My Lease is Up for Renewal Mid 2014. 12 Net Acres in Billings County. Township141N Range 98 West. How much can I Lease for at the present time? Jerry Beak Did you get your $1800 / Acre, 3 Years Lease, 18% royalty? App. Some Feadback
Which Company's are offering to Lease in this area?
Thanks Bruce
We got $1500 an acre for 3 yr lease on 10 acres, and 18.75% royalty. Township 139-Range 100-Sect 14.
Jerry
Bruce Wernow said:
My Lease is Up for Renewal Mid 2014. 12 Net Acres in Billings County. Township141N Range 98 West. How much can I Lease for at the present time? Jerry Beak Did you get your $1800 / Acre, 3 Years Lease, 18% royalty? App. Some Feadback
Which Company's are offering to Lease in this area?
Thanks Bruce
My Lease is Up for Renewal Mid 2014. 12 Net Acres in Billings County. Township141N Range 98 West Section 14 and Section 23.
I see that Continental Resources has put up a Confidential Well
Start Date listed as 3/6/2014 (info. Release Date 8/6/2014) The well is in section 23.
Diamond Resources has sent me an offer to renew the lease for another 3 years. What would be a Good Lease Renewal Offer from them? (Royalty and Net Acre Price for the 3 years) They have not sent me a new copy of a lease and no mention of a new royalty offer.
ANY ADVICE ON HOW TO PROCEED WITH THIS WOULD BE APPRECIATED.
They want me to sign an agreement for the Renewal and a Deposit Bank Draft of approx 10% now and the remainder Bank Draft for the Balance that I will get when the old lease expires in June.
Bruce
Bruce, that well is confidential and there is no telling which way the wellbore will go for certain, but it likely is going to drain your spacing, or another well will be spud to drain your spacing immediately after drilling this one, they have plenty of time and a rig right there. The odds of completing this lease renewal and getting a bonus check are almost nil. If you could get a new lease, it would be in the way of an insurance policy for the lessee, they would not pay you unless your old lease did in fact expire before operations commenced to drill your well. If they did commence drilling your well which resulted in production, as most do, prior to your current lease expiration, your current lease would continue and any new lease, that might have better terms, would be ignored unless words to the contrary were in the new lease.
I believe for any negotiations to be beneficial to you, you need a lease REPLACING your first lease or a novation which would be an agreement changing the terms of your current lease such as more years in exchange for more bonus and royalty.
I hate to say it but I think this offer is just an insurance policy, set in motion a couple of months ago which is no longer needed by the lessee. You can go ahead and contact Diamond, they may not even respond after checking and seeing that well spud. I wish I had something better to tell you. This situation is not uncommon with many wells being drilled in the last year of a lease, some are going to come down to the wire and really yours is not even that close. I hope you get the best possible well for your area.
Hi Mr Kennedy
I already have a lease with Continental Resources through Diamond Resources. It expires June 2014.
They just sent me a letter because they want to renew the lease for 3 more years. Am I missing something here?
Bruce, the well they are currently drilling will most likely hold your current lease by production. Why would they pay you again if they can extend your current lease by continuing operations? Do you believe that they would be bound even if they did send you another lease form?
How long is the continuing operations clause in your lease? Words to effect that this lease will not termiate on the expiration date if lessee is currently attempting to gain production or if no more than 90-180 days have lapsed between the abandonment of one well and the beginning of another. They don't put those words in there because they want to fill the page up. Operations doesn't mean a righ has to be on site either, they could dig a pit, build a road, all sorts of things could constitute operations.
In my opinion, the chance that the well currently drilling is not yours and or will not produce anything is on the close order of 1%. They will not need a new lease. Oil companies may give money away but not to mineral owners, they squeal like stuck pigs over a half percent of royalty. Please explain to me why you think they would pay you for a lease they don't need?
I am trying to figure that out also (why they are offering me a lease renewal). The well that I see on the map is #27290 Location: SESW 23-141-98 Volesky 1-23H1 UKRAINA My Mineral Rights are: Township: 141North Range: 98 West of the 5th P.M (What is 5th P.M.) Section 14: W 1/2 NE 1/4, SW 1/4 Section 23: NW 1/4 400.00 Gross Acres 12.50 Net Acres Am I not Part of this oil well?
Thanks Bruce
My guess would be that they had the offer in the pipeline and it got made even though they didn't need to lease. Don't worry, someone will catch it or they will try to lease you without paying the bonus as an insurance move.
according to the scout ticket data, its horizontal from section 23 into section 14, so your minerals will be held by production, unless it'd be a dry well.
NDIC File No: 27290 API No: 33-007-01816-00-00 County: BILLINGS
Well Type: ON CONFIDENTIAL STATUS
Location: SESW 23-141-98 Footages: 415 FSL 1980 FWL Latitude: 47.010675 Longitude: -103.066754
Current Operator: CONTINENTAL RESOURCES, INC.
Original Operator: CONTINENTAL RESOURCES, INC.
Current Well Name: VOLESKY 1-23H1
Original Well Name: VOLESKY 1-23H1
Elevation: 2645 GL
Field: UKRAINA
Spud Date(s): 2/6/2014
Bruce,
Our minerals are in Section 27-T141N-R98W, 5th Principle Meridian (which is a surveyor's term for the area surveyed using a fixed starting point), the meridian from which the land is surveyed.
What kind of terms did Continental offer you for a lease extension? Our land will be drilled next, hopefully, from Section 34 north into Section 27 but if it is not we would like to know what the lease is worth to them before they drill since their lease with us expires in October.
Please post or call me a t 303-229-4078 with the information if you so desire.
Thanks,
Jerry
Bruce Wernow said:
I am trying to figure that out also (why they are offering me a lease renewal). The well that I see on the map is #27290 Location: SESW 23-141-98 Volesky 1-23H1 UKRAINA My Mineral Rights are: Township: 141North Range: 98 West of the 5th P.M (What is 5th P.M.) Section 14: W 1/2 NE 1/4, SW 1/4 Section 23: NW 1/4 400.00 Gross Acres 12.50 Net Acres Am I not Part of this oil well?
Thanks Bruce
Want to thank you for the info. Very kind of you.
Bruce
Snues said:
according to the scout ticket data, its horizontal from section 23 into section 14, so your minerals will be held by production, unless it'd be a dry well.
NDIC File No: 27290 API No: 33-007-01816-00-00 County: BILLINGS
Well Type: ON CONFIDENTIAL STATUS
Location: SESW 23-141-98 Footages: 415 FSL 1980 FWL Latitude: 47.010675 Longitude: -103.066754
Current Operator: CONTINENTAL RESOURCES, INC.
Original Operator: CONTINENTAL RESOURCES, INC.
Current Well Name: VOLESKY 1-23H1
Original Well Name: VOLESKY 1-23H1
Elevation: 2645 GL
Field: UKRAINA
Spud Date(s): 2/6/2014
Bruce,
I just made this map of surface ownership showing the new well on our family minerals offsetting yours.
You can add your own well if you like.
Jerry Anderson
