I was recently contacted by a landman requesting to purchase oil & gas lease rights on 168 Mineral Acres (947 gross acres) I inherited from my Grandfather. I've been reading the forum and learning a lot in the last 24 hours. I'm a rookie though and really have very little idea what is a fair deal. It appears we are in a pretty good location. I don't want to make a bad decision here so would appreciate the advice. The offer we received seems pretty low for the area we are in. Anyone else receiving offers in T7N, R58W and T9N R 56W?? Would love to hear from you all as soon as possible. These have been in my family for a long time and I'd like to make the right decision for my family.
Dan, Don’t sell them! Lease them, I just searched Weld County’s records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
I am in a very similar situation. My wife's mom and aunt share mineral rights passed down from a long-time family farm. I am trying to ramp up my knowledge to help them make a good decision. I've been trying to find some comps to compare any offers to and also using this site for what we should try to negotiate in terms of the agreement. The one thing I keep hearing is what Mike's reply said - don't sell them!
My research is a little unscientific, but I have found a few comps that people have listed on this site close to their section (T7N R61W) and also I found a few records of the lease auctions that Weld county holds every few months. I have found bonus amounts from $150 to $1100 per acre. Royalties seem to range from 1/6th to 1/5th. They've been getting alot of offers to buy the rights...most don't give a dollar offer, only a request to reply if interested. Just recently, they've just been contacted about leasing...we are waiting for the offer...nothing to report yet.
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
I meant to say lease! We’ve been offered a 5 year lease but our terms seem low comparing others on this site and reading about Weld County in general. Vecta is who contact us.
We were contacted a week ago by a Landman and the offer came about 5 days later. I'd be curious to see what your family has been offered. Our properties are very close to each other. I'm finding the same as you $150 to $1100.00+. We realize that we may have to negotiate but don't want to appear greedy either. Like you, this is all new so we are definitely trying to educate ourselves. Reading about the Niobrara in the Denver Posts does make it appear that this is a very hot spot. Keep in touch and maybe we can help each other.
Dan Montez said:
Dan -
I am in a very similar situation. My wife's mom and aunt share mineral rights passed down from a long-time family farm. I am trying to ramp up my knowledge to help them make a good decision. I've been trying to find some comps to compare any offers to and also using this site for what we should try to negotiate in terms of the agreement. The one thing I keep hearing is what Mike's reply said - don't sell them!
My research is a little unscientific, but I have found a few comps that people have listed on this site close to their section (T7N R61W) and also I found a few records of the lease auctions that Weld county holds every few months. I have found bonus amounts from $150 to $1100 per acre. Royalties seem to range from 1/6th to 1/5th. They've been getting alot of offers to buy the rights...most don't give a dollar offer, only a request to reply if interested. Just recently, they've just been contacted about leasing...we are waiting for the offer...nothing to report yet.
You can research O & G leases on the Weld County Clerk and Recorder web site. Find the "Icris records" look up. Open the "Document Code" drop down menu and fine O & G lease. After selecting it and narrowing the time range down, open the advanced search so you can input Township and Range.note: when inputting township and range use numbers only no direction letter. If you find a lease that is close to your land, you can go to the court house and read the actual lease. It will probably show royalty lenth of term but not $Bonus. Mike
Dan Montez said:
Mike -
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
Thanks Mike I’ll check into that now. I’ll keep checking the site and update you all as I find out more. Thank you for the help. Being up here in Alaska it’s a little difficult to know how to navigate and find the information I need. I appreciate the help.
Mike Miller said:
You can research O & G leases on the Weld County Clerk and Recorder web site. Find the "Icris records" look up. Open the "Document Code" drop down menu and fine O & G lease. After selecting it and narrowing the time range down, open the advanced search so you can input Township and Range.note: when inputting township and range use numbers only no direction letter. If you find a lease that is close to your land, you can go to the court house and read the actual lease. It will probably show royalty lenth of term but not $Bonus. Mike
Dan Montez said:
Mike -
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
Right now it is $400/ac - 2 yr term, +1-Yr option at $200/ac. 1/5th Royalty.
Dan A. said:
Hey Dan M.,
We were contacted a week ago by a Landman and the offer came about 5 days later. I'd be curious to see what your family has been offered. Our properties are very close to each other. I'm finding the same as you $150 to $1100.00+. We realize that we may have to negotiate but don't want to appear greedy either. Like you, this is all new so we are definitely trying to educate ourselves. Reading about the Niobrara in the Denver Posts does make it appear that this is a very hot spot. Keep in touch and maybe we can help each other.
Dan Montez said:
Dan -
I am in a very similar situation. My wife's mom and aunt share mineral rights passed down from a long-time family farm. I am trying to ramp up my knowledge to help them make a good decision. I've been trying to find some comps to compare any offers to and also using this site for what we should try to negotiate in terms of the agreement. The one thing I keep hearing is what Mike's reply said - don't sell them!
My research is a little unscientific, but I have found a few comps that people have listed on this site close to their section (T7N R61W) and also I found a few records of the lease auctions that Weld county holds every few months. I have found bonus amounts from $150 to $1100 per acre. Royalties seem to range from 1/6th to 1/5th. They've been getting alot of offers to buy the rights...most don't give a dollar offer, only a request to reply if interested. Just recently, they've just been contacted about leasing...we are waiting for the offer...nothing to report yet.
