Oil & gas discussion group for those interested in Weston County, WY. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
We have been approached by Iron Horse Resources offering a 5 year lease with a 5 year option. I am wondering if others have been approached by Ironhorse or others?
Dick Pulver: We were never approached by Iron Horse.. We did a deal with Meany Land back in May of 2011.. 5Yrs. with 5 Yr. Option at $40 per acre and 14 %... They initially offered $25 and 12.5 %.. we waited a few months and they came back on their own at $40.. and 12.5%. My family is old and any free money is gravy.. so I asked them to raise the 12.5% to 14% and they agreed.. really costs them nothing.. And my family choose to take the offer.. about 6-8 weeks later all of the stake holders had checks. I am not one of the lucky ones.. Just the son of one of the principal holders.. and an investor in Oil and Gas companies.. plus I live in NW Colorado with a son living in Newcastle , Wyoming.. so we drive through the area frequently... I think the $40 number was low.. but it probably bought a few refrigerators for the family.. and for people that run their refrigerators for 40 years.. this was a real bonanza.. If you are young.. i.e. under 50 I would be patient and try to get competitive bids.. No telling how high they can go if something starts to cook.. DJ
Darrell, Thank you for sharing this information. The Ironhorse offer stands at $50 per acre plus 14% royalty. I have been sitting on their offer for a couple of months as I tried to research things a bit more. I have heard from one owner that he has accepted their offer. At age 69, I can take it or leave it and see what happens over the next year or two, I guess. I sure don't like being locked in for 5 years with a second 5 year option. Do you have any sage advice on their inclusion of a title warranty requirement? I have read where it is not recommended to agree to that. By the way, our property is located in Township 45. I will make a posting as our situation progresses. Thanks again for your input. Dick
And they are offering the same $50/14%
Sorry no advice on the warranty requirement.. There are many details in these leases that are no doubt designed to favor the lessors..To ferret out all of the BS in a lease would probably cost a bunch then to negotiate a reasonable deal for both parties may or may not happen.. I just chose to trust the lessors and hope that they are able to get someone to drill a successful well.. on or near the property.. If that were to happen there would be plenty of money to go around.. This way there were no up front costs to my family.. which might not be recovered..Darrell
Our family business holds 800 mineral acres in Weston County. We sold the surface of this property to our longtime lessee back in 2011. Now our family business will be closing it's doors and the mineral rights distributed out to the heirs, via the Estates of our deceased fathers (brothers/partners in the business). I'm wondering if, like in North Dakota, we should probate the estates of our fathers, so that there is no question about the chain in title or can we simply utilize quitclaim deeds from business to Estates, then Estates to heirs? Can anyone recommend a decent Weston County attorney to help us?
Almost 2 years ago my mother passed away and we found that she owned mineral rights in Weston County. Just recently we recieved a phone call from a gentleman representing Land Energy Inc. located in Denver CO. saying that he would like to send us a lease agreement for Oil and Gas. After receiving the contract for lease and reading it a few times I am skeptical as to whether they are looking out for our best interests as well as theirs in the offering. I haven't done anything with the contract yet but I do want to take advantage of the rights we have handed down by my mother. Any suggestions or insight into what is usual or customary for mineral rights in this area would be greatly appreciated. Township 45 and 46 North, Range 63 West.
Looking for someone to evaluate our interest in wells. Family has been offered forgiveness of recent accumulated operating debt for interest in wells.