Thank you again for the professionals who devote their time for our benefit.
This is regarding: T7 R61W S23 &24, Weld County, CO
Our rights were leased via Noble until 2016, with no extension offered. Bison, via Norwood has contacted us with a $250.-, NMA - A Royalty of 18.75% for O&G produced, saved and sold attributable to our NMA - A 4 Year term w/ a 2 year extension at the same bonus rate (but no mention of royalty) and of course a deadline of August 10th 
… 
. I’ve performed research diligence, took a trip using the COGIS* map and gone down each avenue I’d used during our Noble negotiations. My guess is there’s production value in the surrounding range & sections.
Any assistance provided would again be appreciated, this group provided valuable help for my father and I during our first trip into O,G & M land.
Thank You, John
- Does anyone have issue with the VOGIS map using Safari or is there a trick
Hey John,
I looked at your property on our website and it looks like there are permits in Sec. 24 and there is also PDP (proved-drilled-producing) wells in the immediate vicinity. Which is both good and bad for your property value. Good meaning that there are proved reserves that can be booked for your property which adds value. The bad part is that the PDP was drilled in 2011-2012 and have been very poor performers. This means that any potential wells that may be drilled on your property will be predicted to perform in a similar way.
However, the PDP wells around your property were drilled and completed using very poor performing techniques. Operators in the DJ Basin have made vast improvements to their completions strategies which have yielded phenomenal results in similar areas. I would expect massive improvements to future wells drilled on your property vs. what has been drilled nearby… depending on who the operator is.
I highly recommend to not assume your property is worth whatever was previously offered and accepted by either yourself or someone nearby. The only way to understand what your property is actually worth is to get a proper appraisal done for the property.
Thanks,
Craig
