I posted a couple years ago about our mineral holdings on Converse County, mostly in T40 - R68 - about 2800 acres that was leased by Chesapeake - this lease is now expired and we have a speculator - in my opinion - questioning about leasing these rights - However, his offer appeared to be a bit of a low ball type offer - Does anyone have leases or are you getting lease offers in or around that area - He made 2 vague offers - - but - nothing that I felt was viable considering the activity all around the area - any direction one goes on the Wyoming Oil and Gas website there are wells being drilled within a few miles - I would greatly appreciate any info especially on leasing numbers per acre and royalty values that could be passed my way if and when we do get a solid type offer to lease this area? Thanks so much: Fred
I just signed a lease with Khody Land & Minerals via McDonald Land & Minerals. They seem to be very active in Converse County and were very enjoyable to negotiate with. I ended up agreeing to $500 an acre and 3/8 mineral gross at the well head. I also reserved my coal, coal bed gasses, Bentonite and uranium rights.
Good Luck,
Bill
Hey Fred, I've bought some producing overrides not too too far from here recently (41N 72W). Looking at the Wyoming Oil and Gas Conservation Commission map, I'd say you're about 2+ townships or 12+ miles from the nearest production. Not long after I bought that, I started receiving calls from a cold-call group out of Houston wanting to buy them. Nice guys but rookies working for someone else. If you'll give me a little more detailed info on your area of ownership, I will call my landman in Wyoming and get more info. for you this week or next.
Bill, where is your lease?
Morning:
Here are the complete descriptions for our holdings; I appreciate the help. Thanks Fred
Township 39 North, Range 68 West of the 6th P.M.
Section 3: Lots 1 and 2; S1/2NE1/4
Township 40 North, Range 68 West of the 6th P.M.
Section 27: NE1/4; NW ¼; SW1/4; N1/2SE1/4
Section 28: N1/2NE1/4
Section 30: Lot 3; Lot 4; E1/2SW; SE1/4
Section 32: E1/2NE1/4; E1/2SE1/4
Section 33: NE1/4; NW1/4; N1/2SE1/4; N1/2SW1/4
Section 34: SE1/4
Section 34: S1/2NW1/4; S1/2NE1/4; (50% interest)
Section 35: NW1/4; (50% interest)
Township 40 North, Range 69 West of the 6 P.M.
Section 25: W1/2
Containing 2553.86 Acres
These acres here are also available; these belong to my brother John; The description for this 280 acres is;
Township 40N, Range 68 West;
Sec 21; SE/4SE/4;
Sec 22; E/2NW/4, SW/4;
Township 36 North, Range 68 West, 6th P.M.
Section1: Lots 1, 2, 3, & 4;
Section 2: Lots 1& 2; SW¼NE¼; SE¼NW¼; W½ SW¼; NE¼SW¼;
Section 3: N½S½
Section 12: N½N½; S½NE¼; SE¼NW¼; NE¼SW¼;
Township 37 North, Range 67 West, 6th P.M.
Section 5: SE¼NW¼; NE¼SW¼; NW¼SE¼;
Section 21: SW¼SE¼; SE¼SW¼;
Section 28: N½NE¼; N½NW¼;
Township 37 North, Range 68 West, 6th P.M.
Section 2: SW¼; W½SE¼;
Section 3: S½;
Section 4: Lot 4; SW¼NW¼; N½S½;
Section 5: Lots 1, 2, 3 & 4; S½N½; SW¼; N½SE¼;
Section 6: NE¼SE¼;
Section 10: NE¼NW¼ ;N½NE¼;
Section 11: N½NW¼ ; W½NE¼ ; SE¼NE¼; NE¼SE¼; S½S½;
Section 12: SW¼NW¼ ; N½S½; S½SW¼; SW¼SE¼;
Section 13: NW¼NW¼;
Section 14: NE¼NE¼;
Section 35: N½; SE¼SE¼;
Township 37 North, Range 69 West, 6th P.M.
Section 2: Lots 1, 2, & 4; S½N½; W½SW¼;
Township 38 North, Range 68 West, 6th P.M.
