Thanks Weed, I’ll call the clerk’s office today and let you know if I was able to get the information I need. You are right, Shale in Texas does not return my calls.
Sandra,
After your lease expires, send a registered letter the the address of the lessee on the lease informing the lessee that you consider the lease expired by its terms and ask for confirmation.
If Apache has put your lease into a drilled unit, you will get a response. From a practical matter, the Apache project in Daniels County has been abandoned for greener pastures. The Apache wells I have examined were very poor at best.
Thanks for the reply Gary, very informative. I live in Alberta so I know what you mean by “greener pastures”. I wonder if any other Companies will be looking to lease in Daniels after our lease has expired? I guess I can advertise after I know for sure that Apache is not renewing.
Lee, I examined applications, permits and drilling records for more than 8 wells drilled vertically to many formations and horizontally in the Bakken and 3 forks. Pipe was set in vertical wells to the Pierre Shale and drilled in a n area with considerable seismic data availability.
My study was don on 3 large parcels leased to Shale/Apache in 2/2014 when oil prices were worth of 90 dollars/barrel. production reported was too low at the time to payout the wells. Could have been a case of poor completions, geology, or high operating costs. Whatever, Apache didn’t make a project out of the area drilled. Don’t dispart. The oil is there but may not be economical for decades. Avoid diluting mineral rights in the future as the more you have to offer, the more interest will exist in future leasing. I also know of much better Apache controlled areas where profits are much much better. It makes sense that Apache put its cash into more prospective areas.
Hi Gary, I am interested in your comment,“the Apache wells I have examined were very poor at best”. Subjective conjecture or based on some source of real data? Your comment seemed to say you had looked at some inside data on the wells. Thank you . I have shale/apache lease that will expire( in my mind worthless or very low valued) in the future as well.
There are many producing formations in the County including many below the Bakken. However, in most cases, the oil migrated from its original area of deposition to structural traps in those formations. Structural traps are located by seismic prospecting Many times the structural traps are very small laterally and/or full of water. Industry can not risk millions in a horizontal well for such small, high risk reserves. The Bakken, on the other hand is huge in lateral extent and being largely composed of impervious shale, holds the oil in place and principally in the middle Bakken.
Before migration, sea floor deposits of critters must mature into hydrocarbons that takes time, pressure, and heat. Daniels county falls in an area where there may be incomplete maturation of the oil. Apache certainly tested the oil for it maturation.
Gary, the producing wells in the county have been in the Madison, Ratcliffe, and McGowan zone formations. These are above the Bakken from what I can figure. Are these formations not shale? Why don’t they utilize horizontal drilling in these formations?
Jed: Very encouraging answer on Two counts: I am a shareholder in APA and a rights owner in Daniels.
Without going into any great detail or opening myself up to a myriad of questions, the reason Apache pulled out of Daniels Cty is simple. The project was funded by the New Ventures group, which was, at the time, also providing capital for around 4-5 other projects both domestic and internationally. It was decided by the group (Via shareholders) that operations would focus more on the succeses happening in the Permian basin rather than continue exploring in Daniels County. Thus the reason we had Cruz drag the UTI rig all the way to Walker, TX at a cost of around $1.5MM. I only know this because I worked as a consultant for Apache within the New Ventures group during this time. If you were in Scoby you saw me. And trust me when I say I had really high hopes they would decide to stay. Apache knows what’s there and whether they or someone else decide to explore the area more extensively is purely economical. For what it’s worth there were a lot of managers within corporate taken by surprise with the change in plans. I’ve been involved in major projects from Brazil to Alaska to Africa with every major operator out there and it all basically boils down to what margin of return the shareholders receive from their investment.
Lee, rather than me try to explain something that someone else has explained in depth: http://www.mineralweb.com/library/oil-and-gas-terms/overriding-roya…
So what is an “Assignment of Overriding Royalty”. I see a number of the what I thought to be “Shale-apache” legal descriptions going from Orion Resources, Inc to Luniece Obst Schless. Don’t understand.
Thank you, I found that information and it was interesting and informative.
April 13/17. Does anyone on here know if there are any companies leasing in Daniels County, Montana? We had a lease with Apache which ends May 25th, 2017 and they are not renewing the lease.
Can a Landsman looking for leases in Daniels County please contact me. Our lease with Apache on the land near Scobey expired May 25/17. Thanks
Does anyone know if there is any changes in Daniels County it’s been pretty quiet. Was curious if there is any new companies exploring the area