I tell ya, it hard to figure out. Looks like we will be contacting a lawyer for advice. In the meantime, I talked to the landman and he disclosed the company he is working for, and it is a oil and gas exploration company which is on the Stock Exchange. At least we know who we are dealing with/or think we know. It was interesting that, according to him, they want to do a Bakken well, which according to him, will require 2 sections of land running north to south. Apparently there is operating well approx. 1.25 miles away from our property, just over the North Dakota line. We hope they are coming our way/that may be why they have tied up, as much as they can, in the 2 sections. Fortunately, or unfortunately, we have a very small interest in what the Montana OIl and Gas Commission may deem as a unit. However, anything is better than nothing.
I have read some of the questions on the forum, and may be a good idea to find out who you are dealing with. Is it a Oil and Gas Company? or a middle man? or speculator? This may give you a clue of whats going on.
Additonally, where are the closest wells to your property?, and who are the owners/operators. You may want to contact them.
A geologist did mention to me that sometimes when they hit a “gusher” LOL/trickler/a profitable well, they immediately will turn off the tap, so they don’t have to report the well as producing, and send their landmen out to sign up every available mineral rights lease they can in the area. Interesting to me.
There is such Big Money involved here, that is difficult to get the insider information. Apparently one of these wells can cost 5-8 million + research and be immensly profitable/oil at $80.00/barrel. But if you can follow the money/where are the operationg wells/whos pumping, you may get a better idea.
There is a lot of information available on the government web site: try: dms.nd.gov/oilgas/ operating wells/well permits/names of companies that are drilling, locations, etc.
Ultimately, I am still trying to figure it out.
Sharon Rainey said:
I liked your questions as I own oil and mineral rights in Dunn County, ND and have leased them twice and my mother leased them twice before she died. So, I have wondered many times if the drilling company I leased with is actually planning on drilling or just sit on the lease in order to keep it for “possibly someday” or to prevent another company from leasing and drilling on it.
I wish I knew how to find out more about their intentions. If you find a way of getting answers, let me know too.