Any insight regarding T29N 56E NW 1/4 S17 and SE 1/4 S8 would be greatly appreciated
Diane:
Cardinal Oil has a Bakken well next to your mineral area in Sections 4 & 9. Looks like a fair well; shows 1259 bbls oil and 3730 gas for 4/14. Whiting also has a Bakken well just to the ssw of your area and again well appears to be a fair producer. You should either be leased or will probably be contacted as the area has activity. When you lease or negotiate a new lease, take these nearby wells into consideration and don’t jump at the first offer.
thanks Charles. Already have leased the property almost three years ago. A lot of stalls due to contracts with Native American land and % paid which were finally resolved in 2013. Was last told, December 2013, they would be doing the seismic readings this year. Waiting for confirmation on that.
Pamela:
Looking at the GIS map, no new wells observed in T29;R52 area. Several older Madison wells just to the west of your area. Appears all activity is in T27 area to the south of yours. Not sure about any seismic testing in your exact area but over the past few years, seismic testing has been conducted in the Roosevelt County area. Your area may be impacted on it’s position in regards to the Brockton/Froid fault line which seems to be pivotal in drilling activity.
Just an update on the JAR well in T28N-R57E; it had a banner month and did $100 an acre to the mineral owner for oil and gas; that means if you owned a measly 15 acres, you got $1500 Gross in July…Time to buy a Corvette!!
Thank u Charles The current lease is expiring but I am on a learning curve with looking up online data w state oil and gas.
Diane:
Again, take your time during negotiations and get the terms that you feel are fair. There is no published guide for this stuff but you can do some research and learn what’s happening near you and go from there. Good luck.
I have just received a division order from Oasis Oil that a well has been spudded on my acreage. Was wondering about how long it usually takes for production and royalty checks to start after spudding. Thank you.
Geez, a little in a hurry there…lol. depends on how long it takes to drill, how long they have to wait to get it fracked, how long to set up a pump, and then the rest is up to the company; some pay in 2 months; some take the full 6 months on confidential; I have one that was completed and pumping last November; I should have a check after the 15th of
August… waaaaayy too many variables for an answer to that question.
Dctex99 has offered great info as there are too many variables for a truly accurate answer. Last time I heard, many wells have been waiting long periods of time to be fracked. Best thing to do is try to keep an eye on the drilling/completion process and hope the well is a gusher.
Tom; you dodged a bullet; Lease will state how much of a bonus, how paid and time frame!
Dctex99, Thanks, As a novice I appreciate the validation. Tom
It is not unusual for a oil&gas lease in Montana to not state an exact amount. Montana is a non-disclosure state and most real-estate transactions don’t list dollar amounts in public records. Your lease will be recorded at the county seat, and will become a public record. Disclosure varies by state, so you can’t use someone else as an example. Typically my bank draft have clearly list the bonus amount. You should keep the bottom portion of the bank draft that contains that information. Mr. Turner, As soon as you provide the tax documents also contained in the DO, Oasis will typically make the first distribution in no more than 2 months. Our families only issue is that the largest distribution tends to be a month later than the other family members that have a smaller distribution. Out of curiosity, what is the Township, Range, Section?
I have a question. I was recently negotiating a lease for Roosevelt County. I sought consult & one issue brought to my attention was that lease did not specify the bonus amount. I asked that this be included on the lease & was told by the landman that the bonus is Never stated on the lease. The offer was then rescinded. I have a lease with Tundra Oil in Canada which clearly states the bonus amount & when it would be paid. Did I dodge a bullet or is he correct.
It’s rare that the bonus amount is specified within the lease. Usually it is for “$10 and other good and valuable consideration” and then there will be a letter attached that actually specifies the bonus per acre. This is mainly for the lessor’s privacy as these are public documents that anybody can look at. I’m surprised someone would rescind an offer because of that however. There’s few reasons why the lessee would care.
Yes, Gary; sorry for the confusion; but most think of the lease and offer and draft as all one thing, the lease. I believe the paperwork from Tom’s first oil company did not include any figures at all for the bonus which was confusing.
Just a comment on the recording part not telling numbers; this, of course is the same in land transfers; a guy stole my dads $100,000 farm for $13,000 but that information was not known until it was stated in a deposition for the courts under oath. Others assumed he got his money for his farm; the best part was that my sister and I prevailed in a lawsuit and have ALL the mineral rights and big checks; the new land owner just gets his welfare check from the government for not farming it!!!!!Mr. Turner, if you receive a division order, I believe that you have a producing well and probably have had a producing well for some time. Oil companies do not worry about getting the title perfect until they have production and they do stringent title work after they get production and before they send out division orders. You may have 6 months to a year to wait before being paid, if your title is good and marketable.
Mr. Turner, RW is on it. One doesn’t get a Division Order until a well is completed, producing and the title is determined. Check your title and lease against the DO decimal, If they match, send it back and a check will be forthcoming. Maybe a big one. You have a good operator as well. Get the first DO right because there could very well be many more wells to come depending on the success of the first one.
Tom, I agree with the landman. I have never seen a bonus amount in a lease. Terms and date of extension if granted may be there but the dollar amount, never. I think Dctex99 must be referring to a LEASE OFFER AND DRAFT.
GLH
I have a lease from Tundra Oil & Gas for some Manitoba acres that clearly states the bonus amount & when it will be paid. In this instance, we received an offer letter stating the bonus but, does that bind the oil company to pay? The letter and lease did not come together.
Gary, The paperwork states “Paid up oil & gas lease” Tom