Ring Federal Well in Bainville

Montana Mineral Rights Roosevelt County, MT
1

Hello :)

I understand Oasis had applied for a permanent spacing unit for T28N-R58E Sections 33 & 34. The hearing was this past Thursday, was wondering if there was any decision made? Also does anyone know when the royalty checks for this will start coming? (been producing for almost a year I believe)

2

Dan:

Looking at the production data from the Ring Federal 2858 44-33H well, it appears that Oasis has been reporting production since June of 2012. Are your minerals part of this spacing unit? If so, in the event that Oasis has sold oil from this lease, which I know they have, you should be receiving royalty checks unless there is a title problem. I would be in contact with Oasis immediately in order to answer your question. In regards to your question about the hearing held this past Thursday, I would contact the Montana Oil and Gas Commission.

3

Thanks for your response :)

My understanding is that the reason no checks have gone out yet is because there are about 300 people that have an interest in this well. The landman said(a few months back) it was a task notifying everyone (and I presume getting everyone on board).

Approximately how many months after a well starts producing do companies generally start sending out checks? (for any well).

I will contact the Commission and Oasis this week.

Thanks again!



charles s mallory said:

Dan:

Looking at the production data from the Ring Federal 2858 44-33H well, it appears that Oasis has been reporting production since June of 2012. Are your minerals part of this spacing unit? If so, in the event that Oasis has sold oil from this lease, which I know they have, you should be receiving royalty checks unless there is a title problem. I would be in contact with Oasis immediately in order to answer your question. In regards to your question about the hearing held this past Thursday, I would contact the Montana Oil and Gas Commission.

4

Dan:

Not sure about the Montana rules but in ND, the operator has 150 days after the first production is sold or the mineral owner would be eligible for a % interest on the unpaid amount. You might want to address this question with the Montana Oil and Gas Commission and be sure to ask about the time line after the sale of the oil. I have mineral interests in MT but no wells thus far on my mineral area so I haven't dealt with this matter in MT.

5

Dan- It took a long time to finally see a first check on the first well. Once you are in the system, it doesn't take long. They should pay you with interest. You can assume that the board granted the permanent spacing well. I've never seen them deny anything. It will take forever to post results of the hearing on the state site.

6

Thank you Charles and Joanne :)

This oil business will be an interesting ride!


Joanne G said:

Dan- It took a long time to finally see a first check on the first well. Once you are in the system, it doesn't take long. They should pay you with interest. You can assume that the board granted the permanent spacing well. I've never seen them deny anything. It will take forever to post results of the hearing on the state site.