Michael, we contacted Ty Wood and he got another company to give us a lease. Baker Hughes shows only 2 drilling rigs in Mitchell county. Are they fracking the 4 that have dropped off? Any thoughts?
Michael again…that’s supposed to be Wade Stevens…sorry
Understand there was an article in the Colorado Record about the number do drilling permits in Mitchell County. Those of those that do not have access to the paper could you please report
Carol, it said Devon has 3600 in Cline. Did not say how many in Mitchell County.
i think the paper was wrong. they only have 4 outstanding drilling permits filed on the rrc website. devon has room for that many wells with the acreage they have leased but it will probably take the 6 yo 8 years to drill that many.
Michael Here again…like a few months ago, I am unable to get Wad Stevens with LMD energy to respond to email. He wanted to lease rights from me and my family and I have provided all needed paperwork and have not heard a peep in a very long time. Does anyone deal with him or LMD and have any suggestions?
@j richardson - from what I can tell from the little contact I have had with LMD (Wade) - my family only has a 1/32 mineral right share of 320 acres…so basically a 100% share of 10 acres and the landowners have already leased their rights and somehow we were not contacted until very late in the game. Would you mind telling me who y our LMD contact is? I am really kind of tired of the whole mess but I am sure that if they are drilling it is not completely leagal since they have not gotten all the paperwork back from my siblings.
Michael,From the description of your holdings, I am the surface owner and partial mineral rights owner directly east and north of your property. Sections 18 and 20. I leased to LMD in Oct, last year so I can`t understand their not wanting your property to firm up their holdings.
FYI, Loredo has repermitted their Treadaway well from a fee vertical well to a horizontal unit well with the horizonal bore going south from sec 30 into sec 31. It will be interesting to see how that turns out. That well is 4 to 5 miles east of us.
Michael,
My dealings were with a man named Kearly who was representing Legacy oil which turned out to be LMD which turned out to be Loredo Petroleum. It`s hard to tell which leasehound is representing what company. At the present time, the closest activity is the Treadaway well 4 miles to the east.
From what I understand, the companies do not need 100% signings. They do need surface owner and or majority owner. Lesser owners have no say in bonuses and %'s of minerals. The minority owners can be signed at any point in process. We know we have 3 minority leases and majority and surface owners have signed.
The treadaway well is (by road} 3 miles North, 1 mile East and 1/2 mile South of Loraine. sec 30, block 24, T&P survey.
If you own the minerals and not just a royalty you have all power over your minerals. You can negotiate just like a majority owner. If they have drilled your minerals and have no lease with you they will come to you if they can find you. You can sign a lease or move toward being a nonparticipating working interest (after well is paid for and cost of production you get 100% production for your net interest). If the wells are good this is possibly the best way to go but you also get no bonus money. If the surface owner does not have any of the mineral rights unless it was specified no surface down the road the surface owner has very little to say about what happens with drilling on his property. ( mineral owners large are small have the right to get to their minerals).
The posts below are correct, generally. They don’t have to have 100% of the mineral owners signed up. If you don’t sign and they drill, you have a carried interest and get paid once the company recoups its development costs.
Where istreadaway property?
Which company is paying $750 and 25%?
$750/acre and 25%, give or take, but fluctuates depending on where you are located.
What are the latest lease bonus, royalty, and offers to buy mineral rights in Mitchell County right now?
When you say “depending on where you are located”, where are the most desirable locations?
Sorry, have to defer because we are still in negotiations. I will post the name once we get a deal done.
Generally better the farther west you are in the county.
There are many educated people on this board with regards to the drilling process and what “may” happen. I have read many positive things about the Cline Shale and Mitchell County in general. Speculation is that it “could” be bigger than the Eagle Ford Shale. “IF” that were to happen, how long do you think it would take to start really drilling the Mitchell County area like they are in other areas? Are we talking about a year from now, 3 years, 5+ years? What are your thoughts and opinions?