Steve,
yes, the website - http://wogccms.state.wy.us/
I’m not up to date on Converse to answer your other questions about competitors at this point; give me a week. You own 320 net acres? That’s huge.
Thanks Bart, that was very helpful
Yes 320… but that area of converse wheretge Old railroad rightaway is by the interstate and 18? Had always been just outside of the area of activity
HI Bart,
Other than Chesapeake what other reputable operators in Converse County would you recommend requesting offers from? Looks to me like Wave, Devon, Wold and EOG resources are the main ones there. Thanks again for your advice. Jim Larson
You should also contact Anschutz Exploration and Anadarko as well, as they may have an interest. Get on the state O&G site and see who has been permitting "lately" around your area. First to permit, gets to be the operator is how I've been told it goes, so there is a lot of activity in that regard. A permit does NOT always mean a well is going to be drilled.
Thanks Mr. Davis for the additional info.
New to this forum...my wife inherited 14.41 mineral acres in Converse county WY from her mother...location is Sec 9, T33N, R75W. I see that there is lot of activity on Sections all around this parcel but this particular parce3l is virgin territory and has never had a well...the Geo report said there is differently oil in this location. Just wondering what the current going rate is...someone mentioned to me that a producer might offer 15,000 total bonus (not per acre) and a royalty as the wellhead at 19%. After reading many many postings about this issue, this seems ridiculous to me and quit frankly insulting. But, as we are rookies in this business, I am looking to all you with experience with some much needed guidance. I do realize since there has never been a well on this property, it might be some risk for someone to offer a lease as we are trying to figure out why this property owned by my wife's family for a over 100 years, has never had offers when the Geo said there is oil down there....Any idea's or thoughts are welcomed
Joe
OPs sorry about the typo..I meant to say my wife inherited 141.41 mineral acres...correction from my original message
Joe
Joseph Oddo,
Not sure of what the current bonus rate is but I can't believe any company offer a low-ball number of $200 per mineral acre in Converse County, Wy. Now in other areas of the country, that price might be okay but not there. Also, that price might be entertained if the price of oil was in the high to mid-$20's per barrel but as of this morning, the oil prices for WTI {West Texas Intermediate} is $56.91 and Brent Crude is $63.57 with the prices expected to climb over the next several months to several years due to world economic stability minus very short-term hiccups such as the Crown-Princess of Saudi arresting all those in his Kingdom who are a threat which should cause a price increase over the next couple of months.
With that info, I would seriously push for $1500 Bonus per net mineral acre. In-fact if the company I am currently under lease with does not exercise their 2 year extension, I will be looking to release my minerals next April and will be starting the opening offer at $2500 {GET THEIR ATTENTION!} so that we have a little room for negotiation. I have read that several companies have made starting offers at $1500 per acre recently.
As for a lease term, I normally sign a 3 year lease with a 2 year extension that pays the same bonus for the 2 year extension and the initial lease. The reasoning behind a 3 year lease is for them to have to actually drill within the first 3 years so they don't have to pay for the extension or release. As for the actual royalty, most companies start at 5/32 {15.625%} to 3/16 {18.755} which is on the low side. I would never accept less than 3/16. Personally, my starting counter offer is 3/10 {30%} which normally makes them choke and cough which is my intent. {GET THEIR ATTENTION!} I am actually wanting 1/4 {25%} GROSS AT THE WELL HEAD but chances this day in time are slim at best. In the current market, if you can get 7/32 {21.875} to 1/5 {20%} GROSS AT THE WELL HEAD, you are getting a fairly good deal.
When looking at Mineral Properties, most people only think about the Oil & Gas Royalties but in Wyoming I protect all my mineral assets including reserving all rights to my Uranium, Coal, Coal Methane Gas & Bentonite Rights. These minerals can be worth a small fortune and if you don't reserve them when leasing then the oil company has full control of them when they lease and so often the royalty owner never sees a penny of the proceeds if they are mined/drilled.
Several other issues that most leases do not entitle the mineral owner are the condensate, distillate and other liquid hydrocarbons. Over the lifetime of a well, these funds can also produce another small fortune and normally never shared with the mineral owner. When I lease I demand royalties "gross at the well head for all oil & gas and all condensate, distillate and other liquid hydrocarbons". Most lease are NET where the mineral owner is responsible for such cost as condensing, chemical for treating and the highest cost of transportation of the oil, gas, and other hydrocarbons byproducts. GROSS AT THE WELLHEAD means you are paid for every drop produced and before any operating expenses along with being paid for all byproducts.
