I have a source thats informed me that there is drilling going on today on an oil well on a site about 1/2 km South of Souris beside the golf course. I'll admit to not knowing as much about the growing oil boom in Southwest Manitoba as I should, but my understanding is that this is the first one right at Souris as activity continues to grow in our province.

How has oil effected you in your part of the province, and how do you expect it to effect you over the next decade?

Edited by admin, 2012-06-14 23:24:24. Reason: Title

Actually, the farmer that owns the land is doing his own drilling,Its called Wild Catting.He is taking the chance that oil is there.He also assumes all the cost.I know the farmer, so I know it is not a oil company that is drilling.

other wells have been drilled around souris and there is the small field between souris/elgin and hartney.but this is the closest a well has been drilled to the town, [goodluck jerry and family]i cannot thank my grandpa from lyleton who never sold his oil rights i thank him every month when i cash my royalty cheques

i did notice they pushed a lease up there a while back and were moving the rig in a couple days ago, there are some wells near hartney, well see i guess how this one turns out near souris  
 
 
oil was here in the SW corner since we moved here which has provided us with a decent living but recently the activity has gone way up which has driven housing costs and traffic levels up in our small town but it has also allowed the small businesses to keep providing us with services the down side is its very hard for them to retain their employees as if you can handle the work oil moneys good, some of the jobs i expect to disappear but some will stay around for longer which is a plus, and for the people who have oil rights are also getting some $$ out of it which filters down to the rest in our community, all and all its not bad to have

he assumes there oil there? never been seismic done? wow must be a loaded farmer to foot that bill of a rig.

Sorry Adam, a little off topic, the oil rights people speak of...how do you get these rights? When we bought our acreage, there was a clause about " no mineral rights etc," Are these old family land claims, or is there a way to get your mineral rights?  
I too have heard lots about the "oil boom" and am looking forward to this discussion to see a local and personal viewpoint from people  

Sandra O said "Sorry Adam, a little off topic, the oil rights people speak of...how do you get these rights? When we bought our acreage, there was a clause about " no mineral rights etc," Are these old family land claims, or is there a way to get your mineral rights?   I too have heard lots about the "oil boom" and am looking forward to this discussion to see a local and personal viewpoint from people   "

You'd have to buy them from whoever owns them. Land can be sold with or without the mineral rights, and by the sound of it, I'd say the people you bought your acerage from kept them.  
 
But the catch is if you go asking to buy them, you're tipping off the owner that there is activity around.  
 
The surface rights, while much smaller than the oil rights, are still worth a decent amount.

More than wild catting I figure .  
 
The majors are sniffing around. They are/will be drilling some test holes South of Souris but not too near. One of my customers who services one Major was told about 10 km.  
 
The last I heard they were looking but not found yet. Lots of coin to drill a test hole. If they are spending the bucks some homework by them must have been done!  
 
Throwing a dart at a map is too risky!

Just to completely clear up... We already have a few folks posting that are obviously in the know, but this is in fact exploratory at this point. Mineral rights are listed under Fort Calgary Resources Ltd, contractor is Terroco Drilling if that tells anyone a little more familiar with the oil business anything:  
http://www.manitoba.ca/iem/petroleum/wwar/120514weekly.pdf (page 2)

Back in the dirty thirties when everyone was on really hard times there were a couple of men that went around to the farmers and offered them $50 for there oil right per quarter section of land, $50 bucks was a lot of money then and they conned a lot of farmers into this scheme, some farmers said no and some sold half and some sold it out right, it turns out that these two cons were working for let's say the people in the know!!

