Like I stated, I’m only asking people’s opinion…not facts. There is a difference.
Cara, my brothers and I have some mineral rights in 7N 66W. We are presently under lease with Great Western. There is some action going on in sections in the southern part of the Township.
Hanna PM me and i can email you a excel spreadsheet that will calculate this for you.
Since Oil is $100 per barrel and will stay around this area for a very long time many operators will drill with production estimates as low as 30 bopd. A vertical well completed cost around $800k to $1m but a horizontal cost $5m to $6m and they want 500 per day production and for a 3 year payback. Conoco just bid $147m for 22,058 Arapahoe Lowry acres and that sets a state lease record. So what does that tell you about oil minerals south of Weld?
How many barrels of oil per day does a well need to produce be considered a good enough producing well to be cost effective for an oil company?
In 2009 my family was approached by Exterra to lease their mineral rights to EOg. With lots of family drama, they decided to go with Exterra, all except me. Fast forward to now and Exterra contacted me again to propose a lease but this time with Noble Oil. I did lots of research and Noble is one of the big dogs in the area. The landman is playing hard ball and I am inclined to not sign. I am a real estate professional in another state and I wanted an escrow established. If I was going to sign a paper, I want to see the money. they want the paperwork and I am to trust them and wait up to 90 days. I offered to pay the escrow costs. No deal, so they upped the offer, but still will not do an escrow. I walked the last time, should I walk again. It was never about the money, but the way it was handled. My family, settled for so littled and I have been offered 10 times what they got. Need advice. Paperwork is being sent
How many contiguous acres are involved in the lease?
Also, you mentioned 10 times original offer, in my estimation dollar per acre is not near as important as % of royalty unless its railroad land. per acre is one time, % royalty is for a long time and if your in a good area per acre is peanuts.
Regina, There Is a lot of title work that needs to be done and verification that you have rights to sell before EOG or Noble can write a check. Do you how big a dog Noble is? those boys don’t mess around and if they want to lease they are going to drill. If you play to hard a ball then your going to be forced pooled.
Seems to em they pool you whether you play hard ball or not. My family has half of 120 acres (that sounds weird I know, but that is the way it is). They put a well on what they deem to be a 40 acre piece of our right and they pulled 40 acres into the well from an adjoining property. Also, apparently Noble has been doing some restructuring, or so we were told by our landman and that is why it has taken so long to get our leases out. He said he had been put on a top priority project so it was impossible to put the changes that were agreed to in the lease’s and mail them out. From the time we settled on what the lease would say, which did not include major changes of any kind and now, which now we are promised to have leases next week, however no mention about how we are going to receive our money or when;/
Legals are:
7N 64W section 4
50 net acres approximately.
We have some good wells nearby.
we have acreage in Weld that we were recently approached to lease on. . wondering who else is leasing in the area? Any input. . only interested in active leasing in the last 3 months.
DM what is the legal for you acres?
What is your offer and I presume Noble ?
Jason,
my partners would rather not disclose that data however if you wish to communicate directly with me doug at bigad.com.
If you wish to send an offer then we are happy to review it.
ps thanks for any help.
DM
DM I thought you were a person with Minerals not a Acquisitions and Divestiture company. I am sure you can find an answer to your question or already have since this is your business.
I was trying to get data for the partners on leasing in weld. Sort of the new frontier for us. . we have some acreage we acquired over the last year but havent leased any of it this is the first that has come open … we have focused on CA and TX with some OK focus but Colorado is a bit new. . also dabbling a bit in WY but that is all new as well (essentially the Rockies is the new frontier for us.
We primarily buy minerals. . not much of anything else at this point. .
I have 80 acres of mineral rights near Grover in Weld county. Legal description is T10, R62 west, 6th PM, Sec 13, S2 , NE4. I am looking for any interested parties wanting to lease.