I also insist on the Pugh Clause and will not sign a lease with the Mother Hubbard clause.
My email address is [email protected] if you would like to discuss more as far as lease-hounds.
I hope this is a little more information that will help you in the future.
Have a blessed day,
Bill
We are sitting with 320 acres in Converse County, T 37, R 76, sections 2,3 and 10. Companies have kept it continually leased for many years since being allowed to conduct seismic tests, but no one has approached us, the most current lease expired August 13, 2017. SM Energy has a large unit they are attempting North of us and Wold has a large unit they are attempting South of us. Does anyone know of any other companies working the area that might want fee land surrounded by blm land?
Has anyone on here dealt with Wold Energy? If so, could you share the bonus range and royalty range they have been paying in Converse County,....it would be very helpful and appreciated.
I own mineral rights in the Frontier Formation in Converse County. There currently are no wells in the area of my mineral rights. I recently received and offer to lease and am trying to do some research to find out the potential in that area. Does anyone have any information on drilling activity in the Frontier Formation? Thanks
Hello All, I have a situation which Chesapeake has requested repayment of royalties payments. They are requesting repayment of royalty payments due to operating expenses. Have you had experience with this type of request for repayment? Thanks
I guess I haven't been following the news like I should. I just saw that Northwoods bought SM Energy's Powder River Basin acreage, .112,000 acres for $500 million.
Anybody have any insight as to what this might mean for us?
Jeff:
It would help to understand where your minerals are located.
To get up to date, just search Google for any / all of the oil company names and the words Turner formation. That should tell you a lot about what is going on. Many companies drilling in a number of different formations are getting good results and are telling the public a little about the results. The Turner is a hot formation now. But its all about location and which oil companies are aggressive and when will they drill. Location is needed to answer more specifically.
Also, have you looked at the Wyoming Oil and Gas web site. If not. Click on Data on the entry menu, then Wells and run a search for your Township and Range location. This will help you see the current activity close to you. Run a nine section search.
Good Luck!
John Linden
446.730194 Net Mineral Acres Available For Lease in Converse County, Wyoming beginning 05/16/2018
On May 15, 2018 my lease will expire and some of my minerals {89.34604 net mineral acres} will be available for lease. I also have 4 sisters who will be very interested in leasing their equal shares of minerals which would total 446.730194 Net Mineral Acres out of 4170.545 Gross Mineral Acres. There is also the possibility of another 335.04765 Net Mineral Acres owned by the Family in the same tracts listed below.
Anyone or company interested in leasing my/our minerals, please contact me via my personal messaging or at [email protected] .
Thanks,
Bill Osborn
Township 36 North, Range 68 West, 6th P.M.
Section 1: Lots 1, 2, 3, & 4;
Section 2: Lots 1& 2; SW¼NE¼; SE¼NW¼; W½ SW¼; NE¼SW¼;
Section 3: N½S½
Section 12: N½N½; S½NE¼; SE¼NW¼; NE¼SW¼;
Township 37 North, Range 67 West, 6th P.M.
Section 5: SE¼NW¼; NE¼SW¼; NW¼SE¼;
Section 21: SW¼SE¼; SE¼SW¼;
Section 28: N½NE¼; N½NW¼;
Township 37 North, Range 68 West, 6th P.M.
Section 2: SW¼; W½SE¼;
Section 3: S½;
Section 4: Lot 4; SW¼NW¼; N½S½;
Section 5: Lots 1, 2, 3 & 4; S½N½; SW¼; N½SE¼;
Section 6: NE¼SE¼;
Section 10: NE¼NW¼ ;N½NE¼;
Section 11: N½NW¼ ; W½NE¼ ; SE¼NE¼; NE¼SE¼; S½S½;
Section 12: SW¼NW¼ ; N½S½; S½SW¼; SW¼SE¼;
Section 13: NW¼NW¼;
Section 14: NE¼NE¼;
Section 35: N½; SE¼SE¼;
Township 37 North, Range 69 West, 6th P.M.
Section 2: Lots 1, 2, & 4; S½N½; W½SW¼;
Township 38 North, Range 68 West, 6th P.M.
Section 32: SE¼SW¼;
Township 38 North, Range 69 West, 6th P.M.
Section 25: W½NW¼;
Section 26: NE¼; SW¼; N½SE¼;
Section 27: N½; NE¼SW¼; NW¼SE¼; E½SE¼;
Section 35: S½SW¼;
The Gross Mineral Acreage 4170.545 acres.
The Personal Net Mineral Acreage 89.34604 acres
and Family Net Mineral Acreage of 446.730194