Our family has hired an attorney to deal with Statoil. Apparently, Statoil did not respond to the first demand letter regarding royalties from a well that had been producing since Nov 2011.
Another question about Statoil. Statoil has offered me an oil and gas lease for township 153 North, Range 98 West, Section 24. $800 per acre, 3/16 royalty, but BACKDATED to Nov 11, 2011, when the well they dug (or their predecessors dug) started producing. Well Jay 24-13 # 1-H. Mr. Kennedy has found out for me that the well has had problems, with 0 production since Nov 2013 (I think), production to date approximately 23,000 barrels.
The reason I received an offer last month was because another relative hired the attorney, who wanted our leases, and she told the Statoil agent that my brother and I own a greater interest than anyone else in the family (all owners having already signed last year or the year before).
So I can't figure out why backdate the lease, and why sign at all, and why they send a letter with a somewhat low bonus offer. What would the royalties amount to? Also, since production has ceased, and if they plug the well, what happens to the 3-year term (which would end Nov 11, 2014). What would they have to do to extend the lease, since they have applied to plug it? What rights am I giving up by signing? Since they never offered me a lease before?
Thanks in advance.