7of10 said "Back in the dirty thirties when everyone was on really hard times there were a couple of men that went around to the farmers and offered them $50 for there oil right per quarter section of land, $50 bucks was a lot of money then and they conned a lot of farmers into this scheme, some farmers said no and some sold half and some sold it out right, it turns out that these two cons were working for let's say the people in the know!! "

so someone sold something in the 30's for big money at the time and as of yet many many of quarters have no pumpjacks on them? They got conned? Maybe that $50 went towards retaining that land, taxes or putting some food in the bellies of those struggling farmers. Now the Government conned lots by loaning them money and taking the rights as collateral until such loan was paid back except the Gov kept them and until just recently when a group of farmers sued and won back their rights has anything changed. Not sure if the Gov has returned all mineral rights or just to those that sued.

the gov was taxing then so if you were broke you let then go. In the Kola area the oil field has ruined ever road around here. The people with the pumps are doing alright as they have 4x4's but the rest of us with small cars pay the repairs from the mud/wood roads. We also get the added taxes to do repairs to the roads and build new roads. It also has put most people around here in so much debt from yhe over priced houses that they will never see the light at the end.  
With every oil boom comes a bust so save for tomorrow.

why the prices of Souris are comparable to Brandon.  
Yes there is oil. Spoke with the guy who worked for the company doing the test holes back several months and he told me they found what they were looking for. Even showed the mapping (way over my head)to us. So glad we bought a business down there in 2010 because things are going to go crazy. Brandon of course will see the spin off.  
There are already at least 2 oil/rig companies that have moved into Brandon.

Curious if anyone has any info on how deep they're having to go at some of the oil sites in the area.  
 
This link has a couple of maps that give a decent idea of the area:  
http://newenergyandfuel.com/http:/newenergyandfuel/com/2010/11/19/more-american-oil/  
 
and a good story on the North Dakota boom.. I'm sure many of the points would apply to oil areas in SW MB too:  
http://www.npr.org/2011/12/02/142695152/oil-boom-puts-strain-on-north-dakota-towns  
 

Terry9366 said "    7of10 said "Back in the dirty thirties when everyone was on really hard times there were a couple of men that went around to the farmers and offered them $50 for there oil right per quarter section of land, $50 bucks was a lot of money then and they conned a lot of farmers into this scheme, some farmers said no and some sold half and some sold it out right, it turns out that these two cons were working for let's say the people in the know!! " so someone sold something in the 30's for big money at the time and as of yet many many of quarters have no pumpjacks on them? They got conned? Maybe that $50 went towards retaining that land, taxes or putting some food in the bellies of those struggling farmers. Now the Government conned lots by loaning them money and taking the rights as collateral until such loan was paid back except the Gov kept them and until just recently when a group of farmers sued and won back their rights has anything changed. Not sure if the Gov has returned all mineral rights or just to those that sued. "

i'd like to know more about this lawsuit . my dad told me a similar story about the government taking the oil rights . i would like to know where ours went . if grandpa let them go , there should be a paper somewhere at land titles with his signature on it , giving up his mineral rights .

http://www.manitoba.ca/iem/petroleum/oilfacts/index.html

There is many spots all over Manitoba untapped. Can't say much about it but well known where the deposits are over 10 years ago..  
 
My uncle knows and works for a company in exploration in a big high rise..

adam,i work in the stanley nd.area and the well i am on is going into the 3 forks zone ,it will be over 2miles deep and its a horizontal and the leg will be approx. 2 miles long.this well when completed will cost in the 12 million $ range.its worth the hour drive west of minot to see the activity.a great article about the nd. boom is in this months popular mechanics.

saddletramp said "Actually, the farmer that owns the land is doing his own drilling,Its called Wild Catting.He is taking the chance that oil is there.He also assumes all the cost.I know the farmer, so I know it is not a oil company that is drilling. "

would he waste his time. The farmer owns the first 6 feet of his land. Would be better for the oil company to drill. In Manitoba you dont own the Mineral rights.

Adam said "Curious if anyone has any info on how deep they're having to go at some of the oil sites in the area.     This link has a couple of maps that give a decent idea of the area:   http://newenergyandfuel.com/http:/newenergyandfuel/com/2010/11/19/more-american-oil/     and a good story on the North Dakota boom.. I'm sure many of the points would apply to oil areas in SW MB too:   http://www.npr.org/2011/12/02/142695152/oil-boom-puts-strain-on-north-dakota-towns     "

in Virden we go about 2500 m.

