Is that normal? How long between getting the permit and drilling usually?
Maybe oil prices are slowing them down.
Karla, I am no expert but it seems that in a lot of the horizontal drilling they are going below the formations they are getting oil from now and getting it from the shale formation below. I have interest in the springer Purdy unit and it would be great if they did a horizontal well there. Since Merit holds my lease there, I am not sure if Merit owns the formations below or not. Tom
My family has just received an offer on our mineral rights in Garvin, CO and we are not sure what the going rate is for lease bonus and royalties on oil and gas in this area. We want to make an informed decision before signing any lease agreement. Can anyone advise what good terms are?
Angela, A lot of factors determine value. Please give us the section, township and range and maybe someone will have an idea about the area.
Newfield 3Q14
Thanks Hutch. Sounds like good stuff for our SCOOP! Darla, I sent you a friend request. I would like to talk to you when you have time.
Actually from Linda, she asked me to post it.
My family has just received an offer on our mineral rights in Garvin, County and we are not sure what the going rate is for lease bonus and royalties on oil and gas in this area. We want to make an informed decision before signing any lease agreement. Can anyone advise what good terms are?
The location is Golden Prospect: Township 1 North -Range 2 West Section 01.
There havenât been any checks for these rights in over 20 years. A landman contacted us about leasing the rights on behalf of the Cejas Corporation. the legal description is really long but we have 14.23 net mineral acres. Do you have any advice on how to find out if there is current drilling in that section?
Angela, I did a 9 section search around section 1 and the only drilling in the last 3 years was by MacKellar in the E/2 NW/4 of Section 1 in 2012. I believe the leasing being done in that area is being done in the hopes that the âbig boysâ will come in and drill the deeper wells. So, the questions you have to ask yourself are: If I lease cheap now will I miss the bigger bonus from âthe big boysâ in the next three years? Will it take longer than three years (if they come to this area at all) for the bigger leases to be paid here? At this time Ceja is the only company leasing in that area.
So essentially they lease the land and only pay the bonus unless they drill and produce product, correct?
Kirk, the only lease on record was back in the 1950âs and I didnât see a lease bonus on that contract. There havenât been any payments to my family members in many many yearsâŚI was mistaken it has actually been over 30 years. Can anyone tell me what the average rate is for a lease bonus per mineral acre?
Angela, It is totally dependent upon where your minerals are. So you need to give a section, township and range for us to help. It varies widely from east to west.
Angela, Not sure of your specific legal description in Section 1, but a lot of the section is held by production from old wells. Make sure you are not receiving any checks (even once a year) from this section.
Darla, not in the ninespot but CLR is taking some leases in that township. Some pretty nice offers have been made for 23-1N/2W and I got a third party offer for 26-01N/02W.
Angela, you get the bonus regardless. Itâs kind of like putting down a deposit to hold the minerals. If they drill and produce you get paid royalties on the sales from the well.
That depends on the area. I can do a little research. I will send you a friend request and we can talk further.
I read an article from Seeking Alpha today that mentioned NFX has a conference presentation tomorrow morning @ 9AM on their website.
Not exactly Angela. They lease the property and pay you a bonus up front. IF the property is drilled within the lease term (usually 3 years) then they pay you a percentage of everything they take out. However, if there are already old wells there, the lease bonus would have been paid long ago and you are bound by the terms of the lease that took place âback thenâ. Some old wells only pay once a year because production is so small.
Angela, there is no drilling currently in 1-1n-2w. CLR drilled a well with the SHL in the NW corner of 30 1N-1W. The well was drilled to the north along the west edge of 19-1N-1W. The NW corner of 19-1N-1W is two miles south of the SE corner of 1-1N-2W. The name of this well is the Burch and has just been completed in the last month. I can give more detailed info on this well to anyone that sends me a friend request. As far as offerâs go, had a first offer in 31-1N-1W a while back for 250-350. Thought that was a low offer then, know it was now.