I am about to sign with these guys because I believe they intend to drill rather than flip my lease. New to this, I've been told that is the most important issue- are they going to drill? Sign with the oeprator. This company looks to have the backing. Thoughts on this? Help!
Ted:
Looking at the website for this company, it appears to me that they are comprised of a group of investors who is attempting to join the race. They will most likely drill some wells in the ND/MT area but my concern would be how long will their finances last if some or all of these wells are not good producers. Where are your minerals located? If your in a "hot" area, you might want to market these minerals to a more established operator. If you do lease to this company, be sure to limit the lease to 3 years with no extension. Also, do your homework and get the going bonus and % royalty rates for your area.
Also, if you do a search on this board for Shale Exploration, there are people that have posted that they weren't paid (some that were). I can't say if they are good or bad, but I would say be careful, investigate them thoroughly and take your time. I always advise people to not accept sight drafts, bank drafts, letters of intent, Orders for Payment or any other such similar instrument that ties up your minerals with the promise of payment in the future. Demand a company check or cashiers check and even then do not provide your signed lease until the check has cleared.
Wilson
Charles...you hit the nail on the head! I am trying to find out if there are any other big companies drilling Daniels County. Shale Exploration seems to be the ones. They've got some backing I see from google research- Sam Tallis and Greehey. I cold called some people and businesses in this small town- Scobey. Shale Exploration is there with an office actually there with people to talk to. They seem to be the real deal and I cannot find any information on the other companies. I'm seriously thinking about flying out there this week for a couple days.
Ted:
Sounds like your going have a hands on tour of the area. Be sure you have a place to stay as I hear some areas of MT (especially in the Eastern part) , the motel vacancies are scarce. By taking this trip, you should be able to research the area and decide who is developing or might develope these mineral acreages. One of the best places to learn about the local happenings, is the local coffee shops. You would be surprised what I have learned over the years at the coffee shop as this is where alot of the oilfield workers tend to chat business. Good luck on your trip and findings.
Ted Rothstein said:
Charles...you hit the nail on the head! I am trying to find out if there are any other big companies drilling Daniels County. Shale Exploration seems to be the ones. They've got some backing I see from google research- Sam Tallis and Greehey. I cold called some people and businesses in this small town- Scobey. Shale Exploration is there with an office actually there with people to talk to. They seem to be the real deal and I cannot find any information on the other companies. I'm seriously thinking about flying out there this week for a couple days.