Oil leasing and drilling activity aro...
Billoutwest

Bend, OR

#1219 Aug 13, 2011
Charles:

Did you notice:
"Application of G3 Operating, LLC pursuant to NDAC 43-02-03-88.1 for an order authorizing the drilling of a saltwater disposal well to be located in the NWNW of Section 1, T.157N., R.103W., Strandahl Field, Williams County, ND, in the Dakota Formation pursuant to NDAC Chapter 43-02-05 and such other relief as is appropriate." ?

A recent G3 spacing unit application.
charles

East Peoria, IL

#1220 Aug 13, 2011
Billoutwest:
Good to hear from you. Been missing your posts lately. Yes, I did see the application for G-3 in regards to drilling a SWD well. They currently have a well (Pasternak 1-1-12H)(T157N;R103W;Section1) and might have plans for several more in this area. Guess they want to utilize an SWD close to these wells to minimize costs. I know that they have numerous acres temp. spaced in the Strandahl Field and the clock continues to run toward the expiration dates. My guess is some of this acreage will be sold to other operators (Oasis,Marathon,Samson), in order to drill before the expiration dates. I think G-3 will have interests in these wells but they don't have the number of rigs to drill these areas prior to expiration. If they negotiate new leases, this is going to get very expensive. I am still watching the Roosevelt County area as some very good wells have been drilled this past year. Bottom line, I just watch the drilling permits and wait to see who actually shows up on location.
Lucky Lee

Merrill, WI

#1221 Aug 17, 2011
Question; after I receive notice that a division order is going to be mailed, approximately how long after can I expect my first royalty check?
charles

United States

#1222 Aug 17, 2011
Lucky Lee:
I believe that royalties are to be paid within 150 days after the oil and gas is marketed. Unpaid royalties, if not paid within the 150 days would be subject to something like 18% interest. This rule does not apply in situations where there is an ongoing title dispute. Enjoy your cash but don't forget about the taxes, my least favorite topic.
Kennedy 817

Hurst, TX

#1223 Aug 18, 2011
For Lucky Lee and general information; you don't have to sign and return a division order to be paid. The operator has to pay you what they think they owe you anyway. Do not execute and return the division order unless you are certain it is correct! This applies in ND and may not be correct everywhere. Good luck with your well/s.
Lucky Lee

Merrill, WI

#1224 Aug 18, 2011
Thanks guys for the good information. I appreciate your imput.
Billoutwest

Bend, OR

#1225 Aug 19, 2011
Charles:

This is from a drilling permit list posted by ND on Wednesday:

"MARATHON OIL COMPANY, MARY SVEET 34-21H, SWSE 21-157N-103W, WILLIAMS CO., 377' FSL and 2167' FEL, DEVELOPMENT, STRANDAHL,'Tight Hole', 2433' Ground, API #33- 105-02332"

Section 21 is up closer to the center of the township but note the operator.

Marathon.

Perhaps things will be more competitive.

Free market competition, I always say, is the best.
charles

Longview, TX

#1226 Aug 20, 2011
Billoutwest:
I saw this application and have already sent an email to Marathon but it was actually in regards to another area located in Sheridan County. In this email, I did mention this application and questioned their future interests in this area. I will inform you as to what I find out in this matter. Thanks for the info as I believe that 2012 - 2013 will be very interesting for both of us.
Billoutwest

Bend, OR

#1227 Aug 21, 2011
Charles:

Of course I don't know the full picture but Marathon has done some purchasing of leases nearby.
In the Township immediately south (156/104) on the Montana border Marathon bought four 80 acre parcels in Nov, 2009 on a state auction. I believe two were for about 1300/acre bonus and the other two $2150. These are long very narrow tracts.
THAT ARE CURRENTLY WITHIN OTHER COMPANIES SPACING UNITS!
http://www.land.nd.gov/

Perhaps that is a motivation at times.

