The landman representing G3 is pushing my other family members to settle for $500/acre. With G3 being the operator for the drill how do I negotiate with another operator for our minerals. One family member was told G3 is going to start operation in about a month.
Andrew and Charles have the right idea I think about the bonus. I would not think any less than $1500 per acre fair if it were mine. I would negotiate on all fronts and ask for 22% royalty with no deducts for transport, gathering, dehydrating,seperating,marketing or conditioning, leaving room to negotiate to 21% or possibly 20% in exchange for the greater bonus I sought. Negotiate, do not concede anything. It doesn’t happen often but sometimes they drill a very poor well in a good area, if it produces you will be held by it anyway for a miniscule royalty. You are taking risks by leasing, the bonus is the compensation for taking a chance on them and allowing them to profit greatly from your minerals. Do your best to make it worth your while. If G3 won’t make a better offer I would start looking for outside offers. I would tell g3 that you are looking for other offers and that if they beat G3’S offer by $1 that the other lessee will have it. If someone else leases you and they participate then G3 will make nothing off your acres. Your time is valuable, ask them to cut to the chase.
I have rights in 157-102-6 that have been leased to G3. I see they are drilling wells 22309 & 2230 in the section immediately North of me (158-102-31). How do I find out if they are permitted to do a leg South into my section from one of these wells?
Re bonus/percentage this lease was signed 2-3 years ago and is at 20% and 525 per acre.
Charles:
Not familiar with Halcon Resources. Have they drilled any wells in the Williston Basin? I have a new company that acquired the lease on my minerals in MT and they have no wells in the area. Chances are, they will flip the lease, since it exprires in late 2013 and early 2014. Lack of capital and equipment are major problems for some of these newer companies. Leases in the Eastern MT area are beginning to expire and negotiating new leases can get rather expensive.
Charles M -
The confidential well list on NDIC shows the Thome 1-6-7H in SESW 31-T158N-R102W. Not my section - am I missing something?
Mr. Anderson, I would give them a 45 days to get the division orders out before I made a call. At this moment in time we don’t know for certain that they have even fracked the wells but we will know after 8-17. ND requires the operator to pay within 150 days of first sales or the operator owes you interest, providing your title is in very good condition.
Mr. Anderson, it’s offsite drilling, your well is sharing a pad with another well that has the bore going north, cheaper that way, 2 wells, 1 pad, 1 road, 1 landowner payment, 1 pipeline and probably comingling and sharing production tanks. I’m sure you get the idea.
Charles:
A little info on Halcon Res…From Reuters dated 4/25/12…Halcon bought G-3 for $973 million (cash and stock deal). CEO of Halcon, a Tulsa independent, states that plans are to build a portfolio of liquid rich assets before putting the the company, Halcon, on the selling block in a few years. CEO is Floyd Wilson, ex CEO of Petro Hawk. Petro Hawk was and still may be heavy into the Eagle Ford Shale. This tells me that Halcon is more of an investment company for the long haul and most likely will sell out when the time is right based on the price of oil and what holding they can amass.
Charles:
Good luck and hope your well is a good one. Mine comes off the confidential list in December.
Hello again…I have another question for anyone who might know. My mother has two new wells on property she has the mineral rights to. They are file no.s 20563 and 21081. They were both drilled at the same site and for some reason one comes off the confidential list on 7-20 and the other 9-17. I’m curious as to what kind of information will I be able to obtain once a well comes off the confidential list??? I’m also curious as to why one would come off two months earlier than the other??
Charles:
The well pad location was on T158N;R102W;Section 31 but the horizontal leg runs South into Sections 6&7.
Daren, the NDIC O&G Division is the best place to get information on a ND well, other than your check stub.
Thanks R.W. that does explain the time differential…you did not really address my other question…what kind of information will I be able to obtain once the well is off the confidential list?? Also where would I look to obtain as much information as I can on these wells?? Thank You
Hello, can anybody tell me anything about the oil wells- mustang-pinto-arabian-morgan? These are wells in the mandaree oil field that we are in a 1280 acre spacing unit with, we own 320 of those acres, and I believe that our decimal interest is .05, We own all mineral rights and are going to get 20% royalty from the oil co.
My siblings and I have mineral rights in the 157N-102W area and are waiting for activity to begin there. Any helpful information?
Spencer -
There is activity in the area now. What section are your rights in?
does anyone have a reasonable attorney in ND (williams county issue) having to do with title and probate / mineral rights issues.
Thanks,
Doug
Our family is using Bruce Selinger in Dickinson, ND. He is during our family bypass probate for us. It involves Williams Co as well as others there in ND. Here is his phone # if you would like to call him. 701 225-9155. He is in with other attorneys.
Can anyone explain to me what the term “oil run” means when referring to a well which is still on the confidential list but has had so many oil runs since it was drilled.
Thank You
robert:
The term “oil run” refers to the production of oil during a specified period of time ; if applicable, where oil is put in pipeline for sale. A run ticket is generated from a lease into a connecting pipeline or transportation mode. This ticket is usually made out in triplicate by the gauger and witnessed usually by the pumper of the lease. These tickets, which are invoices for the oil delivered shows the opening and closing gauge, API gravity and temperature. Production run info is allowed during the confidential period of a well along with the operator name, well name, location spacing or drilling unit description, spud date, and rig contractor. All other info is held confidential for a 6 mo. period.