Another line of questioning:
Any ideas concerning the benefits of leasing versus selling mineral rights in Weld County ??
Has anyone received any offers to purchase mineral rights ?
We have current offers for selling and for leasing and would like to make a wise choice.
Thanks for any input. Larry
My family was recently approached by a perspective buyer to purchase our mineral rights in Weld County. It seems there is still interest in the area. Here it is December and things still seem to be happening. What is your take on the current situation?
Bryan said:
Hello forum. I see a great deal of dismay as to leasing herein and many comments some good and some not so good. I have 30 years in the oil industry, primarily working as a petroleum geologist but moving into mostly management functions for many years. I co-own an oil and gas firm and also own minerals so I am familiar with all aspects of leasing from both sides of the coin.
It appears many of you have seen the Wyoming auction results and are basing prices on that. The Wyoming auction ranged from 30.00/acre to as high of around $3000.00. This difference is due solely to the tracts locations. Wyoming tracts that brought the big dollars are in what is called the Silo Oilfield - a huge Niobrara oil producing field from vertical wells so those tracts clearly were very valuable for horizontal drilling which is the key to all this. Other tracts that brought top dollar had wells which had been drilled in the past and reported or tested oil shows and fractures in the Niobrara. There were also tracts not having these Niobrara oil shows that brought very little. So you see it all depends on what has been found nearby recently as well in the past.
Anyone who has acreage within a few miles of EOG’s Jake well in Weld Co,. Colorado is going to recieve higher offers in the 1500.00+ range. Farther away and farther from the oil window of the Niobrara and you will get far less. I would not dealy leasing to long because this thing can die as quick as it came along in certain areas as dry holes and poor performing wells are drilled - and they will be. The good Niobrara wells have to have fractures and obviuosly the whole NE of Colorado does not have fractures in the Niobrara in the quantity as needed to make the excellent wells required to be profitable at 3.5-4.0 million per well without leasing costs.
Mineral onwer associations can be both good and bad and usually are worked to the advantage of a few in my experience. So I caution you on joining these as they really are not necessary if you do basic research but in some instances where many mineral owners share mineral interests in tracts they can be great. No larger mineral owner would probably be interested in joining. One other thing I am aware of is EOG apparently has shut in their Jake well after it produced 50,000.00 barrles in 3 months. Is it declining so fast they do not want that out publicly or trying to keep ultimate reserves quiet for another reason? I have no idea, maybe they just need a gas line. I can tell you that 50,000 BBLS has not near paid their well costs by far. So if you have fair offers I would get it while the getting is good in most cases. Be greedy and you may end uo being needy.
Good luck to all in your leasing and hopefully drilling will be good to you.
A New Year is arriving.
Company Budgets that "shot their wad" in 2010 - (Lone Tree, Springfield, etc) are entering a new bidding war for 2011 - attempting to pick up "missing pieces in the patchwork of a Weld county oil quilt.
Weld County is offering ten more properties in January 2011.
The two most recent leases by Weld County were in October.
- $1,100/acre - - Bayswater Explorations and Production T7N-R64W-S28-SE1/4 containing 80 acres
- $530/acre - - Bolod Resources and LLC T8M-R66W-S24-E1/2SE1/4
Those that have waited out the original offers (threats of lease now - before the money runs out) perhaps knew that what has sat their 20 million years could continue to sit a few years more.
Resource Play - referenced in this thread (once free) is now charging $150 per month.
Please be aware - the same information is easily accessed through inputting GPS from the Colorado Oil and Gas Commission into Google Maps.
Output from Elmer and Gemini and also Jake are now available at the COGC.
2011 promises to a great year in Weld County.
May All Live Long and Prosper.
Sincerely,
Abdul
I would love to see an offer of $1500 per acre at a 20% royalty on the 80 acres I control in weld county T 10N 62W. I hope 2011 offers will come in around this figure.
Abdul said:
A New Year is arriving.
Company Budgets that "shot their wad" in 2010 - (Lone Tree, Springfield, etc) are entering a new bidding war for 2011 - attempting to pick up "missing pieces in the patchwork of a Weld county oil quilt.
Weld County is offering ten more properties in January 2011.
The two most recent leases by Weld County were in October.
- $1,100/acre - - Bayswater Explorations and Production T7N-R64W-S28-SE1/4 containing 80 acres
- $530/acre - - Bolod Resources and LLC T8M-R66W-S24-E1/2SE1/4
Those that have waited out the original offers (threats of lease now - before the money runs out) perhaps knew that what has sat their 20 million years could continue to sit a few years more.
Resource Play - referenced in this thread (once free) is now charging $150 per month.
Please be aware - the same information is easily accessed through inputting GPS from the Colorado Oil and Gas Commission into Google Maps.Output from Elmer and Gemini and also Jake are now available at the COGC.
2011 promises to a great year in Weld County.
May All Live Long and Prosper.
Sincerely,
Abdul
Has anyone got knowledge of the lease terms in T7N R61W???
and what were they a year ago?
Thanks D Miller
David M Miller said:
Has anyone got knowledge of the lease terms in T7N R61W???
and what were they a year ago?
Thanks D Miller
I heard $300.00/acre and 1/5 royalty for three years paid-up. a year ago it was $25.00 and 1/8 for 5 years.
A year ago it was $25.00, 1/8th royalty for a 5 year paid-up lease. I heard now it was $300.00 & 1/5th. Not sure about the primary term. Why do you ask? Is someone buying leases in this area? If so who?
David M Miller said:
Has anyone got knowledge of the lease terms in T7N R61W???
and what were they a year ago?
Thanks D Miller
The Results of the Weld County, January 5th, 2011 Oil and Gas Leases auction
All were leased at $400/acre to "Bayswater Exploration" and the ususual county 20%.
All nine parcels are in Township 3N, Range 63W, and Section 24.
6 ten acre parcels
2 twenty acre parcels
1 fourty acre parcel
The tenth parcel Township 7N, Range 63W, Section 27 containing 480 acres had no bid at this time.
http://www.co.weld.co.us/assets/CDD2424b4DaAD3Cb4a64.pdf
Mineral vs Surface in Weld County
http://www.coloradoan.com/article/20101230/NEWS01/12300334/New-West-landowners-lasso-energy-promise
Seismic Testing - Pawnee Grasslands
http://www.coloradoan.com/apps/pbcs.dll/article?AID=2011101090342
Sincerely,
Abdul
Has anyone leased in the T11, R59, Sec. 8 area of Weld County?
I was contacted by a seismic company wanting permission to do tests on my 80 acres that I don't have leased yet. Does this help or hurt my position for leasing the property.
scott gray said:
I was contacted by a seismic company wanting permission to do tests on my 80 acres that I don't have leased yet. Does this help or hurt my position for leasing the property.
It could go either way. A word of advise. If you can make them lease your property prior to conducting the seismic since it could condemn your minerals if it does not shoot out based on current lease prices. No do give them an option to lease as if it does not shoot out you will never see your lease money.
Sorry, I realize this thread is about Weld County, CO, but I was wondering if anyone could provide any info. about Goshen County, WY as well. I’m dealing with property owned in T20N, R62W and have received an offer containing a bonus of $400/ac and a 1/6th royalty. Does anyone know if this is a competitive offer for this area? Thanks in advance!
Does anyone have information on El Paso County, Colorado?
TWO Good Articles in the Greeley Tribune last week.
Oil boom in Weld helping to sustain Colorado economy
Can anyone give me information on an old lease that is Section 15, 7 North, 59 West in Weld County ? Any drilling around this area ? Thanks
Dave
Dear EK, Mr. Engbrock, Mr. Fisher,
Under the http://ogcc.state.co.us - "Colorado Oil and Gas Commission
A. Select Permits
B. Select the County
C. After loading the data - Use your own browser search/find to example 7N or 59W
D. Click on well number for production data
MORE NEWS from GREELEY - full article available on link.
Greeley Tribune
Monday, January 24, 2011
http://www.greeleytribune.com/ARTICLE/20110124/NEWS/701249989/1001/RSS
Synergy Resources Corp., a Platteville-based domestic oil and gas exploration and production company, will sell 2,750 net acres to an independent oil and gas exploration and production company.
The purchase price of the land, in undeveloped Weld and Morgan counties, is $5.65 million, or about $2,200 per net acre.
Sincerely,
Abdul
(BTW Egdars reports Synergy Market CAP to be about 68million)
Thank you for your kind help, Abdul.
Abdul said:
Dear EK, Mr. Engbrock, Mr. Fisher,
Under the http://ogcc.state.co.us - "Colorado Oil and Gas Commission
A. Select Permits
B. Select the County
C. After loading the data - Use your own browser search/find to example 7N or 59W
D. Click on well number for production data
MORE NEWS from GREELEY - full article available on link.
Greeley Tribune
Monday, January 24, 2011
http://www.greeleytribune.com/ARTICLE/20110124/NEWS/701249989/1001/RSS
Synergy Resources Corp., a Platteville-based domestic oil and gas exploration and production company, will sell 2,750 net acres to an independent oil and gas exploration and production company.
The purchase price of the land, in undeveloped Weld and Morgan counties, is $5.65 million, or about $2,200 per net acre.
Sincerely,
Abdul
(BTW Egdars reports Synergy Market CAP to be about 68million)
PLEASE FOLKS!! I understand the excitement of your possible windfall of "found money" and I realize all the freedoms and possibilities that may be provided to you by these, but before you make YOUR decision please watch the documentary "Gas Land"..
Thank You
Thanks. I also have been consulting an attorney and a minerals specialist who has been in this business for more than 20 years.
Steve said:
PLEASE FOLKS!! I understand the excitement of your possible windfall of "found money" and I realize all the freedoms and possibilities that may be provided to you by these, but before you make YOUR decision please watch the documentary "Gas Land"..
Thank You