said:
Beverly, the $1000/acre bonus is probably a decent deal right now....but please do not let the bonus be the sole reason you lease to one company or another....the rest of the lease terms should be favorable to you as well, or you might wind up "stepping over dollars to pick up dimes" Only an experienced O&G attorney can tell you if you are signing a lease to your benefit or not. ....Beth, every development ("drilling") company, and others use their own petroleum engineers to predict where they feel the most promising sites are, and they are like, well, you know....everyone has their own opinion. This is still not an exact science and one site may look very promising to one company, and worthless to another. The trick is to find someone who thinks Your minerals are the next hot spot!
Yes, we are leasing to the same company for the same terms as 3 years ago. Wait until 30-60 days before your current lease expires, and you'll most likely pick up some more offers.
Hello Mark, I have a lease on 25N 59E. It was just passed down from my Father who recently passed. I am currently waiting on info from my Aunt on the last deal that was negotiated for the lease. My Aunt also received the letter for 4 wells by Whiting. Just wondering if you have found out anymore additional information or where they might be in the process. Ironically, I currently sit Fracs for Whiting over by Stanley. Any info would be appreciated. I will let you know what are lease was renewed for once I find out. Thanks Tre'
Barbara Schneider said:
Mark our offers have been rescinded. We were told the company is not interested in our sections
I was planning on calling Whiting to see if I could find out anything concerning drilling here. What section(s) are your minerals in 25N 59E? Ours are in Sec 7. I'd be interested to know where Whiting indicated the 4 Horozontals were planned for in your Aunt's letter?
Thanks,
Mark Presley
Could anyone help me out with any contact info for possible companys interested in leasing in 25N. 56E Appreciate any info. Thanks
Hi Mark, Our minerals are in the section area T25N, 57E, 1 drilled, 3 more to be drilled, contacted in 2012. Is there renewed activity in "our" area? Does a contract expire on a lease already drilled on? Thank you!