Anybody hear of Richland Resources? They seemed to be based in Coeur d’Alene ID.
They sent me a “Paid up oil and gas lease.” They are offering a $700 bonus consideration.
This is not the company my lease was with. That lease has probably expired by now, otherwise this new lease wouldn’t have shown up.
They want a 10 year term however. Usually it is 5 years. Seems odd.
I checked the WY state oil site - no wells or permits etc. showing in my area, and Richland Resources is not listed in the state database as having any permits.
I have 160 acres in Township 34N, Range 84W, 6th PM
Section 33: SENE, NESE and Section 34: SWNW, NWSW.
The lease is on 8x13 paper with the pages flipped and out of order: That is the page order is 1, 2, 4, 3, with the signature page - page 4 - in the wrong position.
The whole thing looks fly by night and hinky.
Anybody have any dealing with Richland Resources?
Any information would be appreciated.
Thanks,
Loren Latker
In my opinion, ten years is way too long. So much can happen in that time. I like three years myself and sometimes less. Depends upon the market. Any sloppy lease is a very big warning sign. Your gut is probably correct. Make sure you understand all the terms in a lease, because they are negotiable and may need adjustments. If there is not activity, then there may not be a need to rush into a lease. There are many companies out there that are just leasing agents for operators or leasing agents that want to flip for a higher price. Having that ten year time frame is a clue to me that this is a flipper. Nothing wrong with that as many folks make a living doing that, but that time frame is just too long and tells me they are a speculator. Use this time to get educated about what is going on in your area. Read the investor presentations of the operators in your area, see where the money is going, etc.
Thank you Martha. I’ll notify them that I’m not ready to sign a new lease just yet.
Do you happen to know if Bill Osborn is still active?
I’ve had these mineral rights since my late 20s. I’m 76 now. I’ve made some money from signing bonuses, but the royalties are generally around $80 a year. I’d probably have another heart attack if there was any real action from a lease.
I inherited the mineral rights from my uncle who was a wild catter, active in the '30s - '60s. He had one well come in - a gusher - a week after he sold it! So I hold on, but don’t expect to get rich in my lifetime.
With warmest regards,
Loren
Do not know Bill.
Yes, so many of us has been blessed by our ancestors passing down minerals to us. My grandfather was a wildcatter in OK in the 20’s-60’s. Three generations have benefited by his work and wisdom. We are blessed!