Mr. Lund, I have run across Grace Oil in searches of NDRIN records. I’m pretty sure they have been in business for over a year and I haven’t heard good or bad either way. If in doubt use normal caution, deal with them by e-mail and mail and save everything. I think they are middlemen and wouldn’t expect top dollar from them.
Mr. Lund:
I agree that most likely this company is a middleman operation. With all the publicity about the Bakken over the past few years, there is always some small operation cropping up, hoping to make some fast bucks. As rw stated, be cautious of their dealings and keep good records of all correspondence. You might also contact the BBB of Dickinson in order to possibly get some additional info on them.
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If a majority of the parties to same mineral rights have signed a lease and a minority have not (say 4 of 7 have signed 3 haven’t), can the company drill on that land? What is a “forced pooling agreement”? Does a good faith attempt need to be made by the company to sign all owner parties?
Does any body have the formula for royalities at 22% ?
Thanks David ! Where are your mineral located ? We are in northern GV any idea of the recent (2012) bonus market here? We have heard many “stories” from $350- $500- $1000. but need find facts only.
Marlene: Once a majority of the MINERALS (not the owners) are controlled, through leasing or ownership the operators can go forward and drill. Yes, the operator needs to at least contact and offer a “fair” lease to the unleased parties. This is usually an “average” of what is already signed (ie NOT top dollar). Those not signed will be “forced pooled” which rules vary by state. This is different then “a Pooling Clause” which is a clause that states how big of a “group/pooling unit” the operators can put together for a drilling unit. (In Montana and North Dakota pooling units are requested by the operator but determined by the OG Commissions)
Here’s what a landman told me.
Let’s say you own 120 acres in a 1280 drilling area. Take 120 and divide it by 1280 to get the percentage of how much you own in that 1280. In this case it would be 120/1280 = .09375. (9.375 percent of the whole) Now multiply this 9.375 by your 22% and you get 2.0625 of the total.
This is my understanding…am open to corrections!!! 22% is 4% higher than we get!! Good going!!!
Not sure about bonuses as our lease was signed 3 years ago…and now the wells are “supposed” to be going in as the lease expires this year. If they don’t go in, I’m sure we’ll be in the “bonus” conversation. We have rights in Montana, Roosevelt County.
David:
You will most likey find out soon if the drilling will happen on time as I have already top leased some acreage in Williams County due to expire in September 2012. I also have acreage in Roosevelt County which will not expire until until late 2013, early 2014. Thus far, drilling is moving at a snails pace in this area. Who knows, I might get a chance to get a new lease out of the deal.
Richard:
In 2012, some of the completions in MT for Bakken wells have IP’s of …1227, 755, 1544, 1133, 340, 224 (bopd). One Three Forks well with IP of 141 (bopd). Most are in Richland County while a couple are in Roosevelt and Sheridan Counties. Since drilling activity is just beginning to increase in the Eastern MT area, we will see more and more results as the year progresses. As David stated, go to the Montana Board of Oil and Gas website; click on Annual/Weekly Reviews (at the top); click on each week and find “Completions”; this will provide the information you are looking for. It looks like thus far, some are good wells while other are fair to minimal. Let’s just hope the “good” outweighs the others in the coming months.
Which sections are your wells located in? Curious how long after permits were pulled that drilling started. Was Brigham the driller?
You can find all this information on the Oasis Petroleum website when you look at their publications that they put on their website on a monthly basis. I forget the actual name of their report/presentation…but, as mentioned, I’ve found it updated on a pretty much monthly basis. I haven’t found anything similar for Brigham.
actually we have received word that two wells in our sections are now “spudded”. The first one spudded is having some problems with what the landman called “leakage” and they are working to get that fixed. He tole me that they have put “way too much money” into the well to not get it fixed and operational. The second well was spudded in early February and I haven’t heard how that is going, however, I do understand the drilling is now taking about 25 days plus/minus with the frakking crews making it longer as they are in short supply!! So…we wait…and hope…
We are in the SW corner of 28N 58E…have several sections in that area. The driller is Oasis Oil…and they are the ones that have spudded two wells at this point. We also are in the SE corner of 28N 57E…there is one well that has a permit to drill, but we’ve heard NOTHING in terms of any activity in this area…and yes, this is Brigham in 28N 57E…there is a line of ownership of leases between 57E and 58E. Note that Oasis is now “double padding”…using the same pad for two wells. One well is going North into our area and the other, off the same pad is going South. This has happened in two of the sections in the SW corner of 28N 58E.
Not knowing exactly what"s going on with drilling in ND & MT I only have a comment from my experience in the O&G industry. Back east (PA) companies are putting six or more wells per pad site. But for the most part they are drilling for NG and not oil, although, some wells do bring in some consindate liquids. I do have a question if there is anyone on this site with the information. I am interested in finding out if anyone knows any production figures for any of the newer directional wells which have been drilled in 2011 & 2012 in Montana? Thanks for any replies
In the chart sections of their presentation they list their holdings, their activity, they show all the double padding they are doing…production, and much much more. It’s kind of fun to try and figure it out. I’m only about 25-30% up to speed on figuring it out actually!!
Richard…go on the Montana Board of Oil and Gas website http://bogc.dnrc.mt.gov/ then to on-line data…then to Live Data Access and then to wells…and you can check the name of any and all wells by a variety of ways: by well name, by company, by number, and even by location. Once you click on a well, there are tabs for history, production, location, etc… Good luck…may this work for you!!
Miss SC,
It sounds like they want your mineral rights badly; working 2 years and presented a contract offering you to set the bonus amount. hmmm…
First, don’t worry about them drill under your land, they cannot. Note that I make that statement assuming you own BOTH the surface and minerals. If you only own the surface and the minerals have been leased then say hello to your new neighbor the well. The other thing that can possibly occur (but not secretively) is that you could be force pooled into a drilling unit if they needed your property badly enough.
speaking of “they”; what company are you referring to? It is best to disclose as much as possible on these boards to educate people and vice versa.
Now back to drilling under your land and assuming you own unleased minerals and haven’t been force pooled, then they can’t drill under you and they can’t drill next to you and “suck out all your gas and oil”. The state will have setback regulations (meaning how far from drilling units etc. wells can be placed) and importantly the DNR in your state are responsible for monitoring where they drill and the horizontal route and distance to ensure that they stay within the drill unit (likely 640 acres or even more).
Hope some of this info helps. Good luck.
Wilson
Actually Sampson is the actual driller but there’s another company that is doing the leases for them or is probably reselling to Sampson for their own profit–they’ve said they dont resell but I really think they are since they’ve convinced so many people to sign the last 2 yrs for $50/acre Bonuses, 18% Royalty rates. The last offer was $250/acre Bonus…I’m waiting all of this out and not signing anything.
But as far as the trespassing an setting up survey stakes on my property without my permission–I’m pursuing what I can do.