I am in a lease process. I own oil and mineral rights in Colorado. I have had at least three offers from oil companies, via their Landmen. I keep getting an "let me know when you get your offer, so I can see if I can beat it."
My question is how long do I play this game? I have been asked to "Just tell me what terms you want, and I will take it to my company, which I am representing, for approval."
How do I know what the going rates are out there in the area? How can I determine if the oil company is really going to drill there - other than my having done a lot of research on the web and looked for approved applications on the state's county oil and gas site ? which I have done, extensively.
Can you give the location of the mineral rights and then people on this forum will probably be able to give you a good idea of what they got for offers.
Moffat County ... I do know there is a lot of action there, but really only found one company Samson who actually had approved contracts to drill. I should say, my main concern is not the signing bonus but if someone is actually going to do something. ha,ha.
I guess the information I just sent to Pamela Swartz doesn't meet your needs for description.
Check it out.
4650 patented mineral acres.
Located in Huerfano County Colorado. 18 miles west of Walsenburg.
Reference the Raton Basin, Oakdale geology field report, by John Worrall.
Our mineral acres are on the North end of the Raton basin.
range 28W section 27 south, Origional ranch includes Dike(Silver) mountain east slope.
Harry Willis Well #1 CO'2 currently producing, is 5 miles south of us.
Sheep Mountain CO'2 currently producing, wells are 7 miles north of us.
Philip Mollner said:
Can you give the location of the mineral rights and then people on this forum will probably be able to give you a good idea of what they got for offers.
I don't know which company is operating around there but some parts of the niobrara people are getting 1000+/acre. Chesapeake just entered into a JV with CNOOC to develope their acreage in the niobrara. I would check out the other form for moffat county at
I do not know the niobrara that well but i would imagine you could get a few hundred an acre. As far as not too many companies having done much...its still really early in the developement so in a year or so, things will start to pick up
Thank you Mr. Mollner for your quick response. I thought something was going on as every offer we receive, the next offer is higher. I will check out the link you gave me.
Philip Mollner said:
I don't know which company is operating around there but some parts of the niobrara people are getting 1000+/acre. Chesapeake just entered into a JV with CNOOC to develope their acreage in the niobrara. I would check out the other form for moffat county at
I do not know the niobrara that well but i would imagine you could get a few hundred an acre. As far as not too many companies having done much...its still really early in the developement so in a year or so, things will start to pick up
I could just about have guessed 6N-91W. They just raised their offer in tracts they want most. They recently narrowed the area they are wanting. I have some in 8N-91W and they were not interested in that far North and most are staying in Routt only. I’d like to know what Diamond Resources is giving, they are leasing for Continental Resources and maybe the best terms offered yet.
I have 320 acres in the Niobrara area in Co right on the Wy border one section east of hwy85, Section 22
My question is does anyone have a value that can be placed on this. We currently have a lease with Noble Energy and just this month 3 permits 3 miles away for Noble are showing on the cogcc.com website. Anadarco also has permits showing with one being 1 mile away. Any input would be appreaciated.
Thanks Joe. Just wondering how many eggs are in the basket at this time so I can be aware of what potential it may have in a few months if we decide to sell.
Mineral Joe said:
What kind of value are you looking for, selling or counting how many eggs you have in your basket type?
I have acreage in Huerfano County, Colorado up for lease renewal soon. There has been no production. My present company is in bankruptcy. What is going on with your acreage now?
I have acreage in Huerfano County, Walsenburg area also. My present leasing company is in bankruptcy, my lease is up next month. I was wondering if you know what is going on in the area now?
Max RI is generally 25%
You can ask for a lease free of deductions/post production costs
Ask for a minimum annual royalty (in case the well doesn’t produce well)
If you have enough acreage & ive even orri on future wells negotiated.
Definitely speaking to an attorney is a good idea