We leased a half section at 139 N 96W a couple of years ago for $500/acre and 3/16's royalty. The leasing company, Longshot, just subleased the deep drilling rights to MBI, from Missouri. Is this normal procedure? Our lease comes up for renewal next year, and I am trying to figure out what to look out for. I wouldn't have known about it if a landman hadn't contacted me about the deed.
Ms Gress, leases are frequently assigned. Longshot sounds like a speculator and not an operator. When longshot assigned your lease, either their longshot paid off or they were limiting their losses. The upside for you is you now have what I would consider a slightly better chance of getting a well. I don't know the terms of your present lease, but if more activity moves your way and your lease expires, I think it likely that you will be able to negotiate a more favorable lease, and I'm glad to see you are trying to keep yourself informed. Good luck with your minerals.
Thanks for the advice, it is appreciated. I have been looking for some kind of seminar designed to give newcomers to this issue some basic information, but haven't had much luck. Have you heard of anything like this by any chance?
r w kennedy said:
Ms Gress, leases are frequently assigned. Longshot sounds like a speculator and not an operator. When longshot assigned your lease, either their longshot paid off or they were limiting their losses. The upside for you is you now have what I would consider a slightly better chance of getting a well. I don't know the terms of your present lease, but if more activity moves your way and your lease expires, I think it likely that you will be able to negotiate a more favorable lease, and I'm glad to see you are trying to keep yourself informed. Good luck with your minerals.
Ms. Gress, I know that seminars exist, and it probably wouldn't be a bad idea for me to attend one myself. Have you looked under mineral help at the top of the page ? I think there is much basic/ useful information to be found there. On the Bakken Shale forum, Joel recently posted a link to another good source of information. A seminar may still be a good idea after gleaning as much information as you can from those two sources, doubly so, since you will be armed with questions. I wouldn't bother with a seminar that didn't have a Q&A afterwards. You can ask questions here and in other groups, search the forums, or start your own threads. There are many knowledgeable people here who will help. Since you are presently leased, you should have time to learn what you need to know. Ms. Gress, you make your own luck in this business by being informed, I wish you the very best of luck.
Hi, and MBI is Missouri Basin Incorporated, they are a well service company that is raking in millions now in the Bakken, but also have a subsidiary that is a land leasing company…These people are passing around minerals, and keeping a percentage of royalties for themselves, then selling them again to another company. It’s happening all over, sadly but true…
True Jody. If people get a chance to lease again I hope they can do so without alot of extra fingers in their pie on their new lease.