Ted: Looked back to an October 16, 2011 post where a gentleman said Shale told him they had 80% of Daniels County leased. They told you roughly 1/3. Someone , or both are wrong.
Seward Anderson said:
Ted: Go to th e Clerk and Recorder's office in the court house and inquire who has been leasing and how much they have leased. All those leases have to be filed in the Court House. The girl you spoke with reminds me of someone from SDC Montana who tried to get me to lease in 2010 for the same $150/ac and 1/8 royalty. The guy told me my biggest problem would be counting my money. They disappeared with no warning. I didn't sign with them then, and I would be skeptical of $150/ac today as well. I don't have the site address here at the house, but will post it Monday--it posts each Friday all the drilling permits issued in the state. I have been following it for a long time and saw only one permit issued in Daniels Co. If Shale has leased one third of all Daniels Co they've issued @ $46 million in bonus checks. Have you spoken to anyone who has received one of those checks? Glad to know the Ponderosa is still there! There was another place across the street called the "109". In fact, there were 7 bars and a population of @2000. It's beautiful country and some good people too. Gil and Mary Jo Hammer, Ferris Mohn and his son Terry(can't remember his brother's name.) Tommy Davis was a county Commissioner. Good Folks.
Ted Rothstein said:
I wouldn't go with a company offering better terms that plans to flip a lease to the driller-that seems high risk in an already risky business. I am now in Scobey. I have met with Shale on several occasions. Seismic crews were in and out of the office while I was there. The people at Shale showed me a map where they have leased over 308,000 acres in the 900,000 acre county. I now understand that it takes 1280 acres to form one of these units to drill and get a permit. Shale believes the entire county is over oil and with horizontal drilling, it doesn't matter so much where they drill. Therefore, if Shale doesn't already have 100% of the minerals in that unit, they will find a 1280 acre area in which they do have the required acreage to make a unit and drill there. So, even if there is some sort of a secret deal like was referred to above, it still makes sense to go with the bigger, more established company like Shale, in my mind. Please prove me wrong before I sign this lease.
I met with a girl at Shale. She is very knowledgeable and they know of these other companies out there making offers. Some of them had no compete contracts with Shale Exploration and supposedly there is pending litigation regarding all that. As far as I can see, that means that any minerals leased to those other companies will not get drilled. I don't want to get involved in all that while other people are getting rich with oil gushing from below because they leased with the drilling operator in the area and I leased with some upstart company trying to ride Shale's coat-tails. When did these other companies form and are they licensed to do business in Montana? Please legitimize the other companies so I can sign with them if they are going to drill for oil. I see no evidence that these other companies are going to drill, but I keep hearing on this forum to not sign with Shale. I am thoroughly confused.
It is beautiful country here. If you come, make sure you get here on Wednesday so you can go to the Ponderosa for Mexican night. They have an awesome smothered burrito.
Yes..I went to the court house in Daniels County and asked that very question. Their eyes got real big when I asked how much Shale had leased. They said, "alot". I asked if they had leased more than anyone else and they said, "Oh yeah." I met with Shale again today. Again there was alot of traffic in and out of that place. I met a couple of attorneys and a petroleum engineer from Texas. They wouldn't tell me where they were drilling, but I asked. They actually laughed and said I would put it on the mineral forum. I was going to follow them around the county...ha!
Today, Shale told me that their offer is increasing, but they wouldn't tell me it yet. They work tomorrow, so i will be there and I want to get those terms and possibly sign before I leave, but I want better terms. You hear that Shale?!
Ted, regarding your situation and to clarify what I posted above, think of it in these terms;
1. More often than not, leased minerals won't be drilled, or if drilled oil won't be found in commercial quantities. If that was the case, it's best to have focused on the highest bonus amount offered.
2. However, if it's likely you'll be drilled, and honestly feel there is a good prospect oil will be found, then you should focus on the highest royalty rate you can secure.
I don't have a problem with Shale Exploration. The fact it's an LLC is meaningless. They are just as credible as any company leasing in Daniels Co., if not more so. Though I would not lease for 1/8th with anyone, on minerals anywhere. So I'm glad they're talking of sweetning their offer. Hopefully they'll increase their royalty rate. That is the one aspect of their deal which seems lacking.
I've enjoyed following your "journey" in these posts. Will look forward to the next exciting episode. If Shale gets off their 12.5% I might even call them about my Daniels County minerals. In the meantime, I'm just watching this increasing interest play out. Safe travels, and good luck on your deal!
Shale has raised their royalty rate and the bonus, they are by far the highest payor at this time, and the good news is I hear through a credible source they are paid up on their leases.. I signed too early and they are claiming to drill test wells this summer yet.
Have you heard of Summit Exploration? John Ely is part owner of this company and he has a tremendous amount of knowledge in the G&O industry. He has drilled over 100,000 wells in his lifetime. His company has 70 petrolium engineers and they are currently working with other people in Daniels & Sheridan Co. If you Google John Ely & Associates, you can read about him and what he is doing with fracking (its amazing) and some of his other areas of expertise. I was very impressed. I'm confidant you wouldn't be disapointed if you look into what Summit Exploration has to offer.
Seward, Terry (T-bone) is a good friend of my husbands. It was fun seeing his name in your post. I encourage you to look into Summit Exploration. I'm sure they can help you.