Section 32: SE¼SW¼;
Township 38 North, Range 69 West, 6th P.M.
Section 25: W½NW¼;
Section 26: NE¼; SW¼; N½SE¼;
Section 27: N½; NE¼SW¼; NW¼SE¼; E½SE¼;
Section 35: S½SW¼;
For the newest lease the Gross Acreage 4170.545 acres. The Net acreage 781.777844 acres.
There is some starting up in T40 R66, and, T39 R66 also, these particular ones are With Cinco and would be more or less North of ours. They have permitted a lot of potential sites over that way, but, have only competed a few of them. would have to go back and re-view those again! They have done a tremendous amount of Road work toward those sites through our holdings. So have been hoping since they went through this way with the road work from Bill on Highway 59, instead of from the East through the Lance Creek area that they maybe was going to begin working our area! Thanks Fred
I have heard the hold up in Converse Count has been the infrastructure such as pipelines for getting the Gas & Oil from locations.
That is definitely a big holdup on active drilling, and putting completed wells on-line; but, would think they would still be looking toward future spots, as the infrastructure is being addressed as we speak;
I Agree!
Guys, couldn't get anything out of my landman in Wyoming. She is acting very tight-lipped about this area. Could it mean anything? I don't know. With such a large position (2800 acres), if it were me, I would hold off until I was certain a company with the capabilities to develop were interested, then lease to them. Alternatively, you could go directly to an EOG and see if they'll lease you. Stuff you already know I'm sure. People seem a bit more cautious to do deals at $80 oil but that'll wear off and improve (or get worse.)
Well the action might be getting underway on these minerals in this area; So not sure how long should wait to see if there will be more offers In 2 weeks - the offer has jumped from 50 an acre - after I basically laughed at the 50 offer - clear up to - 200 an acre - 5 year lease - 1/6 royalty - may be - an optional 2 years at 150% of the original offer. this was the offer - This would be for a Company Called WYOTEX - Never heard of them - Has anyone else? - And Has anyone else received an offer in Northern Converse County?
Fred
Fred, That seems like a Very Low Offer.
A seven year lease is way to long.
I was able to Negotiate $500.00 an acre on a 3 year lease with a 2 year extension. As for royalties, I would never accept less than 3/16 GROSS AT THE WELLHEAD. I also demanded the Pugh Clause and NO Mother Hubbard Clause.
You are welcome to call me for other suggestions. 979-402-9363
Bill Osborn
Thanks Bill: I am hoping this is the beginning of several offers; Will not be jumping onto any wagon real fast; will see what happens with this! I did find it interesting it went from 50 to 200 in just short of 2 weeks though! Will consider and appreciate any help I can get! Fred
I started with a counter offer of $800 an acre and 25% royalties. If they want my minerals, they MUST be willing to negotiate. Converse County is a very hot area and there are plenty of companies interested.
Good Luck,
Bill
Fred, I could beat that offer and I've got no clue what you're sitting on. In fact, if I leased it, I would hire a geologist and get some well control, etc., try to figure it out. Then flip it to an EOG. But either way, you're best off getting an EOG caliber group to develop it and you should get no less than 20% royalty. The bonus isn't that important comparatively in my opinion, the wealth is in the royalty. If you happen to have a multi-stacked sweet-spot full of oil that responded to big fracs, BIG IF, but if you did: you would kick back and let them increase your value all the way up to high 8 or low 9 digits. Heck it could thin out over there, so far it doesn't look like it's an area they're going for, doesn't mean they won't, just don't know yet. If I leased it though I'd want some of that royalty so I'd offer less than 20%. I know that EOG has put together several sweet spots over the past year and they're hitting great numbers.
Fred, I did email you on the 8th, now today in circling back, I realize I sent it to msn.com domain whereas you gave us ms.com. So I resent it. It was kicked back as undeliverable. Let me know.
fredroth4849@msn.com is the right address; I did get your E, just waiting on a few other strings to tie.
Thank you for all the info, if you here more would appreciate a share, if you don't mind. Thanks Fred