Halcon has sold all leases as predicted

North Dakota Mineral Rights Bottineau County, ND
1

I spoke with Halcon lease department on Thursday 4/17/2014. Our family has 160 acres with a lease signed in 1985 that is paying .9 % and nothing for acres (Location Leonard field 24-163-79 Hultgren 1 and 2. I have not seen a check since January of 2014. I have been and owner since 2005. So far I started with GeoResources who quick claim deeded to G3 (partners), who quick claimed to Southern Bay, who quick claimed to Halcon who has now quick claimed to Energy Quest in Houston phone# 281-875-6200.

Halcon informed me that they sold everything to Energy Quest. I spoke with the county recorder and the Lease on file has not been updated since 1985 and since that time it has changed ownership 2 times in our family due to the deaths of my Grandparent who bequeathed it to my Dad who bequeathed it to Myself and my 11 year old daughter. What a mess!! I spoke with an attorny who wants the equivalent to 2 years of my portions of the royalties to see if there is anything to do.

What would you do?? I am trying to decide if this is even cost effective? I would love to hear the groups incited on whether I should pay an attorney $2500.00 just to look into it or just be happy with the crappy deal from 1985.

2

Trying to change the deal from 1985 is probably not going to be cost effective, even if you succeeded which is unlikely. Get far away from that lawyer, $2,500 to look into it so he can tell you there is a subsisting lease and nothing you can do is practically theft.

Before you hire a lawyer you need to know that there is something that can be righted. $2,500 can turn into $100,000 if there actually is something that can be righted and that is out of your pocket and may never be recovered. We have discussed before that your acres are depleted with the existing wells. Have any new wells been drilled since in other formations?

Do you know of any reason why the lease from 29 years ago would not be valid?

I have to ask if you really mean .9% as in 9/10ths of one percent?

3

Hi RW,

No new wells and I did make a typo 9/10 is correct. There is no reason that the lease is not valid. Thats for the advise. I will keep my $$ and wish you all good fortune on your wells.