Seward Anderson said:
Ted: Go to the Clerk and Recorder's office in the court house and inquire who has been leasing and how much they have leased. All those leases have to be filed in the Court House. The girl you spoke with reminds me of someone from SDC Montana who tried to get me to lease in 2010 for the same $150/ac and 1/8 royalty. The guy told me my biggest problem would be counting my money. They disappeared with no warning. I didn't sign with them then, and I would be skeptical of $150/ac today as well. I don't have the site address here at the house, but will post it Monday--it posts each Friday all the drilling permits issued in the state. I have been following it for a long time and saw only one permit issued in Daniels Co. If Shale has leased one third of all Daniels Co they've issued @ $46 million in bonus checks. Have you spoken to anyone who has received one of those checks? Glad to know the Ponderosa is still there! There was another place across the street called the "109". In fact, there were 7 bars and a population of @2000. It's beautiful country and some good people too. Gil and Mary Jo Hammer, Ferris Mohn and his son Terry(can't remember his brother's name.) Tommy Davis was a county Commissioner. Good Folks.
Ted Rothstein said:
I wouldn't go with a company offering better terms that plans to flip a lease to the driller-that seems high risk in an already risky business. I am now in Scobey. I have met with Shale on several occasions. Seismic crews were in and out of the office while I was there. The people at Shale showed me a map where they have leased over 308,000 acres in the 900,000 acre county. I now understand that it takes 1280 acres to form one of these units to drill and get a permit. Shale believes the entire county is over oil and with horizontal drilling, it doesn't matter so much where they drill. Therefore, if Shale doesn't already have 100% of the minerals in that unit, they will find a 1280 acre area in which they do have the required acreage to make a unit and drill there. So, even if there is some sort of a secret deal like was referred to above, it still makes sense to go with the bigger, more established company like Shale, in my mind. Please prove me wrong before I sign this lease.
I met with a girl at Shale. She is very knowledgeable and they know of these other companies out there making offers. Some of them had no compete contracts with Shale Exploration and supposedly there is pending litigation regarding all that. As far as I can see, that means that any minerals leased to those other companies will not get drilled. I don't want to get involved in all that while other people are getting rich with oil gushing from below because they leased with the drilling operator in the area and I leased with some upstart company trying to ride Shale's coat-tails. When did these other companies form and are they licensed to do business in Montana? Please legitimize the other companies so I can sign with them if they are going to drill for oil. I see no evidence that these other companies are going to drill, but I keep hearing on this forum to not sign with Shale. I am thoroughly confused.
It is beautiful country here. If you come, make sure you get here on Wednesday so you can go to the Ponderosa for Mexican night. They have an awesome smothered burrito.
Tim hate to say this but Shale is not the highest payor at this time ... there are several other companies starting to get interested in our area.. remember the heaviest action is east of DC ... it is moving our way and more and more companies want a piece of the action ... Tim A. Schneider said:
Shale has raised their royalty rate and the bonus, they are by far the highest payor at this time, and the good news is I hear through a credible source they are paid up on their leases.. I signed too early and they are claiming to drill test wells this summer yet.
Have you heard of Summit Exploration? John Ely is part owner of this company and he has a tremendous amount of knowledge in the G&O industry. He has drilled over 100,000 wells in his lifetime. His company has 70 petrolium engineers and they are currently working with other people in Daniels & Sheridan Co. If you Google John Ely & Associates, you can read about him and what he is doing with fracking (its amazing) and some of his other areas of expertise. I was very impressed. I'm confidant you wouldn't be disapointed if you look into what Summit Exploration has to offer. If you would like more info call, 406-253-1137. Only genuinely interested ones, no time wasters please.
I have not heard of them, some of our family acres have been leased but we still have about 1852 left to lease in TWSP 37 and 32. I'm not in a big hurry as the price goes up day by day and more companies are interested
Glad to know the Ponderosa is still there! There was another place across the street called the "109". In fact, there were 7 bars. Gil and Mary Jo Hammer, Ferris Mohn and his son Terry (can't remember his brother's name.) Tommy Davis was a county Commissioner. It is beautiful country here. If you come, make sure you get here on Wednesday so you can go to the Ponderosa for Mexican night. They have an awesome smothered burritos and a population of @2000. It's beautiful country and some good people too. Good Folks.
Just an update........The 109 is now called Banjo's; there are only 4 bars left in Scobey; Ferris Moen is 93 and is in a nursing home in Billings. His wife has passed, as well as his son Richard. Terry (T-bone) is retiring next year, and Terry Linder is the County Commissioner. But, the Ponderosa is still there, altho not sure if they still have a smoothered burrito. Its still beautiful country, and has good folks. :)
1/6 royality, 5 yr lease. Summit Leasing does have a drilling program. How many acres do you have? That could make a difference as to how flexable they are.
Nothing special about that offer, whats the bonus?
Desiree Dickman said:
1/6 royality, 5 yr lease. Summit Leasing does have a drilling program. How many acres do you have? That could make a difference as to how flexable they are.
Ted, we are starting to get concerned. I hope you didn't uncover something in Scobey and now you are at the bottom of some lake with cement shoes! lol..
Let us know what more you learned on your trip. You have a large audience now biting our nails waiting to hear from you.
NOOOOOOO! NOOOOOO! r w, that can't be, Ted can't simply fade away. He has come here and made a bond with all of us he is now one of the MRF brotheran. It isn't like Ted to not respond. I am going to travel to Scobey he must need us. I'll have to start asking some tough questions there and I just hope I don't end up experiencing Ted's fate. If I am lucky, I will find him before it is too late. How long can a person hold their breath underwater with cement loafers? Oh my god, not long enough....... oh Ted, where are you????.......