Brittany, EOG has decided to focus their assets elsewhere. Therefore most of (if not all) their leasehold has been sold to other operators. I believe EOG still operates a few wells in the area although they are not impressive wells.
A typical Horizontal Shale Well will produce 80% of its EUR the first 3 years. The Operator can do alot to re-stimulate (like refrack) and the well comes back to life. In the Bakken, Eagle Ford and Niobrara they are finding that alot more Horizontal Wells are needed per section. There are parts in Weld County that Encana and Noble are drilling up to 12 wells per 640. Yahooo for Mineral Holders.
Well… there almost all directional wells becuase no vertical he is straight we are always steering the PDC bit back straight. Now for HZ see my post above
Ian Lang - I would love to see some evidence of your claim EOG sold out their position here in Weld. Can you provide a link, source, anything???
Jason, what ever happened to JAKE production.? Did it keep spewing out crude at the early rate, or has it slowed down a lot?
According to State Records EOG production has decline exponetially each year. Perhaps since the JAKE Well they have found great value in there lease holdings that they picked up for dirt cheap and go them holding by production.
Here is what they have done last few years.
http://www.youtube.com/watch?v=8uYOTLjNpY8&app_data={%22pi%22%3A%225203ff19fee426d875000002%22%2C%22pt%22%3A%22wall%22}
You Tube video from Shell Oil
Joe, still pumping strong.
Our family has half ownership of the mineral rights for 320 acres on Township 9, Range 61. My father received an offer 5 years ago from Transcontinental Oil Company to lease the rights at 1/8th ( 12-1/2%), and a bonus payment of about $20/acre. None of us at that time knew much about the situation in Weld County, and he signed the agreement, which included an exclusivity clause with Transcontinental, and an option to extend the lease for an additional 5 years. We are approaching the end of the 5 years, and have received a letter from what is now Noble, interested in possible extending the lease. My question is, are we locked into the same numbers for this additional 5 years, or is this negotiable? These numbers are low from what we’ve come to learn as to the current activity in Weld. What is the current activity in this particular area? Any help and advise would be appreciated. This November is when it comes up for renewal.
What does the 6th PM mean on lease?
Thanks for the info Steve.
Marsha: Noble has 4 wells actively drilling in section 19. 2 horizontals and 2 verticals. All 4 were spud in June 2013. None completed yet per the OGC records. Give them a few months to complete and bring into production.
They are a very professional and competent company. Looks good for you.
Transcontinent is a brokerage company. They were doing the land work (i.e. tile and leasing) for either Noble or another company. Must have been assigned into Noble. Very active township – numerous permits and active well locations. You are probably contractually locked in for another 5 years with their option to extend. Upside is the fact that Noble is very active and a very efficient operator. Downside is you could have gotten 25-50x more in lease bonus and a better royalty. My advice – don’t respond until lease expires as usually the lease owner has to contact you and pay you before expiration. Read the terms of the option to be clear on that.
Meant to say title…not tile
Yes, the lease option to extend states that the said amount ( defined as “an equal amount to the original amount paid” ) to be paid to the lessor on or before the expiration date of the primary term. I don’t know the relationship between Transcontinent and Noble; the original agreement was with Transcontinent, but the recent letter was from Noble, with no mention of Transcontinent. Jason, the area we’re talking about here is Township 9 North, Range 61 West, 6th P.M., sections 30 and 31.
Mr. Walker: You have an active well location in Section 30: Lot 1.
Well Name: Jackson Draw 21-30H Operator: Noble
You are probably going to get drilled.
My family has a lease with Noble since last year. We have not heard or received any money for oil being produced. Our lease in Township 9N 58W Section 19 lot 1 & 2. We don’t live in the state. According to internet there are wells in that section. How long when well is approved before actual oil flow which we are hoping means money flow. We have 17% royalties.
Marsha: Buyers come in from Okla, TX, LA – always hoping to buy kind of low in hot areas. Hoping the mineral owner doesn’t know much and needs money. I have had offers for my Weld minerals and get multiple offers every week for Bakken minerals.
Thanks for the info Steve. My family received 2 offers yesterday to buy our mineral rights. Very generous offers. Leads me to believe they know something we don’t.
I’m trying to better understand the laws regarding mineral rights. If the acreage I own the mineral rights to is part of a larger drilling unit, how would my royalties be determined if a producing well is on this unit, but not my property? If a well is drilled outside of the unit, but extends horizontally beneath the unit that my property is a part of, would I be entitled to royalties?