Mary, I don’t know if this was covered but if it has been my apologies. When you get offer (s) they will probably present you with a “standard” lease. Remember everything is negotiable and probably be best to hire a O&G attorney there in Montana. They can help wirh your mom’s interest and probably well worth the money spent. Good luck.
Mary…think about it from the Oil Company’s point. Would they offer their BEST…if they knew that it was going to be shopped? Think about buying a car. If you went to dealer Y and you got a deal…but walked out to dealer X with that deal in hand, do you think dealer Y would give you their BEST offer if they know you were not only shopping it but where going to tell all the other customers that dealership was going to have?
Do you think only mineral owners are on here? You just squirreled any possible deal with several companies I would assume, by posting that you are going to tell everyone what you are getting.
And…all minerals are not valued the same. So even if you announce them you are only yourself, not helping others. There are a lot of variables in how companies value them. How much does the owner have? Do they control over 50% in a 1240 spacing? where EXACTLY are the minerals located? This can vary wildly within just a mile or two.
There is something to be said for both sides of this discussion. Mary, some operators won’t get into a competitive situation. They’ll buy a lease cheap, or not at all. That is fine. Your job is to get the best deal you can, their job is to get the best they can. Yet in competitive areas companies know they’ll be competing offers.
So it is proper to tell XTO that Hess just gave you “a higher offer”. Each company knows what they’re willing to pay. Sometimes they’ll up their offer, other times they’ll just stop bidding. Yet as Mr. Dayton states, it may be detrimental to post a blow by blow account where every offer is publicized. I’m not suggesting you hide your results, just focus on getting your deal negotiated.
Mr. Dayton, on the other hand the world of leasing has changed. Folks are no longer reliant on hearing what their neighbor leased for. On this site and several others mineral owners in Bozeman, Boston and Baton Rouge are comparing notes. Bonus amounts and royalty rates will continue to become more and more public. While it may make the broker’s job more difficult it is a trend which will continue.
I live in Alberta and my bank will not accept the bank draft from Shale Exploration in Scobey, any crazy canucks on here with any ideas?
Thanks
Dan: Some companies file a type of “notice of lease” with the county in which they state the legal and probably the MR owner. This way they do not record the lease and do not disclose financial information.
Sandra, as to the drilling question… Numerous things determine where to drill first. So there is no absolute answer to your question. Yet often that decision is based on the following;
If they have seismic data, or info gleened from previously drilled well cores, they’ll drill where it looks most promising. A successful well will then typically lead to more drilling nearby. After they confirm a play has production they might drill out on the fringe in an effort to define the boundaries of the productive area. Another item driving drilling schedules can be lease expiration dates (drill it before the lease expires). Though for now, I don’t see this coming into play in Daniels County as most of the leases are far from their expiration.
Shale Exp. has stated their drilling will begin in Daniels Co. later this summer. So it’s possible you may see drilling soon. Yet for most of us, since this is in a very early stage, drilling is more likely three or four years down the road (if at all). Good Luck with your tax form.
Are there any Canadians on here who know how to fill out the W-9 tax form?
Also, how do drilling companies decide where they are going to start drilling in a county? For instance Daniels County Montana?
Sandra, are you a US citizen (or corporation, partnership, or trust) living in Canada? If yes, then use the W-9. If you are a Canadian citizen, then no, it’s not. You will most likely need to have TD1 from the Canada Revenue Agency.
Daniel,
I am a Canadian citizen living in Canada. The W-9 came with my lease pkg. from Shale.
Thanks Eastern MT for the drilling information. I’m still trying to find out if a W-9 is the correct tax form for me. Any Canadians on here who have figured this out, I would appreciate any comments.
Great article on Bakken pricing on the “rbn energy” website posted on 6/8/12. Explains in detail the pricing factors.
Joanne:
You can learn alot via the information provided on this website. I recieve a dailey blog and it serves as one avenue to stay abreast of the most current information concerning the oil and gas industry.
The Billings Gazette had a great article this morning on a new Montana company. They are trying to use these trailers to recover some of the gases that have been flaring in the Bakken. When no pipeline is available they have to flare. This should be interesting to see how many trailers they can use. http://billingsgazette.com/business/montanans-create-company-to-cap…
Apache announced a 300,000 acre position in Daniels County on June 14. Take a look at their acreage map here: http://www.mineralrightsforum.com/group/danielscomt/forum/topics/ap…
Does anyone have an AFE or information as to latest well costs from Brigham/Statoil? I’m curious how the purchase of Brigham has affected well costs.
MLH, it could be that there is about to be activity in the area, which usually makes prices rise, but they won’t be able to get started drilling before lease expiration. Oil is back up also and lease prices can appreciate just like commodities. They probably want to lock in a low price. Not to mention that the mineral owner probably hasn’t been giving a great deal of thought to how much they should ask, how much their minerals may have appreciated since they signed the last lease, when the expiration is a year out.
Article in June 2012 issue of Poplar Mechanics on the Bakken play. Pretty general article.
Why would a oil company want to extend a lease that will expire next year?
I have mineral acreage on 157N, 97 W sect 9. The well CassI-9H has been drilled and there are now several storage tanks on site. The well is still under confidential status until the 26th of Oct. My question is are they pumping oil now and storing it or are the tanks just there for when they do start pumping? If they are storing it, then will the royalties for what has been stored be on the first royalty check which should be in Oct. Also can they still store and sell while the well is under confidential status.
Thank you and I look forward to your perception on this
Bob
This area in GV has recent rig called Riechoff just completed plus stakes going in the surrounding areas with the rumor of 12 wells in that area. Some are on a waiting list to get equipment to that area.
Something is clearly up in that area, rumors that Haliburton is now showing interest in that area as well. Sect 26 is suppose to have a pool of oil under it and talk about some natural gas pipeline in that area as well. Possible reasons for extensions: