It appears that the current drilling activities are in the far eastern portion of Roosevelt County. Does anyone have a projection when they may want to start drilling in the western portion? Is it typical that oil companies move outward from sweet spots, and if so, what is the usual rate of migration?
MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.
Charles,
Thank you for replying. What does HBP mean? How do we find out if there is any seismic data for our area? Also, are we completely dependant on if and when the oil companies may want to drill?
charles s mallory said:
MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.
MFrede:
HBP stands for "held by production". If you have leased your minerals and a well is drilled on your spacing unit, the lease is held by production which means the leaee will not expire. The operator may take a couple of years to drill another well in the spacing unit and will not be held by that expiration date. Operators strive to drill that first well in order to get the lease HBP so they won't have to re-lease the area. You might check with the Montana Oil and Gas Commission in regards to info on any seismic surverys in the area as these companies have to apply for permits in order to conduct these surveys. As long as an operator has active lease, they run the show as to when or if a well will be drilled.
MFrede said:
Charles,
Thank you for replying. What does HBP mean? How do we find out if there is any seismic data for our area? Also, are we completely dependant on if and when the oil companies may want to drill?
charles s mallory said:MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.
Charles,
Thank you. If none of the land in our area is leased yet, is there a way to advance exploration or do we all have to just wait? In a different post, you commented on the high costs of hiring an independent driller, but are there any other options?
charles s mallory said:
MFrede:
HBP stands for "held by production". If you have leased your minerals and a well is drilled on your spacing unit, the lease is held by production which means the leaee will not expire. The operator may take a couple of years to drill another well in the spacing unit and will not be held by that expiration date. Operators strive to drill that first well in order to get the lease HBP so they won't have to re-lease the area. You might check with the Montana Oil and Gas Commission in regards to info on any seismic surverys in the area as these companies have to apply for permits in order to conduct these surveys. As long as an operator has active lease, they run the show as to when or if a well will be drilled.
MFrede said:Charles,
Thank you for replying. What does HBP mean? How do we find out if there is any seismic data for our area? Also, are we completely dependant on if and when the oil companies may want to drill?
charles s mallory said:MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.
MFrede:
I hate to say it but the waiting game is just about all us mineral owners can do. Keep abreast of what is going in your area so if your lease expires and you get a chance to negotiate a new lease, you will be aware of the gong rates. Good luck.
MFrede said:
Charles,
Thank you. If none of the land in our area is leased yet, is there a way to advance exploration or do we all have to just wait? In a different post, you commented on the high costs of hiring an independent driller, but are there any other options?
charles s mallory said:MFrede:
HBP stands for "held by production". If you have leased your minerals and a well is drilled on your spacing unit, the lease is held by production which means the leaee will not expire. The operator may take a couple of years to drill another well in the spacing unit and will not be held by that expiration date. Operators strive to drill that first well in order to get the lease HBP so they won't have to re-lease the area. You might check with the Montana Oil and Gas Commission in regards to info on any seismic surverys in the area as these companies have to apply for permits in order to conduct these surveys. As long as an operator has active lease, they run the show as to when or if a well will be drilled.
MFrede said:Charles,
Thank you for replying. What does HBP mean? How do we find out if there is any seismic data for our area? Also, are we completely dependant on if and when the oil companies may want to drill?
charles s mallory said:MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.
Thank you.
charles s mallory said:
MFrede:
I hate to say it but the waiting game is just about all us mineral owners can do. Keep abreast of what is going in your area so if your lease expires and you get a chance to negotiate a new lease, you will be aware of the gong rates. Good luck.
MFrede said:Charles,
Thank you. If none of the land in our area is leased yet, is there a way to advance exploration or do we all have to just wait? In a different post, you commented on the high costs of hiring an independent driller, but are there any other options?
charles s mallory said:MFrede:
HBP stands for "held by production". If you have leased your minerals and a well is drilled on your spacing unit, the lease is held by production which means the leaee will not expire. The operator may take a couple of years to drill another well in the spacing unit and will not be held by that expiration date. Operators strive to drill that first well in order to get the lease HBP so they won't have to re-lease the area. You might check with the Montana Oil and Gas Commission in regards to info on any seismic surverys in the area as these companies have to apply for permits in order to conduct these surveys. As long as an operator has active lease, they run the show as to when or if a well will be drilled.
MFrede said:Charles,
Thank you for replying. What does HBP mean? How do we find out if there is any seismic data for our area? Also, are we completely dependant on if and when the oil companies may want to drill?
charles s mallory said:MFrede:
Predicting the movement of drilling activity is somewhat hard to answer. There are so many variables involved such as seismic tests results, rig availability, price of oil and the quality of wells being drilled. Currently, the majority of the drilling activity still remains in the Western ND area but more rigs are crossing the border into MT in order to drill on areas nearing lease expiration. This holds true especially for the "hotter" areas which currently exists in the Richland County area. Another important factor which will play a role in the increased activity is the improvement of the infrastructure. Additional pipelines and other other modes of transporting oil should occur over the next few years. I am optimistic that the MT area activity will increase over the 2013 -2014 years as the ND leases become HBP.