{Then in section 11, not currently spaced, Marathon has 160acres from a Spring 2010 BIA Lease that they paid over 2150 for.}

Marathon isn't a small poorly planned outfit.
I suspect your letter will not indicate as much but that they do have a fairly large interest in the area.
charles

Longview, TX

#1228 Aug 21, 2011
billoutwest:
Thanks for the info. I should be hearing something this week from the guy at Marathon as he always answers my emails within about a week. I ask him about the MT and ND areas in my email. Interesting that Marathon is involved in these smaller sections near the MT border. These will definately be drilled as a 640 acre due to the small size of the sections. I think Marathon might become the primary driller in this area as G-3 and Oasis does not have the number of rigs available to drill all their holdings before the leases expire. I suspect 2012 will be an interesting year for ND border areas and MT (Extreme Eastern/ both Roosevelt and Sheridan Counties.) Again, I will let you know what Marathon has to say about their intentions.
charles

Longview, TX

#1229 Aug 22, 2011
billoutwest:
Noticed today (8/22) that Marathon has applied for a permit for T157N;R103W;Section 35. This area is near our minerals so Marathon may become more active in this Strandahl Field area. I was told that they hold numerous acres in this area but G-3 has our areas temp. spaced. I will guess that Marathon, being large and with more rigs, may be the ones who will drill the majority of the area.
Anita

United States

#1230 Aug 22, 2011
When a company leases your mineral rights do they have to notify you if they sell your lease to another company? Isn't this considered flipping your lease for a profit? What is your opinion on this? Thanks -- I am green at this adventure.
kennedy 817

Hurst, TX

#1231 Aug 22, 2011
Anita, unless you have something carefully crafted by YOUR lawyer in the lease that says they have to notify you, they do not have to notify you.
charles

Longview, TX

#1232 Aug 23, 2011
Anita:
I have never been notified when my leases have changed ownership and this has been since 2004. I keep up with temp. spacing applications regarding my mineral acreage thus I know who currently has the lease but don't bet that this will be the company that eventually drills as these companies swap and sell among themselves. Until the drilling permit is applied for and the rig is on locattion, your in the dark. Mr Kennedy is right in what he says in his post about notification of new lease ownership but I've never had that in my leases.
Anita

United States

#1233 Aug 24, 2011
Kennedy & Charles:
Thanks so much for your input which leads me to more questions.
How do you keep up with temp. spacing applications??
I did find out who now has our lease. It was sold to Kodiak. Have you heard of this company & what is your opinion?
My mineral rights are in McKenzie County and a new well was drilled about a mile from our property. I just wonder if they leased our mineral rights only for an add on to this area or what.
I have a 3 year lease which will expire in December, 2012, with an option to extend 2 additional years.
charles

Longview, TX

#1234 Aug 24, 2011
Anita:
The only way I keep up with things after the temp. spacing application is to watch for an application for a drilling permit. It should be noted that even a drilling permit application does not insure a well will be drilled but your'e getting very close. This drilling application can be held a year after approval so at this point, they will probably be looking at lease expiration dates. As far as Kodiak, I have heard good things about the company, they are on a smaller scale compared to some others in the Bakken (Continental, EOG, Brigham,etc.). In regards to minerals being leased, it will probably come down to which company holds the majority of the acreage and this could be Kodiak. I never try to second guess who will actually drill the well as there is too much swapping among the operators in some areas. Good luck on your lease and most likely you will see some action in 2012 or before your expiration date.
Marge Wi

Janesville, WI

#1235 Aug 24, 2011
I called the Company that held our lease and found out who now is holding our lease. I checked The Minot Daily News on the following site: MinotDailyNews.com and clicked on Oil Permits. There I found listed the permit, the name of our well and the proper numbers, and the Oil Company who applied for the permits. Also the County where he mineral rghts are and the township.I knew the numbers and the Name of our well. I hold the mineral rights with other siblings so wells aren't named after people. The Company chose the name and it is the name of the township where the mineral rights are.
Kennedy 817

Hurst, TX

#1236 Aug 25, 2011
Anita, I think it highly likely that the 2 year extention will be picked up, if for no other reason that McKenzie county is a "good" area and your acres could be traded by them at a profit, or they could participate in any well drilled by someone else. I wouldn't worry about permits unless and until the lease option does not get picked up. If they don't pick up the option, you have lucky stars and should make the most of the next lease cycle by getting as much royalty as you can along with whatever bonus you can squeeze out. Good luck.
charles

United States

#1237 Aug 25, 2011
Billoutwest:
Noticed that Marathon has applied for a drilling permit as follows: T157N;R103W;Sec 20, this location is the Section to the North of my minerals and is located in the Strandahl field. Looks like the migration in ND to the West is finally getting to the MT border. My minerals are in T157N;R103W;Section 29 and 31 and will the lease will expire next year. These operators are starting to speed things up since the clock is running toward these expiration dates.
Billoutwest

Bend, OR

#1238 Aug 26, 2011
Cool.

Glad to see it.

Shoot, I even hope Marathon gets its Libya Operations going again.

Thanks for the updates Charles.

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