I have mineral rights on 6 acres i realize its small but every acre counts, I would like to hear from all who have mineral rights in this county how is production going and any and all thoughts and input on the future I have had my mineral rights for 30 years the 1st years i remember as a young girl getting cks every 3 months that went on for approx 10 years and than i think they deemed it a dry hole so i forgot about them until recently when i was contacted with a lease offer i took the offer i believe it to be fair thanks again everyone my township is 21 range 59 section 26 I do realize there is wells that are producing near by.
I really believe Richland County is heating up for 2012. Lots of permits being issued and actual drilling. It just all takes time and is a practice of patience! Mine is sure being tested!
Theresa,
I signed with Continental but they have been held up over set back issues in court. I am beginning to study in earnest, I don't know enough yet.
Will- I believe i signed with Slawson Exploration Inc. My area recently as of Jan 2012 began producing the landman sent me an offer of 3,000 to sell it to him i am declining, this is an inheritance from my father who passed when i was young so its something that as i get older means alot to me i know this site is a god send and with this site i have learned alot through the kindness of other more knowledgeable individuals the only way i was able to learn and understand some what was through this site keep studying dont give up i have spent many a late night after kids were in bed to try to understand or find certain info alot of times it just was to over my head I wish you the best! I feel no matter how large or small a person's mineral acres are we are the bread and butter of these multi-million dollar oil companies i understand they put up the finances to start the drilling process but where the heck would they be with out the mineral owners good luck and god bless this nation!
Greetings, Theresa, i received notice of another temp spacing section. 26n-57e. So that means all the small areas I have are temp spaced. Only one well - still waiting. So this area is definetly seeing action. At least on paper. Still practicing patience
My family has rights in Richland as well and are considering an offer now. Its hard to know what a fair price and royalty are.
If you feel comfortable posting the offer, you may idea if the offer is fair. I was offered 3 year, 18% and $500 an acre. Still holding off. Phil, lots of folks here will give good honest help.
Greetings to you Joanne i to believe things will be heating up I praise you for practicing patience when it comes to this i just seem to have very little but good things go to those who wait so they say good chatting with you hope thin go good for ya and hear good news from you soon.
Theresa
Joanne G said:
Greetings, Theresa, i received notice of another temp spacing section. 26n-57e. So that means all the small areas I have are temp spaced. Only one well -
still waiting. So this area is definetly seeing action. At least on paper. Still practicing patience
Thanks for sharing Joanne. We have been offered 16.66% at $100 per acre for 5 years. From what I am reading, that sounds pretty low.
Part of the decision on waiting vs moving forward should also include the time it takes to drill, etc. Assuming the company that leases your mineral rights moves forward with drilling and is successful in generating a producing well, then you collect royalties, until they pull out for one reason or another, hopefully 20-30 years later. If you wait, then you could loose money now, because they can drill sooner, but might end up settling for less in the agreement. It's a gamble on if the prices and value of domestic oil will continue to rise, and your specific geographic area continue to produce. Also too, the state of our country is ever changing, and we don't know how long the current expansion will be acceptable. Alas, lots of things to consider, and all of it a gamble.
Phil- What is your township and range? That plays a big role, I understand. We plan to make a counter offer of 20% royalty based on the information I have learned here. This forum has really
helped me understand alot of things. I'd take less per acre bonus and more royalty as I think in the long run I would recoup more than the bonus when or if they would drill and find oil. If you get a well that is where a long term relationship comes into play with whatever oil company you sign with. You are right, it is a gamble. I think this oil play should be around a few years barring any drastic changes in our nations feeling of drilling for local oil.
Phil 1611 said:
Thanks for sharing Joanne. We have been offered 16.66% at $100 per acre for 5 years. From what I am reading, that sounds pretty low.
Part of the decision on waiting vs moving forward should also include the time it takes to drill, etc. Assuming the company that leases your mineral rights moves forward with drilling and is successful in generating a producing well, then you collect royalties, until they pull out for one reason or another, hopefully 20-30 years later. If you wait, then you could loose money now, because they can drill sooner, but might end up settling for less in the agreement. It's a gamble on if the prices and value of domestic oil will continue to rise, and your specific geographic area continue to produce. Also too, the state of our country is ever changing, and we don't know how long the current expansion will be acceptable. Alas, lots of things to consider, and all of it a gamble.
Thanks for any suggestions, and recommendations. I am new to this, and still have a lot to learn. I want to get a fair but good deal for my siblings, but I also am not much of a gambler or negotiator.
Our rights are south of Poplar T26N-R51E Sections 7, 8, 16, 17, 18
This forum as well as http://www.eser.org/ have been two sites that have helped me understand things a lot.
Phil- Snoop around at this site. It is the Montana oil and gas site. It has a wealth of information on it. http://bogc.dnrc.mt.gov/ It will tell you what permits have been issued, production on wells and a ton of other information.
I did put in your township and range info and you re right, there hasn't been much activity. Be patient and take the time to learn about the asset you have.
At the annual/weekly review tab you see what permits have been issued on a weekly basis. the on-line data tab will let you put in specific information pertaining to area to see what is happening or the history of the area.
I hold mineral rights in Richland Co. and currently I am receiving royalties for gas and oil on 3 wells. I also belong to the Northeast Montana Land and Mineral Owners Association as I live out of state. They meet quarterly and send out their meeting reports that help me keep in touch with what's going on in the various areas. You might want to do the same thing. It costs $30 per year (which is tax deductible against any income you have off the minerals you own) and you can see what the prevailing rates for leases are. I just received the most recent report which covered the May 22, 2012 meeting. The prevailing leasing prices as reported by members for West Richland County were $400 per acre, 4 year lease & 19% royalty; $175 per acre, 5 year lease & 20% royalty in the Richey area; and $450 per acre with a $600 option in the Scobey area. They also sent some helpful hints about lease considerations, the last which says "Unless you are very comfortable and experienced negotiating your own lease, our advice is to get help from an experience friend, relative, neighbor or lease expert." I wish I had done so!
If you are interested in joining, contact Jenny Engelke, Secretary, 4545 Road 1011, Froid, MT 59226 (406) 963-2246