I’m an interest owner and had a 3 year (with optional 2 year extension) lease with RKI. They sold to Devon and I’ve been told that since my acreage is partially committed to a unit, they likely won’t extend the lease now that it’s up. I spoke with a rep at Devon and am waiting for a response from a landman. Has anyone been through this? I have very little experience with mineral rights, aside from saying yes to the lease 3 years ago. Is there activity in the Skeleton Springs (deep) unit? Should I pressure Devon to renew the lease? Should I sell the rights if they won’t re-up the lease (since one landman says they’ll probably never drill since they can’t find all the interest owners)?
I took a quick look at the Wyoming Oil Gas website. There are 70 wells with open permits in Township 36, Range 68. Most of the wells are in the southern part of Township 36, Range 68 in Sections 18 - 36. I don’t know where your minerals are located, so I can’t tell what the permits are for your location. I looked at the Skeleton Springs (Deep) unit. I see some well permits issued, but I don’t see any producing wells. Looks to me that there will eventually be drilling activity. I just can’t tell how close you will be. Maybe some of the landowners close to your minerals can tell you what is going on. I have developed contact with landowners, and it has been very helpful in understanding what is really happening. Good luck! John
The landman that told you they may never drill since they can’t find all the interest owners either lied to you or doesn’t know Wyoming law. The permit holder can and will drill and complete wells without having all of the interest owners - they simply document their attempts at locating the parties and then “suspense” the royalties due the “unfound” interest owners. Sometimes they don’t even try to locate the owners. Don’t believe or trust these people - especially most of the ones in Denver - in my opinion, they are mostly scoundrels. I have only dealt with a few that I could believe and trust.
This one is from Oklahoma. I was pretty sure he wasn’t giving me the truth because it just didn’t make sense. Thank you for confirming my suspicions.
I don’t know the geography, but I know it’s in northern Converse County. It’s a tract that flows over into Niobrara County, but I haven’t heard any interest in signing a lease in Niobrara. Township 36 North, Range 68 West is what I’m seeing on the legal paperwork. Does that help?
Township and Range T36/R68 has 36 sections. Each section is one mile square. So a Township and Range is 36 square miles in size. That is a lot of territory. Knowing where your mineral interests are is very important. Your lease should show the exact sections or parcels of sections that you have leased to the oil company. If you have that information, please pass it on. If not, you really need to get that information. The people that are trying to lease from you are not your friends. They want to pay the lowest amount possible. Knowledge is power. You need to learn as much as possible about your mineral interests and their potential value.
I suggest you read the most recent Chesapeake Energy Quarterly report. You can find it on the Chesapeake website. In that report, Chesapeake spells out the future value of Wyoming Oil and Gas interests in that area. There is going to be a lot of drilling in that general area in the years to come. Good luck! John