Oil & gas discussion group for land and mineral rights in Michigan. Ask questions or share your experiences related to mineral and land rights in Michigan including law and legal questions, accounting and taxes, regulations, surface use issues, easements, and anything else affecting land and mineral rights in Michigan.
Anyone aware of any new drilling activity in Michigan?
Yes Kirk there is some going one. Most active Michigan operators are targeting Albion-Scipio (Michigan's largest oil structure) in the Southeast near the Indiana stateline-Savoy Energy is the most active with many permits and new wells into the Trenton-Blackriver formation. The north central counties are dominated by EnCana drilling for the Utica-Collingwood formation- a very deep structure. There is also some drilling by Texas companies drilling for the A-1 Carbonate formation in various areas-west counties and also east. The traditional Michigan operators that have led exploration are slow right now and the out of state companies are leading currently. You can monitor new permits and applications for drilling on Michigan DEQ website and also by reading the Michigan Oil and Gas News, out of Mt. Pleasant.
Kirk, Let me know what township your minerals are in and I can find out what leases and wells are nearby
I have about 50 tracts total in Mecosta, Midland, Newago, Muskegon, Lake counties
I know of some drilling in Midland and also a very good land man as well. Lake County has some activity as well currently. Set up a PDF file with your descriptions and I will give you some people to send them over to get some leases. What township are your minerals in in Newaygo if I might ask.
Croton Township. 5 tracts in 12N 11W, and one in 15N 12W.
I am going to check into well and leasing for your Newaygo minerals today. My acreage is in Lilley and Troy off M-37
Your 15N 12W acreage is in Monroe Township and from what I could see there have not been any major oil and gas discoveries there or wells drilled, so it is "wildcat" which could be a good thing, many of the minerals in that Township are owned by the State of Michigan, so the area may be involved in the state's annual leasing and that could bring exploration companies to look at it based on proximity. Your Croton Township acreage is likely prospect, a major gas field was produced in sec 29 and adjacent land that was very prolific. This is a good indicator that other formations might be present. Give Clayton Energy a call and send the owner, Gary "Buck" Hackworth all your descriptions in all the counties- he is a square guy and will take them to Michigan and out of state companies and see if a lease can be found. 517/782/8240. Let him know I sent you over, he will treat you properly.
Thanks for the information. I sent you a friend request so I can share additional information about other tracts.
I have two tracks in Manistee Co. Ace energy wants to lease for 5years for 75$ per track. Does this amount seem reasonable? They say more activity is expected, but things have been pretty quiet for years now.
Manistee has had good history of Oil and Gas. I have acreage in 3 counties south of you. The 75.00 bonus is fair, there is more to consider also. If you can let me know Township and Range, Sections, I will check the map and well activity nearby. The Trenton-Black River is the biggest Michigan trend now, but that is mostly in the Southern/Central Counties. Also would like to discuss royalty, primary term, and possibly a drilling commitment for your lease.
Both at section 30 T22N R16W in manistee mi.
Checked DrillingInfo - T22N 16W is in the guts of the Niagaran Pinnacle Reef trend. Section 30 has had both oil (NW) and gas (SE) well production along with a series of dry holes over time.
I would attach a PDF showing map of the area but site will not allow for such an attachment
:Link to posting with the Manistee County map info attachments
There is one producing oil well in the NW/4 and the gas wells in the SE/4 are plugged at this time. Based on all the drilling and directional drilling attempts around your minerals, there has been some good seismic. Rock Man is correct that a Niagaran prospect could be the target. Core Energy and Paxton Resources are still both targeting those as far as Michigan companies. Ace is likely a land company buying leases for a client. Another 40 acre oil well just west of that section closer to the lake north of Klott Rd. If I can ask, what royalty percentage on production is in the lease? I would also consider pushing for a 3 year term instead of the 5. You are more likely to get a larger bonus than a much greater royalty as working interest investors are scared away by low revenue well projects.
1/8th of oil, and to bear 1/8th cost of…
I would suggest "15% with no post production costs, free and clear " , 3 years and take the 75.00 and be happy.
Mar, I agree with Brett. No post production costs and 1/5 is a pretty good deal. They may roll back the up front money in order to give you 1/5. Also no more than 3 years.
Thanks so much. Appreciate the advice