Montana Oil and gas board has on its agenda that it is proposing setting a 1280+ acre spacing unit on a whole mass bunch of townships ranges:
Townships 28 through 32 North, Ranges 54 through 59 East Townships 33 through 35 North, Ranges 56 through 58 East
Scheduled for 12/14-15 hearing and states:
"It is proposed that stand-up 1280-acre or two-section temporary spacing units be established for the Bakken / Three Forks pool within the described area, excluding any lands that are currently subject to temporary spacing orders. It is further proposed that the authorized well for each spacing unit be located no closer than 1320’ (lateral setback) and 200’ (heel and toe setback) to spacing unit boundaries. 1 Designated lay-down or east-west oriented spacing units within the area will be administratively approved only if the orientation is required to avoid the creation of an orphaned tract. Applications for permit to drill with spacing units designated under A.R.M 36.22.703 will be administratively approved only in those cases where a spacing unit comprised of less than 2 sections is required to avoid the creation of an orphaned tract. It is also proposed that well location requirements for existing 2-section spacing units within the described area be amended to 1320’ lateral setback and 200’ toe and heel setback."
Any ideas about the significance of this BOG action on their own?
My husband spoke to Whiting Oil and Gas a couple weeks ago. The person in charge of the Sheridan County area for their company said that at this time they are not planning to drill as all the equipment and labor is tied up in Dakota. So the agenda for Montana Oil and Gas is interesting. Our mineral acreage is T31N-56E
I am just outside of this block, in T 34 N/ Range 54 East
Actually, the block is even larger but mostly not in Sheridan:
Township 23 North, Ranges 59 and 60 East Township 24 North, Ranges 58 through 60 East Township 25 North, Ranges 56 through 59 East Township 26 North, Ranges 52 through 59 East Township 27 North, Ranges 53 through 59 East
Whiting Oil and Gas spokesman was most likely correct in his statement that no plans to develope the Sheridan County area is in the making due to shortage of equipment. I believe this holds for others who have minerals leased in the Sheridan County area but the clock is running on these lease expiration dates and as the majority of these dates near , look for drilling to increase in the area. Also, we may see new operators developing this area such as earlier stated with Enterprise Energy. It will only take one monster well to break this whole area open.
Does anyone know what is going on with Kavon 17-16H and Bolke 18-4H. they are just South of my acerage and were spudded (according to webmapper) many months ago. They are in 37N 56 & 57 E. I keep expecting to see them listed as complete, It can't take that long to drill even Bakken Horizontals?
Steve, the Krowen wells and all of the rest except Hellegards are not showing completion yet. They put a pump on Marlow's well last week finally and are pumping water now. No oil yet. No one seems to know when any of them are going to be produced. Diane & I are in Maui for Christmas so we'll giver you a call when we get back and get together.
I have a lease offer to share and a couple of questions. My father received an offer from Spectrum Land Services. I blieve they are an agent working for RIM Operating CO. The offer is for just 2 net mineral acres in township 32 section 15 range 56e. 500.00 bonus for 4 years with a 2 yr option to extend at 400.00 Wondering if anyone has dealt with Spectrum or RIM and any thoughts about the terms. I know we want to limit the length to 3yrs. Thanks, Tom
Please let me know if you have mineral rights near or contiguous with Township 35N-Range 52E, sections 14 and 15. We're in negotiations with companies and are trying to determine Fair Market Value for this region to maximize return. Further, it doesn't seem to be in the lessor's interest to agree to an extension period in the contract. I.e., after the primary 3-year lease period, the contract would expire, which allows the lessor to re-bid the contract if the region is producing oil. Any comments on that are appreciated.
My minerals are located in T31N;R59E;Section 31 and they will not expire for another year so I am not keeping up with the current market values for this area. I will comment about your statement in regards to lease extensions. You are corrct in that allowing an extension is a bad deal for the lessor since these minerals could be worth alot more at the end of a 3 year lease than their current worth. Alot can happen in 3 years in an area with this much potential. Good luck and maybe someone can advise you about the current rates.
I don't know for sure who is the active operator in this area. Marathon Oil Company has our area leased and I talked with them several months ago to learn that they were interested in developing the area around T31;R59E. They have us temp. spaced but no permit to date. It could possibly be later this year or next before we find out what company is going to spot drill this Sheridan County area. I just monitor the Montana Oil and Gas website on a weekly basis for permits.
If you will google the Montana Oil and Gas website, click on "Weekly Activity Report" at the top, it will take you to the site showing the permits that are obtained and it is published on a weekly basis. Keep in mind, just because these companies apply for a permit, it is not a sure sign they will drill. I consider this step about 3/4th of the way. You won't find alot of drilling activity to date in Sheridan County but I've heard this County should see additional drilling as the 2012 years rolls on.
I noticed that a new completion has been posted on the Montana Oil and Gas site whereas this completion was in the Mission Canyon formation. The operator is Ominex Canada; location 31N;58E;Section 34; 180 bopd. ; TD:9414'. My question, is anyone familiar with this formation and why is this formation being targeted sincd the Bakken is present in this area.