I was wondering if anyone who owns minerals in the Eastern Montana area has been approached with top lease offers or new leases. I know that the permit activity has increased in this area but I'm also aware that numerous leases will reach expiration dates this year. Also, I was curious if anyone has heard of any new operators interested in this area of Montana?
Charles
Just signed a lease with Slawson Exploration. I have min acres in Richland county, T21N R58E sec 33 and 34,
T20N R58E sec 2 and 11.
Del:
I knew Slawson was one of the active companies in this area but they are drilling very little vs the number of acres in Richland, Roosevelt and Sheridan Counties. I'm wondering if several operators will begin an extensive developement of these areas sometimes in the near future. I realize that rigs are still tied up in the ND area but I have heard that additional rigs would be headed into the area, primarily from some of the gas drilling operation locations. As these leases expire, the mineral owner should come out ahead in regards to much higher bonus rates and higher % royalty rates.
Charles I believe this area will be more active in the next couple of years, that’s what I have been hearing. I am a little south, but I know Fidelity will be drilling some wells in the area. I have enjoyed reading your posts and comments this past year , it was very helpful in negotiating my own lease. Thanks for your knowledge on oil and gas minerals.
Del:
Thanks for your comments as I hope that someone benefits sometimes from my posts. Roosevelt and Sheridan Counties are where the majority of my minerals are located thus I tend to try and keep abreast of what's going on in these areas. I have been leasing these areas since 2004 and I keep hearing positive remarks about the possible surge in these areas. The one good thing about this process is that the bonuses get higher and the % royalty goes up. I also have minerals in Williams County, ND but not near the amount that is in MT. It just takes a long time to develope areas and as long as oil remains at the current price, the drilling and developement will continue. Thanks again and good luck on your side.
Del Nollmeyer said:
Charles
I believe this area will be more active in the next couple of years, that's what I have been hearing. I am a little south, but I know Fidelity will be drilling some wells in the area. I have enjoyed reading your posts and comments this past year , it was very helpful in negotiating my own lease. Thanks for your knowledge on oil and gas minerals.
Recently leases were sent out to our group who own the mineral rights in Dawson county. The company
was Hunt-Petro, but they only offered $50/acre and 15% royalty. Hard to get so many people together and
negotiate a better lease.
peggy:
Looking at the State Auction site for Montana (12/6/11); bonus rates went from $32 - 56 in T15N to $320 - 90 in T17N - T22N. You didn't state your Township/Range but it appears from the State Auction results that some parts of Dawson County is much hotter than others. In general, the bonuses from the State Auctions bring higher bonus amounts than what you will recieve but I would shop around before negotiating a lease. I think the company who contacted you was Petro-Hunt who has been present in the drilling activities in ND. I would also attempt to coordinate the negotiations with the others involved in these minerals. Good luck!
peggy Rue said:
Recently leases were sent out to our group who own the mineral rights in Dawson county. The company
was Hunt-Petro, but they only offered $50/acre and 15% royalty. Hard to get so many people together and
negotiate a better lease.
I have 6 acres of mineral rights in Richland Co Montana township 21 range 59 I recently signed a lease for a bonus of $375.00 an acre and 1/8 royalty i believe it to be fair i believe the company who had the landman contact me was Slawson Exploration "Im not for sure if i spelled their name right" anyways it was a 3yr lease so im hoping i made a wise choice good luck to ya.
Dell if you are willing could you tell me what your royalty and the bonus was per acre it looks like we have very close land mine is T21N R59E sec26 I would love to hear any and all input you have regarding our area i was told by the landman that a permit was obtained by the oil company Slawson Exploration for the drilling of the well i am new to this and like i said would appreciate any thought or info you have thank you
Del Nollmeyer said:
Charles
Just signed a lease with Slawson Exploration. I have min acres in Richland county, T21N R58E sec 33 and 34,
T20N R58E sec 2 and 11.
Theresa:
Looking at the map of T21;59 area, there is several producing wells in the immediate area, some possibly older verticle wells. As for your lease, the $375.00 bonus/acre appears to be on the "low" side but the 1/8% royalty is definately on the low end. Most leases I believe are going for 15% - 20% royalty. The 3 year lease is normal. If you have additional acreage in the area, be sure to do some research in regards to the current rates and never take the first deal as I always counter offer. Good luck and hope you get a great well.
Theresa It looks like they will be drilling in sec 24 and13. Very close to you. If you have any more land I think you can do a little better. Theresa Hennen said:
Dell if you are willing could you tell me what your royalty and the bonus was per acre it looks like we have very close land mine is T21N R59E sec26 I would love to hear any and all input you have regarding our area i was told by the landman that a permit was obtained by the oil company Slawson Exploration for the drilling of the well i am new to this and like i said would appreciate any thought or info you have thank you
Del Nollmeyer said:Charles
Just signed a lease with Slawson Exploration. I have min acres in Richland county, T21N R58E sec 33 and 34,
T20N R58E sec 2 and 11.
I apologize i meant to say 375.00 for each acre per bonus and my royalty was for 18% not 1/8 i guess im disappointed to hear i am on the low end for the bonus but if 18% is fair than im ok with it as im sure in the long run hopefully that is what counts thank you for your input any and all is appreciated as i sold 6 acres of my mineral rights about 6 years ago and boy do i wish i had not but live and learn i am just glad i didnt sell these. Thanks again charles s mallory said:
Theresa:
Looking at the map of T21;59 area, there is several producing wells in the immediate area, some possibly older verticle wells. As for your lease, the $375.00 bonus/acre appears to be on the "low" side but the 1/8% royalty is definately on the low end. Most leases I believe are going for 15% - 20% royalty. The 3 year lease is normal. If you have additional acreage in the area, be sure to do some research in regards to the current rates and never take the first deal as I always counter offer. Good luck and hope you get a great well.
Does anyone know the name and exact location of the Slawson well being drilled in T30N;R58N area? I think XTO has permitted a well to the South.
We've just been offered a renewal for our 320 acres located at T28N R51E and S22&28. Don't know what to think about Fortworth - are they a lease hound that is just planning on selling it off or are they a company that actually develops things? They offered $150/acre bonus right now with 1/6 royalty and 4 year term. Seems a little low based on what I've seen here, but would like to know if you have heard any details on what we should expect. Lastly, do you have any recommendations on other operators in the area near Poplar that we could shop it around to? I may contact Samson, but who else? Any help would be great.