Washington County Colorado

Oil and Gas Leasing Help
1

Does anyone know of activity in Washington County Colorado and if so where this activity is in relation to Section 24/3N/53W ?

If anyone in this area has knowledge of where leasing is going on i would like to hear from you and if you have signed a lease,whats the going bonus,royalty, and term? We are currently being offered a 35$ bonus, 1/8 royalty, and a five year primary with a 3 year option.

Thanks in advance,

David

2

David,

Some 10 year leases have been taken west of you that expire in 2021. In my mind a ridiculous thing to do given the location of the township on the NW corner of the Las Animas Arch and the fine oil field just east of Section 24 and the oil wells from the D and J sands south and southwest of you. All of these sands are below the Niobrara which will be tested in the Long term. Lots of leasing activity in the south end of the county near Kit Carson County border. I suggest that you do more geologic potential research of your land before accepting such a low bonus and long term. There are better ways to get a well drilled if you have considerable acreage. After all, its the royalty that you want for the future, Right?

Gary L Hutchinson

Minerals Managment.

3

I have 480 acres around the 5s 52w area. Any activity there?

4

Bob,

A major player is picking up a good lease position and another Bakken driller is leasing as well. A smaller operator has permitted a couple of wells to the east of your Twnship. With 480 acres, I'm sure you will be a lease target. Made sure you get a good deal while providing incentive to drill. If you have already leased, you are in for a long wait i'm afraid.

5

Thanks for the info Gary. I heard a well was drilled to approx. 10,000 ft, instead of the usual approx. 4,000 ft. somewhere around Washington county. I was told Oil company is tight lipped as usual. Any knowledgw of this? Early 1970's a 4200 ft. well was drilled on my property, found natural gas, but they did not go any further as it wasn't worth it then because of low oil prices, expense, etc.

Thanks,

Bob

Gary L. Hutchinson said:

Bob,

A major player is picking up a good lease position and another Bakken driller is leasing as well. A smaller operator has permitted a couple of wells to the east of your Twnship. With 480 acres, I'm sure you will be a lease target. Made sure you get a good deal while providing incentive to drill. If you have already leased, you are in for a long wait i'm afraid.

Gary L Hutchinson

Minerals Management.

6

Gary,

What would be considered good lease deals and what type of incentive to drill would you suggest.

Gary L. Hutchinson said:

Bob,

A major player is picking up a good lease position and another Bakken driller is leasing as well. A smaller operator has permitted a couple of wells to the east of your Twnship. With 480 acres, I'm sure you will be a lease target. Made sure you get a good deal while providing incentive to drill. If you have already leased, you are in for a long wait i'm afraid.

Gary L Hutchinson

Minerals Management.

7

Gary

Thanks for your time.

Sure would like advice and info on leasing and drilling incentives. Hope to hear from you. Thanks, Bob Kelley