Sheridan County, MT - Oil & Gas Discussion archives

I think that Larry hit the nail on the head with the statement that leasing in the Sheridan area will slowly pick up as time goes on and more and more leases become HBP in ND and Richland, Roosevelt counties. There is still many acres to be developed in these areas so I believe that time and patience will be the key factors for mineral owners in Sheridan County.

Sheridan County Activity

It looks like the permitting is moving North from Richland and Roosevelt Counties with more permits in Roosevelt for May and June. Hopefully this is a indicator that Sheridan will be next? My take is that we are looking at 2016 before the action picks up for Sheridan. Just food for thought, what are your thoughts?

Good luck Sheridan County folks!

Jerry

Many of the existing leases are expiring in the next 12 months so that is a pretty good time frame for at least possible leasing start-up. I don't see any drilling in Sheridan County to hold the existing leases. New rates will probably be lower unless interest in the Torquay development kick in.

Larry:

I agree that leases will be expiring and many are expired and not being renewed. Something in the future will have to occur in order to jump start the interest factor in the lower Sheridan County area. Where is the Torquay development area?

Just wondering if anyone thinks things might pick up for Sheridan County due to the current events in the Middle East? Not looking to turn this into a political discussion it just seems that the USA needs to focus a lot more on the oil and related natural resources. If that were true I think it would be smart to work a bit harder at moving in to new areas, including Sheridan County.

Torquay is a new development in south Saskatchewan and under lies a good portion of the Bakken and three Forks. I read an article in the Oil and Gas Investment Bulletin about 10 days ago. I'll see if I can find it again.

You are right about focusing on our own development, especially infrastructure to get products to markets and even export the surplus. The new pipelines are a step in the right direction but these are primarily gathering lines to train loading facilities now. More major lines are going to be needed in the next few years.

Even though Bakken drilling has been active for years, the main focus of course has been in North Dakota while Montana still remains somewhat a new frontier. I think that it will take an operator or operators with a large capitals to explore these untapped areas. Drilling techniques have changed vastly over the years with the introduction of horizontal drilling but at this stage, I believe that they are still in the learning stage regards methods for oil and gas extraction as different areas require different techniques. It will only take one successful well to spur the interest needed to ignite the interest in Sheridan County. This will happen after much money is invested by companies financially able to play the game.

I will add my weight behind Larry Johnson and Charles Mallory and push hard. Infrastructure. Spend money drilling wells where there is none? or concentrate on wells where it's easier to get product to market?

As for what will happen if the middle east has even greater problems? We only have so many rigs and only add a few more every year. If we never received another barrel of foreign oil, our own pace would, could only be a slow steady push on the accellerator. New rigs have to be ordered years in advance.

While the middle east may be the immediate concern, it's just a campfire in comparison to the bonfire that Russia flexing it's muscles and cutting off the gas supply to western europe would be. I hope europe wises up and and sources more of their gas elsewhere.

Looking at Torquay website, third quarter statement http://www.marketwired.com/press-release/torquay-oil-corp-reports-2011-third-quarter-results-tsx-venture-toc.a-1591189.htm

They say they are using a newly developed fracture program. Anybody know anything about that. VAALCO drilled a couple of horizontal wells in the Salt Lake field and were not able to deal with water problems and have since abandoned their leases. Some think it was a frac issue. Therefore having minerals in Salt Lake, am always interested in new techniques. Lake Alma where Torquay drilled is just across the border.

Hi, I am new to all this. I was wondering if a well that is producing about 430 barrels a month. And It is not pumped all the time. They say it breaks down about 2 times a year always when the price goes up and holidays. It is an old vertical well. Can they plug it? I tried talking to the board and he agreed that its not right yet it is not making a million dollars, he said. Its not that much money {honey} he said. The amount I get is 200.00 to 450.00 in a month and it helps me a lot. I care for my Mom. Also the lease has been sold at least 4 times and they are still using the original lease from 1986. And they never notify me. Thank you for any advice I appreciate it.

Where is your lease?

Breakdowns are a common problem in the older wells. Please remember that this well qualifies to "Hold By Production" on your lease. If there is any potential at all for your property for future development, they will never stop producing the existing well. If the well were to stop producing for a period of (I believe 18 Months) and/or be plugged and abandoned then you may be eligible for a new lease and that creates the problem of no income at all until you lease again. Leasing in our area is extremely slow right now. You may look at previous questions and comments to see what is going on.

Please bring more questions and keep checking the information as is generated to be current on Sheridan County Oil.

HI, so if a well is producing is the company allowed to plug it? I have interest in Conradsen 1-7H and received a letter today. Any knowledge would be appreciated. Thank you.

TamilAE.

Yes, I believe that if an operator wants to plug an existing well, they are normally allowed to so long as they complete the process via the NDIC as they have the ultimate ruling on these type matters.

Tami.AE,

If you have leased your minerals, you don't have any money invested, I don't think you have any say in the matter beyond whether the operator is acting in a prudent manner. Your lease gives you the right to receive royalty, not to demand that an operator not plug a well. Of course if that is the only well, the operator had probably better hurry up and start a new well because the lease will likely end on it's own terms in the extended absence of production.

Tami.AE,

Please forgive my mistake, I should have cited the Montana Oil and Gas Commission instead of NDIC. Guess I currently have North Dakota on my mind. Mr Kennedy presents a good point in that the lease will likely end if the only well is plugged.

Just looking at the GIS map, it appears that Marathon has sold their wells to Triangle Petroleum. These wells are located in the T31 and T30 areas. Maybe Triangle has intentions on further development of this area.