I own 100 acres of raw land.
There is a big energy company that drills for oil a half mile away with I believe 6-16 oil rigs (they are not drilling on the same reserves as I).
I have had another oil company offer me 12% to land lease and I denied their offer.
I have a full geological study that looks very promising and last week I had two geologists satellite scan my property to pin point where the oil is and to determine whether the oil had a low or high frequency and it was very promising. The frequency was higher than the company stated above's oil reserves. ( I do not know much about this satellite, but I have seen its results and it is quite incredible and apparently rare). I also will be receiving those tests to add on to the geological report.
I am looking for a 50/50 partner that is experienced and knowledgeable in all aspects, from start to finish.
If you have any hints or tips let me know they are well appreciated
Are you looking to drill it straight up? You might post some more info. about location etc.
I noticed some players are coming back in. The consensus at the moment is that oil has bottomed. For example, last week the Permain Basin* lost only one rig. Players like EOG said they were going to start up again.
There is a lot of money on the sidelines. It's just a matter of time before it is put to work. In general, only a fool would try to predict oil prices in the long term. Simply because there are too many incalculables that they are not privy to. An example? Politics in the Middle East.
Good luck in finding an investor/partner. As it stands now, however, you haven't provided enough information to attract anyone's interest.
*The Permian Basin is situated in west Texas and southeastern New Mexico. Over the last few years and beyond, it has been the most active of areas for drilling in the United States.
I appreciate your time, thank you. I am meeting with around 1 or 2 investors, but I want more ducks lined up. This land is in Missouri and the oil is quite shallow (aprox.1600ft). I’m interested in what you have to say when it comes to me presenting this opportunity. What should I provide? Etc.
That is shallow. Should be very cheap to extract. I would not take a knife to a gunfight. If at all possible, see if a geologist can attend. If not, bring what you have and tell the investors if you can not provide any answers to questions they may have, that you will try to get them within 48-72 hours.
What’s your experience with oil? Is it a promising path? What are things that I should watch out for and take care of as a newbie. Again, I appreciate your time.
What’s your experience with oil? Is it a promising path? What are things that I should watch out for and take care of as a newbie. Again, I appreciate your time.
I'm in the upstream end of it, not the production end. In general, the upstream end consists of determining the mineral ownership and leasing the land so that a well might be drilled. I have been known to take the job seriously whether I got paid or not. About two weeks ago, a lady came on this site and asked a question about an oil and gas interest in Culberson County, Texas. I was not at all satisfied with the types of replies she was getting on this site. I billed my client for one-half a day on a Friday, and then got on Interstate 20 and drove several hours to Van Horn to do a stand-up search of her mineral interest. I didn't have to do that, but I knew that the answers she was getting were not up to my personal standards. I posted my findings, and the lady (Cyndy) thanked me profusely.
As to your question, I am probably not the best person to take you where you need to be. However, there probably are operators and others who are more familiar with the whole package. Getting it drilled etc., finding investors, costs etc..
You have posted your email. Hopefully, you will hear from someone more qualified than myself.
Good luck.
Why are you looking for a partner. If it is advice and mentoring you require there are many people on this forum that will be very generous with advice. Find a couple that you trust and run things like offers etc by them
Kirk Bloomquist said:
Why are you looking for a partner. If it is advice and mentoring you require there are many people on this forum that will be very generous with advice. Find a couple that you trust and run things like offers etc by them
I’m in need of a knowledgeable in the oil and gas // capital investor
Are your minerals leased?
Kirk Bloomquist said:
Are your minerals leased?
No, I had an offer, as stated above, but I denied it. I own my mineral rights 100%
Sorry, I read your first post and see you are unleased. Did this company offer you bonus money to lease as well as 12%
No worries brother. They did, but we had a slight idea of how much oil is down their and so there was no way we were going to give them 88%. They wanted to start out with seven wells off the bat.
Most Missouri oil is heavy oil, which is difficult to extract. Many attempts have been made in Southwest Missouri along the Kansas border, around the towns of Liberal and Nevada. To my knowledge, the most promising areas in Missouri are just south of Kansas City, along the Kansas border near Linn and Miami County Kansas. Those wells should be quite shallow, 50-300ft.
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
Steve Durrett said:
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
it is actually very new and very real. It's satellite imaging and I went with them as they did the test. In fact their are many companies offering satellite geo scanning for oil and gas exploration.
Dear Mr. Ihmoud,
Please do not be offended if a practicing engineer takes issue with a real estate guy from Chicago who owns land in Missouri concerning his being a proponent of this technique. Just to let you know, this has been around for at least several years. Everybody has been looking for a black box that really shows oil deposits, buried treasure and ship wrecks at 19,000 feet. In the industry, we call those doodlebuggers and fall into the category of divining rods.
If you are looking to sell to investors, better keep your presentations to the non-sophisticated investors.
Buddy Cotten
Steve Durrett said:
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
Buddy Cotten said:
Dear Mr. Ihmoud,
Please do not be offended if a practicing engineer takes issue with a real estate guy from Chicago who owns land in Missouri concerning his being a proponent of this technique. Just to let you know, this has been around for at least several years. Everybody has been looking for a black box that really shows oil de... In the industry, we call those doodlebuggers and fall into the category of divining rods.
