I own mineral rights in Sheridan co Mt. I was contacted 6 years ago and signed a 5 year lease to explore for oil with Great Northern Energy Inc. A new oil company contacted me today and wants to explore also, but he also wants to know how much royalties am I getting from GNE for the oil the pumping out now! I haven’t heard from GNE since I signed the lease in 2006. I live in Minnesota, I can’t exactly drive out to see if this is actually true. Who should contact first GNE, Sheridan co sherif or a lawyer? I worry that by calling GNE they will pull out and pretend they where never pumping. I know about 1% of what I should and need help!
Is the new company VAALCO?
No Aegis energy partners, LLC
Not familiar with them, sounds like they could be another company who only does leases. Look at the webmapper and see if you can identify companies who have producing wells in your area, might be worth contacting them directly. You might think about talking to O'Toole law in Plentywood, they know the oil situation as well as anyone. I think Northern Oil and Amerada Hess have been active in that area. If I were you I would want a lawyer to look at any new lease. There is a lot involved with leasing, I sure wouldn't go over a 3 year lease. Drilling in Sheridan County doesn't usually happen until the last year of the lease.
Aegis probably wants to buy your interests , that is the only reason they would need to know what Great Northern is supposed to pay you, you can find your royalty in your lease. I would contact my lessee. Sometimes it is helpful for this letter to be written by a lawyer on their letterhead. You may want to check the address on your lease to make sure it is current, as that will be the last address of record and where any notices are sent. If you have moved they probably have no duty to look for you. It can also be helpful to make sure your title is good and that you have a deed in your name. If there is production and they owe you money, I think you will want to collect that before you consider selling to Aegis, otherwise Aegis will be buying your interest with mostly or totally your money. You can get production information for free online from the state of Montana website.
Thanks, great info. I have a lot of homework.
If there is production on your leased premises or any lands pooled with, you are entitled to your fractional royalty and I doubt seriously that they've been producing your minerals secretly. That would be blatantly criminal and with a little work you would almost certainly recover any monies and quite possibly damages owed to you. Do you have copies of Division Orders and do you know how many net acres you own out of the acreage leased? These are good things to know and stay on top of as a land owner but I wouldn't panic as that is not common practice.
There are many land companies out there that will say things to make you sign a lease with them and it's not uncommon for them to say things even "unintentionally" to make you think you're being ripped off. Email me if you'd like to discuss things further. Vaniiconsulting@hotmail.com. Oh, and it's free of charge.
Here is a quick map of the wells with production in Sheridan county
And here with the STR overlay
I can get you some more detailed info if you'd like. Just need to know where specifically you want to look. You can also view this map here - https://app.welldatabase.com/browse/well/public/BDkc1