Oil & gas discussion group for those interested in Sheridan County, MT. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
WE are getting calls and lease proposals from folks, all of the sudden, last 2/3 weeks in Sheridan co.
Any feedback?? What is up in the area ?
Dave
Dave:
Sheridan County has been showing some activity recently (permits; temp. spacing). I have minerals in T31;R59 and was recently contacted by Marathon via Federal Express, that our acreage has been temp. spaced for a Bakken well. When contacted, Marathon informed me that they would be drilling several wells in that area either the last quarter of this year or early next year. I think as time goes on, this County will see an increase in drilling and also Roosevelt County will also do the same. Currently, the majoity of the rigs are busy with leases in ND which has been leased at a much higher bonus. Montana will most likely see a migration of some of these rigs over the next few months.
Mary:
I believe you posted on the wrong board. Your minerals are located in North Dakota, not sure what county, but if you will click on county groups at the top and scroll down to North Dakota, you can locate the county that your minerals are in and post there.
Charles, Yes, you are correct. I made a big error. The location of our mineral rights… T 31N R 58E. We leased to Marathon 8/2010. Would certainly appreciate any news updates when available. Mary
Mary:
Will update you when I hear any news. You do the same.
Hi, Everyone,
My family also has mineral rights in Sheridan County, T31N R58E, and I look forward to hearing what's the latest with Marathon's plans.
Bertha
Bertha:
Your right next door to us as our mineral rights are located in T31N;R59E;Section 31. In regards to Marathon, we recieved a letter from them in late last year, informing us that our area was temp. spaced. I contacted their office and was told that their plans were to drill late this year or early next year. I am unsure how many rigs this company utilizes but I feel like they will pull one or two out of ND to test this area. Let's hope they get some fantasic results. Be sure and post any news when you learn anything about the situation.
Hi, Everyone, I have some exciting news for those of us with mineral rights in Sheridan county. There are 4 rigs going up very shortly on T31N R58. Sections 13 & 24......2 & 11. Section 23 may possibly be next. It is my understanding that Marathon is the first to drill this area of The Bakken. Look forward to reading any updates! Mary
Mary:
Thanks for this information on Marathon. If they are utilizing 4 rigs in this area, then they are serious on drilling. My minerals are located in the next section just to the East so maybe they will work their way to me eventually. I am very interested on what amount of production this area will provide since it is virtually untapped for the Bakken.
I’m interested in knowing if anyone is being approached by actual companies or only speculators and what is being offered. We’ve been made an offer but I’m not sure who is really behind it. We are over in T34 R56
Duke:
You didn't say who the offer was from so it's hard to answer your question. Was the offer to lease or buy the mineral acreage. The last two or three contacts I recieved was from companies wanting to buy my minerals. In reference to your question, I have not been contacted recently in regards to Sheridan County but our lease is not expiring until 2015.
The offer was to lease, but I would rather not post names right now, The reason I suspect fronts is because it is an LLC I never heard of, which when I checked the state’s business registrations it came back as having been formed by an attorney with an address the same as the law firm used as registered address and is the LLC’s address on the proposed lease. I am less trustful of dealing with front and would like to know if all business is being conducted this way to prevent knowledge from leaking out. I am looking for real pricing not undercut speculators. The other thing that bothers me is that the lessee takes under the terms takes no responsibility once the lease is assigned.
I got an offer to lease for T33 R55 Section 18W for $200 an acre for 3 years with a 2 year extention at an additional $100 an acre. It's family land and I believe members in Montana negotiated the deal. I'd appreciate any information on drilling in the area. We also have land in T33 R54 but no one has approached us about it. Can anyone give me information on where I can find maps showing townships and ranges for Sheridan County?
Thank,
Barb
Barbara:
The only thing that I have heard lately in regards to Sheridan County, is that several temp. spacing units have been approved and I have learned that Marathon will be drilling later this year near the Roosevelt County border. You can obtain maps showing townships/ranges for Sheridan County on the Montana Oil and Gas website but I would call their office to get instructions on how to get use their website. I personally think that up to 4 bakken wells will be drilled in the Southern section of this county and close attention will be given to their production figures which will serve as an indication if additional wells will be drilled at this time.
Duke:
It sounds like an attorney is involved in a brokerage company. This would not deter me in lease negotions as long as the bonus/acre; lease terms and most important % royalty is in my favor. There are numerous brokerage firms doing business for various oil companies and the only thing you will be in the dark about, is what oil company ends up with your lease. Again, if the lease terms are to your liking, I'd do business with them but DON"T take a bank draft, get the real check.
That is one of my concerns also as it is a 45 day order, and with the lease saying they paid in advance, so I am more likely to require that one or the other has to change. The offer is OK,except for provisions that need to be changed for the surface owner to be protected and us not to be liable to the surface owner (indemnification) I also didn’t like the low amount paid for shut in wells, and I do think that the offer might be low for what is going on right now.
I forgot to mention the lease can with 18% royalties.
Duke:
Just demand a check and negotiate the lease on your terms. If this company is not in favor of this, shop around as there are numerous companies which would possibly be interested in leasing. Just remember, these are yours, so lease them on your terms.
Barbara:
I would not get in a hurry to close a deal on the lease. I would up the deal to $500/acre with 20% royalty. These company reps have a ceiling bonus amount that they will pay as well as % royalty. If it were me, I would play the game with them as you will eventually find out the most their willing to pay. As I stated earlier, insist on a check and not a draft in order to eleminate getting "cold drafted". Good luck!!