If you are looking to sell to investors, better keep your presentations to the non-sophisticated investors.
Buddy Cotten
Mineral Manager
Steve Durrett said:
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
Thank you for approaching me in quite a rude manner Buddy.
Steve Durrett my intention was not to be rude towards you in any way and if I have negatively affected you then please forgive me. This is a new venture to me and I am in the process of learning.
Back to you Buddy. I’d appreciate that you give me respect just like I would towards you. Being pretentious is quite a foul thing to carry within you. I suggest we stay professional and have respect for each other. I’m a bit surprised I have to tell a middle-aged man this.
For anybody other than Buddy I want to thank you for your time and for enlightening me on oil and gas and I am still open to learn more if you have anything else to add.
Many regards, Jawad Ihmoud
Oil was discovered in Missouri shortly after the Civil War when water wells were being drilled near Kansas City. Missouri has potentionally large quantities of "unconventional" energy that include coalbed methane, oil sand and oil shale. Although Missouri has limited supplies of traditional hydrocarbons, relatively large deposits of "heavy oil" exist that are of increasing interest to producers. New technologies and efficient, environmentally responsible oil production strengthen Missouri's future and result in increased economic benefit to the state through jobs and revenue.
Hang in there Jawad. Some of the most successful people think outside of the box, and defy conventional wisdom. Good luck to you.
Jawad Ihmoud said:
Buddy Cotten said:
Dear Mr. Ihmoud,
Please do not be offended if a practicing engineer takes issue with a real estate guy from Chicago who owns land in Missouri concerning his being a proponent of this technique. Just to let you know, this has been around for at least several years. Everybody has been looking for a black box that really shows oil de... In the industry, we call those doodlebuggers and fall into the category of divining rods.
If you are looking to sell to investors, better keep your presentations to the non-sophisticated investors.
Buddy Cotten
Mineral Manager
Steve Durrett said:
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
Thank you for approaching me in quite a rude manner Buddy.
Steve Durrett my intention was not to be rude towards you in any way and if I have negatively affected you then please forgive me. This is a new venture to me and I am in the process of learning.
Back to you Buddy. I'd appreciate that you give me respect just like I would towards you. Being pretentious is quite a foul thing to carry within you. I suggest we stay professional and have respect for each other. I'm a bit surprised I have to tell a middle-aged man this.
For anybody other than Buddy I want to thank you for your time and for enlightening me on oil and gas and I am still open to learn more if you have anything else to add.
Many regards, Jawad Ihmoud
Dave Quincy said:
Oil was discovered in Missouri shortly after the Civil War when water wells were being drilled near Kansas City. Missouri has potentionally large quantities of "unconventional" energy that include coalbed methane, oil sand and oil shale. Although Missouri has limited supplies of traditional hydrocarbons, relatively large deposits of "heavy oil" exist that are of increasing interest to producers. New technologies and efficient, environmentally responsible oil production strengthen Missouri's future and result in increased economic benefit to the state through jobs and revenue.
Hang in there Jawad. Some of the most successful people think outside of the box, and defy conventional wisdom. Good luck to you.
Jawad Ihmoud said:
Buddy Cotten said:
Dear Mr. Ihmoud,
Please do not be offended if a practicing engineer takes issue with a real estate guy from Chicago who owns land in Missouri concerning his being a proponent of this technique. Just to let you know, this has been around for at least several years. Everybody has been looking for a black box that really shows oil de... In the industry, we call those doodlebuggers and fall into the category of divining rods.
If you are looking to sell to investors, better keep your presentations to the non-sophisticated investors.
Buddy Cotten
Mineral Manager
Steve Durrett said:
I am an engineer and I have been in the drilling and producing business for 36 years (quite successfully, I might add) and I have never heard of "satellite frequencies", high, low, or otherwise. Perhaps you are misunderstanding what they are telling you.
There is no magic "yes/no" oil detector. Geological reports will speak of stratigraphy, structure, source, timing and migration path. Only when all of these are favorable will an oil field be created.
There is a good reason why most landowners are better off leasing and not participating - it is a complicated, highly technical, very risky proposition. However if you have sufficient resources to carry your 50% of the partnership I guess its a free country. Good luck - just don't bet the rent money.
Thank you for approaching me in quite a rude manner Buddy.
Steve Durrett my intention was not to be rude towards you in any way and if I have negatively affected you then please forgive me. This is a new venture to me and I am in the process of learning.
Back to you Buddy. I'd appreciate that you give me respect just like I would towards you. Being pretentious is quite a foul thing to carry within you. I suggest we stay professional and have respect for each other. I'm a bit surprised I have to tell a middle-aged man this.
For anybody other than Buddy I want to thank you for your time and for enlightening me on oil and gas and I am still open to learn more if you have anything else to add.
Many regards, Jawad Ihmoud
That was very interesting to know. I just recently found out that my oil is crude oil is that considered "heavy oil"? And are all oil companies adopting this method of drilling for heavy oil indicating it would be cheaper to pump? Also, thank you for you last remark. It is a coincidence since I am currently reading, "Made In America" In which Sam Walton created Wal-mart by breaking the barriers of normal.