Hello - I have shared mineral rights in Converse County, Section 32-34N-75W, and would like to find out something about it! This is an inherited ownership, and I would like to know if it has any significant worth. We leased it to Chesapeake in 2010 for 5 years, and have heard nothing since.
Your minerals are right on the edge of the old Glenrock Oil Field, which depleted quite a few years ago. There has been some efforts over the last 10 years or so to put together a CO2 flood and reestablish production. Maybe someone will eventually succeed in getting that done.
As far as horizontal shale potential, you are unfortunately quite a distance from any activity, and I wouldn’t expect anything to materialize there. I think the prevailing geologic interpretation is that you are located outside of the prime area for shale development.
Good luck.
I have just received an offer to buy my mineral rights in Converse county, from Aegis. No dollar amount. Apparently we leased it to Chesapeake/Fourpoint/Casillas (good grief!) until 2020. Don’t really know what that means. Help please!
If you leased your mineral rights to Chesapeake through 2020, then they have the exclusive right to drill on your property until then. If they establish production, then you would receive a percentage of the proceeds from any oil and gas that they produce. That is your royalty percentage.
The 2020 date is their deadline for establishing production, which they haven’t done yet. If hey do establish production before the deadline, then the lease is automatically extended for as long as production continues. If they don’t meet the deadline, then the minerals are yours again and you can lease to another Company.
You can still sell your minerals even if they are leased. It just means that whoever you sell them to will be subject to the lease with Chesapeake just like you are now.
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Thank you for the information Steve.