Does anyone have information on any happenings in Valley County yet? We have two capped wells and expired/ unleaded mineral rights there. We have had leases in the past and were told by a geologist that did work there that there is oceans of oil underneath.
Chad:
The serious drilling activity in MT has not made it this far West. A well was drilled in the Glasgow area and was successful but don't know any particulars on the well or production. Most likely there will some seismic actitivity in this area in the near future. This area could have some Bakken activity along with other formations in the future. If leasing begins to pick up the area, I would be cautious and not take the first offers. I would wait for some wells to be drilled near your minerals and possibly get some serious money for your holdings. Developement in an area takes alot of time and this can be seen in both Roosevelt and Sheridan Counties which are just now seeing an increased activity.
Thanks for the input. The wells there now have been there since 1981 so we will see what happens. Do you have an idea of what things are going for right now? We have 400 acres on two parcels. We have the 660 acre space in between and capped wells on both parcels. We don’t live in the area so it’s hard to really know what’s going on. I did call the clerk who said that there have been people doing record searches out there right now but it’s pretty discrete. Can you recommend any steps that we should take or avoid? Again, thank you very much for any information that you might be able to tell us.
charles s mallory said:
Chad:
The serious drilling activity in MT has not made it this far West. A well was drilled in the Glasgow area and was successful but don’t know any particulars on the well or production. Most likely there will some seismic actitivity in this area in the near future. This area could have some Bakken activity along with other formations in the future. If leasing begins to pick up the area, I would be cautious and not take the first offers. I would wait for some wells to be drilled near your minerals and possibly get some serious money for your holdings. Developement in an area takes alot of time and this can be seen in both Roosevelt and Sheridan Counties which are just now seeing an increased activity.
Chad:
Looking at the Montana State Mineral sales results, it appears in the March 2012 sale, acreages in T34N;R43E went for the higher bonus/acre amount at $63.00/acre. Others were far less, down to $1.75/acre. The main bidder on these acreages was Fairway Energy, LLC, most likely a lease broker. I would google this company and contact thier landmen in order to market my minerals. If they are not interested, you might get another company name to contact. Looking at the past State Mineral Auctions, bonuses in this area are very low but increases were noted during the March sale. This tells me that the area is too far West of the activity at the present time to stir serious interests. In my opinion, I would continue to hold off leasing until at least the first quarter of 2013 and evaluate the lease interest in this area at that time. All it takes is one or two good wildcat wells to get the ball rolling. Good luck.
We have had 2 offers as much as $45 an acre plus royalties. The offers at that price are coming from a brokerage and won't get much more. If anyone has a method of talking directly to the oil companies let me know.
DWL:
In most cases, the operators hire firms to lease minerals in areas of interest. The company itself allows the record research and mineral owner contact to be conducted by an outside firm. You need to negotiate for the terms that your in agreement with as these outside firms get their final orders from the operators.
D W L said:
We have had 2 offers as much as $45 an acre plus royalties. The offers at that price are coming from a brokerage and won't get much more. If anyone has a method of talking directly to the oil companies let me know.
Hey guys. Just an update. Township 31N-43E 1600 acres and about to sign for $85 and 15%. any last minute thoughts?
D W L:
In your area, it appears that Anadarko Minerals, Inc. has several older vertical wells targeting the Mission Canyon, Charles C and Ratcliffe formations. Total wells is 5 as I counted. Production figures (12/13) vary from 90 bbls to 357 bbls. Was this the first offer received? What is the length of the lease? I think that the $85/acre is on the low side and the 15% should be 20%. The royalty is the most important as this is where your royalties will be calculated for the life of the well or wells. If you have 1600 nma, I would think your negotiating power would be very good. I would counter this offer with an increase in the bonus/acre and % royalty and no longer than a 3 year lease with no extension. Most likely, an operator has the motive of developing this area as numerous wells exist just to the East of your area and probably their goal is to target one or more of the formations previously mentioned. In conclusion, you do what you feel is best but I would take my time and research the entire situation before inking the deal. Gary Hutcinson, an oil and gas consultant who posts on this forum, is very knowledgeable in regards to the geological makeup of this area and most likely could provide you some additional guidance. I would contact him and get his take on your matter as he will most likely be able to tell you what is actually taking place. Good luck as my minerals in Sheridan and Roosevelt Counties will soon be on the negotiating table.
Thanks but I have spoke with Gary. I have countered their first offer of $45 with #300 and they informed me they haven't spent more that the $85 in that area and wouldn't give any more than 15%. I have been at this with them for a while. I am at the point of getting someone to drill one way or another. I am getting multiple leases to protect the whole from being kept in limbo.
D W L:
Sounds like you have done your homework. Good luck in your leasing venture and hope you get lots of wells. As I stated earlier, I am about to play this same game in the next few months.