Oil leasing and drilling activity around the McKenzie County area

[charles]

Billoutwest:
Looking over the Dockets for April on the NDIC website, it looks like Williams County is becoming alot more active. Maybe these companies are looking at the lease expiration dates and since spring is upon us, trying to drill as much as possible during the spring/summer months.

[Billoutwest]

It is complicated.

Those lease expiration dates are important.

If you don't have it on a favorite you should.

Million dollar way.(He is conservative - enter at your own risk)

http://milliondollarway.blogspot.com/2011/04/...

At this page he discusses and posts a few expiration dates for a couple companies.

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Williams County should also be viewed as a battleground between Clearwater, Brigham and Oasis plus some Slawson/G3 types. They are really going at it to get as many spacing units as permanent as possible.

[jerome6016]

what forms do I need to make sure are in my name at the clerk of courts office for the mineral rights that I own.
thanks

[Kennedy 817]

jerome6016 wrote:

what forms do I need to make sure are in my name at the clerk of courts office for the mineral rights that I own.
thanks

If you inherited the minerals, you should have received a mineral deed. That would be best to record. Failing that you should file a statement of claim, to preserve your mineral rights so no one else can claim them as abandoned. SEE YOUR OTHER POST IN THE ADVICE THREAD FOR MORE INFO.

[charles]

Billoutwest:
Thanks for the info. Good information on a problem I could see coming. I think G-3 will be drilling on our minerals this year as the expiration date is looming in early 2012. I don't beleive they can afford to have a mass renewal of leases at todays rates for this Williams County area. I still think the same scenerio will play out just across the border over the next couple of years. Just sit back and watch the action.

[Mark]

we have land in mercer county, nd southeast of Hazen, Nd does anyone knoww if there is any activity going on there

[Billoutwest]

Charles:

Look over;
http://groups.google.com/group/bakken-shale-d...

There are two Marathon spacing units mentioned here in posts 1 and 3.

That's encouraging overall although it is a few miles West & SW of you.

[Billoutwest]

Oops.

Charles, looked on Google Earth and these are close to you.

The first one is next door - you're section 11 as i recall and that spacing unit is for 1/12.
The lower one maybe just a few miles from one of youR properties.

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Didn't someone else apply for the 31 / 58 sections 1 & 12 spacing earlier?

[charles]

Billoutwest:
We recieved a notice just yesterday from Marathon via Federal Express, that they are requesting a temp. spacing on acreage in Sheridan County where we have 40 net mineral acres. This acreage is just to the North of our acreage in Roosevelt County. I had almost forgot about that small amount of acreage in Sheridan Co. as my eye has been on T30N;R59E; Sections 6&7 in Roosevelt Co. and on G-3 over in ND. They must see something up in Sheridan Co. as several acres has recently been spaced. If they drill and get a "fair" well, the check will be pretty good as we have a 16.67% royalty on that acreage. I still believe G-3 will eventually drill on us in ND and don't know about EOG in Roosevelt Co. but it will depend on how well the production is in this area.

[Overland]

These are the mineral
acres we have in Montana. Could you tell me if these are in the same area?
T 31N, R56E
Sec. 9:SW
Sec. 25: Lots 1(35.59), 2(35.70), W2NE
Sec. 27: S2
Sec. 34: NE

T 31N, R57E
Section 30: Lots 1(36.24), 2(36.31), E2NW, NWNE
210.96 nma/983.84 gma
Sheridan County, Montana

[Billoutwest]

Overland:

The first Montana Spacing Unit by Marathon - 31N-58E sections 1 & 12 are both in different townships than your two properties.
The second one is 10 miles away at their closest points.

So these spacing units, if permitted and then drilled successfully will probably affect your future.

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it's going to take some step by step moves by at least a couple companies to open up this area.

Marathon is larger and very deliberate and well thought in its moves. Generally.
Regarding the two spacing units applied for by Marathon to your east I would think at least one will be drilled this year.

[charles]

Overland:
Looking over the April Dockets, it appears Whiting Oil and Gas has applied for a temp. spacing unit for T31N;R56E;Sections 25 & 36. From what you posted, it appears that your minerals would be in that Section 25 spacing unit. Our minerals are in T31N;R59E;Section 31. As stated earlier, we recieved a notice letter from Marathon regarding this temp. spacing application. This is the first time we ever recieved a notification letter from an operator regarding temp. spacing. Again, this is interesting why all these temp. spacing for Sheridan County is being applied. If we're lucky, maybe somebody will get a well.

[charles]

Billoutwest:
What's up with all the "change of operators" in the ND area. Noticed today, another group of operator name changes has been made on the ND IND COMM website. Also, contacted G-3 about the ND mineral area and the landman stated that since the leases will be expiring in mid 2012, they would try to re-lease this acreage if possible. Further, the landman stated that rig availablity in proportion to the number of spaced acres would play a major factor. All I know is that the bonus amounts and % royalty are much higher than in 2008.

[Billoutwest]

Charles:
You need to start a steady research process to figure out what you should be getting for a bonus/royalty.
Its not a well permit but congrats are in order I believe.
I would think that something over $2000/acre should be easy to get by a year from now. Who knows how much?

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I'll look over the changes.

[heather]

Just curious if anyone knows any of these questions cause i am new to all of this but I just got word that they are getting a permit to start drilling.Does that mean if they do hit oil are they going to use or reserve it. Does anyone know where I can find out information on my mineral rights in Rosevelt County.May sound like stupid questions but i really dont know the process or anything on this

[charles]

Billoutwest:
I have already begun to research current bonus/royalty rates in the ND area as I knew that this scenerio would occur in view of the number of spaced acreage vs avaiable rigs. I actually will be happy to get new leases as we only got $100/acre bonus in 2008 with a 1/8 royalty on part of the acreage. This new lease will be in my favor. Who knows, when G-3 starts seeing how much it will cost to re-lease, they might come up with additional rigs to get these leases on hold. I think we will get a well in the Sheridan area as the migration has moved that direction. Talked to the Montana O&G in regards to this current interest in Sheridan Co. and was told that some are getting out of the Flat Lake Field in the North corner area of the State. Also, they said extensive seismic work has been conducted in Sheridan Co. and these results are coming in.

[charles]

Heather:
The best way to keep up with the Roosevelt Co. drilling activity is to keep up with the weekly activity reports on the Montana O&G website. This information is posted on Friday of each week. Upon completion of a well, the oil will be sold after all on lease work is completed. Also, check the Sidney Hearld newspaper for O&G notices as they also publish this information.

[Overland]

I thank all of you for your input recently. Since I am new to this board or for that matter new to even receiving news that a permit for spacing has been applied for your information is greatly appreciated. I am hoping one of you can tell me how I would find out if the permit is in fact granted after the hearing and also how I would know what the name of the well being drilled would be? In order to track the status would I not need the name? Again, thanks for your input!

[charles]

Overland:
You can always call the Montana O&G Commission (phone # on website) in order to learn the status of a permit after a hearing. I can tell you that 99% of the time permits are granted. You can also get updated info. on the well from the Mont. O&G.

[charles]

Billoutwest:
Just reading about Brigham's well, the Johnson30-19 1H well in Richland County, Montana. Initial flow = 2,962 bbls. In know this is a few miles South of us but events like this will bring the spotlight to the Montana area big time. I still say within the next couple of years, Eastern Montana will be very active in drilling activities.