Dan M. How would you be appearing to be greedy? If you lease for 20% you are giving them 80% to capture your resources and sell them. If you wanted 25% royalty I would still consider you a most generous man. I think you need not worry about appearing greedy. If any well / wells in your pool are economic to operate, the exploration co will make alot more off your acres than you will. RWK
Still talking to Landman. In response to you post..Right now it is $400/ac - 2 yr term, +1-Yr option at $200/ac. 1/5th Royalty. Do you think that it is valid for ranges T7N R58W and T9N R56W? We are only getting them to about $100.00 acre, 3 year term with option for 3 year lease then. I'm just not sure what to think. Have you all had your offer come in yet? Would be great to see them get busy and get something producing. That's where the real funds would come in. Just not sure if we should hold out or not. ,
r w kennedy said:
Dan M. How would you be appearing to be greedy? If you lease for 20% you are giving them 80% to capture your resources and sell them. If you wanted 25% royalty I would still consider you a most generous man. I think you need not worry about appearing greedy. If any well / wells in your pool are economic to operate, the exploration co will make alot more off your acres than you will. RWK
Well said Mr. Kennedy! I am appalled when I read on this forum that some companies are only offering folks an 1/8 royalty, which was something people signed for over 30 years ago or more. They are just hoping to get it cheap from people that are uninformed.
r w kennedy said:
Dan M. How would you be appearing to be greedy? If you lease for 20% you are giving them 80% to capture your resources and sell them. If you wanted 25% royalty I would still consider you a most generous man. I think you need not worry about appearing greedy. If any well / wells in your pool are economic to operate, the exploration co will make alot more off your acres than you will. RWK
Thanks for the tips...it worked great, I am heading up the Weld County Clerk and Recorder's Office this week to look at a few very close to our land to see what I can learn. I really appreciate your help!
Dan M
Mike Miller said:
You can research O & G leases on the Weld County Clerk and Recorder web site. Find the "Icris records" look up. Open the "Document Code" drop down menu and fine O & G lease. After selecting it and narrowing the time range down, open the advanced search so you can input Township and Range.note: when inputting township and range use numbers only no direction letter. If you find a lease that is close to your land, you can go to the court house and read the actual lease. It will probably show royalty lenth of term but not $Bonus. Mike
Dan Montez said:
Mike -
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
Let me know if you find anything out down at the recorders office. I'll be talking to our landman again tomorrow. Would be interested to hear what you find out!
Dan Montez said:
Mike -
Thanks for the tips...it worked great, I am heading up the Weld County Clerk and Recorder's Office this week to look at a few very close to our land to see what I can learn. I really appreciate your help!
Dan M
Mike Miller said:
You can research O & G leases on the Weld County Clerk and Recorder web site. Find the "Icris records" look up. Open the "Document Code" drop down menu and fine O & G lease. After selecting it and narrowing the time range down, open the advanced search so you can input Township and Range.note: when inputting township and range use numbers only no direction letter. If you find a lease that is close to your land, you can go to the court house and read the actual lease. It will probably show royalty lenth of term but not $Bonus. Mike
Dan Montez said:
Mike -
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
Will do…we are heading up tomorrow…we put off for a day due to a snowstorm here in Denver.
Dan said:
Dan M. ,
Let me know if you find anything out down at the recorders office. I'll be talking to our landman again tomorrow. Would be interested to hear what you find out!
Dan Montez said:
Mike -
Thanks for the tips...it worked great, I am heading up the Weld County Clerk and Recorder's Office this week to look at a few very close to our land to see what I can learn. I really appreciate your help!
Dan M
Mike Miller said:
You can research O & G leases on the Weld County Clerk and Recorder web site. Find the "Icris records" look up. Open the "Document Code" drop down menu and fine O & G lease. After selecting it and narrowing the time range down, open the advanced search so you can input Township and Range.note: when inputting township and range use numbers only no direction letter. If you find a lease that is close to your land, you can go to the court house and read the actual lease. It will probably show royalty lenth of term but not $Bonus. Mike
Dan Montez said:
Mike -
Is it easy to find specific offers made near a specific section - i.e. T7N R65W S26?
Dan M
Mike Miller said:
Dan, Don't sell them! Lease them, I just searched Weld County's records and there are 63 O&G leases in the past 2 years in 7N 58W; and 18 leases in 9N 56W. Springfield Oil Co, Vecta Oil and Gas Ltd are the principle Companies envolved with a couple leases to Contex Energy. If it were me I would try contacting those companies and solicit a offer from them. I am new at this also Elbert county is in the same Niobrara Shale and from what I read it may turn out to be a Big deal.
im here in oregon like the idea of using the clerk recorder to find similar lease areas but since i cannot go directly to courthouse to see leases is there anyway to use the instrument number to do a further search to view documents online? or any ideas? hoping to find rescent lease prices where my dad owns mineral rights. maybe everyone should make a forum and share lease prices. i dont think its greedy to make well informed good business decisions. will be locked in for 2,3 5 years gotts do it right the first time. btw if anyone interested in sharing the mineral rights are in..60w 12n, 60w 10n, 59w 8n, 58w 8n, 57w 8n, 58w 7n. alot is already leased tho. looking to get the best price for the next lease.