My wife's cousin owns some mineral interest that she inherited from her first husband's aunt (I know, it is pretty convoluted!). She had forgotten about owning this interest until she received a telephone call a few nights ago from an outfit that offered to lease her interest for $200/ac for 5 years and 1/8th royalty. She owns is a 1/18th interest in a 320 acre tract.
As we live in Louisiana, we are not aware of the activity currently going on in Moffat County. Can anyone be so kind to let us know what is currently being paid for leases in Moffat County in regards to bonus, royalty and primary term. She definitely wants to lease but doesn't want to be taken advantage of. I am an engineer for a small O & G company down in La. so I do have a little exposure to leases, etc. but Ii definitely need some help in regards to leasing in Moffat County. Any help that anyone can provide would be greatly appeciated.
We leased 320 acres in Weld County and another 160 acres in Morgan County. What I would recommend is to learn as much as you can on the Niobrara oil play thats just starting ot gear up. Its mostly in Weld county but in a coulpe years its going to fan out. Thing you need to learn is the difference between directional drilling (old school) and horizontal fracking ( new method). Go to the colorado gas and oil site. in search put in “cogcc” Then on the site go to maps. Click the boxes in the legend for pending and pending 2A. These blue and green boxes are new drilling permits. Then zoom in to any area to see where the action is. All the red dots are older wells and most are not horizontal frac wells.
Shell is offering $400.00 /acre with a 3 plus 2 year lease with 18.5 (or 18%) royalty. That’s the last I heard.
Skip, I have gone to cogcc.com website and do not know how to get to the maps. I do not see an icon. Is it possible for you to post the exact link? Thank you.
Skip Bouvette said:
We leased 320 acres in Weld County and another 160 acres in Morgan County. What I would recommend is to learn as much as you can on the Niobrara oil play thats just starting ot gear up. Its mostly in Weld county but in a coulpe years its going to fan out. Thing you need to learn is the difference between directional drilling (old school) and horizontal fracking ( new method). Go to the colorado gas and oil site. in search put in "cogcc" Then on the site go to maps. Click the boxes in the legend for pending and pending 2A. These blue and green boxes are new drilling permits. Then zoom in to any area to see where the action is. All the red dots are older wells and most are not horizontal frac wells.
Try this, you may need to install a plug-in that the site recommends actually view this page
http://cogcc.state.co.us/infosys/Maps/LoadMap.cfm
Dianne said:
Skip, I have gone to cogcc.com website and do not know how to get to the maps. I do not see an icon. Is it possible for you to post the exact link? Thank you.
Skip Bouvette said:
We leased 320 acres in Weld County and another 160 acres in Morgan County. What I would recommend is to learn as much as you can on the Niobrara oil play thats just starting ot gear up. Its mostly in Weld county but in a coulpe years its going to fan out. Thing you need to learn is the difference between directional drilling (old school) and horizontal fracking ( new method). Go to the colorado gas and oil site. in search put in "cogcc" Then on the site go to maps. Click the boxes in the legend for pending and pending 2A. These blue and green boxes are new drilling permits. Then zoom in to any area to see where the action is. All the red dots are older wells and most are not horizontal frac wells.
Wilmer,
Just went through this. Found that even within Moffat County, location is everything. We had two pieces and one nobody would talk about and the other only one company was interested in. Needless to say, there wasn't much price competition going on. I hope yours is in a hot area. If Shell wants in where your at, that $400 figure sounds good. Good luck to you.