I have a lease coming due in 2019 and would like information on what to expect for this region.
I have a quarter section. Any thoughts on Kaiser-Francis?
We will need to know where you lands are located in order to give you any kind of a valid response.
Your full legal description.
Kaiser-Francis is a fine company. Been around forever.
T12North R63West
State? County?
My apologies, Weld County Colo
Really need a Section number to go along with that. Otherwise you haven't sufficiently narrowed it down
OK, here is the legal description from the tax statement.
8183 NE4 22 12 63 (2R).
Here's a map showing your minerals in yellow. The producing wells are shown with green circles that are scaled to show the amount of oil they will make. There hasn't been any drilling here since 2012 and unfortunately the wells nearest to you are poor wells and probably lost money, even at 2012 oil prices. You can see how there is a NE-SW line that separates the good wells from the poor ones. Unfortunately your minerals look they are just barely on the wrong side of the line.
There is a geological reason why the Niobrara produces in some areas and not in others. It just doesn't work everywhere.
Bottom line, you might get leased again, but you might not. I would echo what Mr. Tooke said about Kaiser-Francis. They are a top-notch Company.
Good luck.
Not what I wanted to hear but Thank You. This may be an ambiguous question but would you have a ballpark on what the mineral, water, and surface interest may be worth?
Gary,
Steve may know more about this than I do, but a friend just told me that the two purple lines in the attached maps indicates wells that have recently been drilled or that are presently being drilled.
I haven't tried to look up Status of the two wells yet or whether they have been completed, but you may have some good surprises in store.
On the mineral, surface and water rights might be worth I would have to ask around. Do you own the entire 160 acres in fee?
Charles is absolutely correct. I should make sure my database is up to date before replying. My fault.
Interestingly enough, it appears that those wells are targeting the Codell formation rather than the Niobrara. There doesn't appear to be any Codell production in your immediate area, but there are excellent Codell wells about 8 miles to the West of you, and some very poor Codell wells about 4 miles to the East. If the drilling is successful, your minerals should share in the production from the two wells that are under your lease.
These will be interesting wells to follow.
I wasn't attempting to show you up, Steve. Hope what I posted didn't sting.
A friend of mine in Nebraska had to walk me through the paces of using Colorado's website. Great system, but completely new to me. She knows it well enough to walk me right to what I was looking for while she was driving!
You certainly appear to know more than I do about Colorado. Where are you located?
Charles, no offense taken. Glad you caught my mistake so Gary didn't go away with incorrect information. I'm located in Montana, but I work all over the Rocky Mountain region.
Gary:
As a follow-up to your last question, I wouldn't begin to venture a guess as to the value of your minerals until we see the results of these new wells.
I have 1/2 section just north of you in 30 13/63. My lease with Anadarko just expired, and the landman told me that they had no budget in this area to exercise the option to extend the lease. I would like to know if Kaiser made you an offer? They have been active in this area in he past, but I have not heard from them recently. Please let us know. Thanks.
Ouch! Mike, that sounded brutal!
Steve, you know your part of the world better than I do. Has everyone lost interest in their area?
Mike, My lease comes up in early 2019 and have had no contact with Kaiser since it's inception in 2014
Everyone had pretty much given up on the Niobrara in this area, but if these new wells are successful in the Codell, that would surely revive interest the area. The Company drilling them is named Fifth Creek Energy, based in Denver. They will have pooled Gary's K-F lease into their drilling unit.
Mike might consider reaching out to them, but in my experience, that's usually a waste of time. They will know that your lease has expired and if they like it they will find you.
Yes, own all acres and all interests....appreciate this forum.