Jeff_2008 said "    saddletramp said "Actually, the farmer that owns the land is doing his own drilling,Its called Wild Catting.He is taking the chance that oil is there.He also assumes all the cost.I know the farmer, so I know it is not a oil company that is drilling. " would he waste his time. The farmer owns the first 6 feet of his land. Would be better for the oil company to drill. In Manitoba you dont own the Mineral rights. "

But in Manitoba you can and many farmers or the non farming descendants of farmers do own mineral rights. My families mineral rights are leased to oil companies and/or potash companies.  
 
Edited by Terry9366, 2012-06-15 17:48:46

Terry9366 said "    Jeff_2008 said "    saddletramp said "Actually, the farmer that owns the land is doing his own drilling,Its called Wild Catting.He is taking the chance that oil is there.He also assumes all the cost.I know the farmer, so I know it is not a oil company that is drilling. " would he waste his time. The farmer owns the first 6 feet of his land. Would be better for the oil company to drill. In Manitoba you dont own the Mineral rights. " But in Manitoba you can and many farmers or the non farming descendants of farmers do own mineral rights. My families mineral rights are leased to oil companies and/or potash companies.     Edited by Terry9366, 2012-06-15 17:48:46"

For clearing that up. I thought the gov't owned the rights.

In Manitoba and Southeastern Saskatchewan landowners got mineral rights with the land, the railways got some, universities some and the Crown some, later on the Governments realized future value of them and retained them. Some Municipalities retained all mineral rights on land lost for taxes when they resold it.

There have been many millionaires made in the last few years (as well as since the 50's in the Virden area) with the mineral rights, many lease their rights to the oil company and than receive in the 15-20% royalty, free of costs if and when a well is produced.  
 
Edited by Terry9366, 2012-06-15 18:00:24

chopper1 said "    Terry9366 said "    7of10 said "Back in the dirty thirties when everyone was on really hard times there were a couple of men that went around to the farmers and offered them $50 for there oil right per quarter section of land, $50 bucks was a lot of money then and they conned a lot of farmers into this scheme, some farmers said no and some sold half and some sold it out right, it turns out that these two cons were working for let's say the people in the know!! " so someone sold something in the 30's for big money at the time and as of yet many many of quarters have no pumpjacks on them? They got conned? Maybe that $50 went towards retaining that land, taxes or putting some food in the bellies of those struggling farmers. Now the Government conned lots by loaning them money and taking the rights as collateral until such loan was paid back except the Gov kept them and until just recently when a group of farmers sued and won back their rights has anything changed. Not sure if the Gov has returned all mineral rights or just to those that sued. " i'd like to know more about this lawsuit . my dad told me a similar story about the government taking the oil rights . i would like to know where ours went . if grandpa let them go , there should be a paper somewhere at land titles with his signature on it , giving up his mineral rights . "

There is an article in "Manitoba Business magazine" December 2010 issue regarding it. from the article "In the 1930's, many farmers pawned their mineral rights to the Manitoba Government for loans with the understanding that the rights would be returned with the payment of the debt. However the Government reneged on the deal saying that the mineral rights were in the public domain and should remain as such." Supreme Court of Canada decided in favor of the farmers.

The municipality of Pipestone received a bunch of property way back in the 30/40's through tax sales. They resold the land but kept the mineral rights.Now that was forward thinking! The last I heard the coin they get each year from oil rights/royalties is aprox 2.5 million.  
 
Not bad for a population base of 500!

Tempco 3 ended up snapping up the Souris job - if this info is of importance. It is plain to see from the highway.  
 
There is a directional drilling company there, so someone knows more than what is perceived...  

Supreme Court of Canada  
Wardle v. Manitoba Farm Loan Association, [1956] S.C.R. 3  
Date: 1955-11-15  
 
you can read the whole judgement

Jeff_2008 said "    saddletramp said "Actually, the farmer that owns the land is doing his own drilling,Its called Wild Catting.He is taking the chance that oil is there.He also assumes all the cost.I know the farmer, so I know it is not a oil company that is drilling. " would he waste his time. The farmer owns the first 6 feet of his land. Would be better for the oil company to drill. In Manitoba you dont own the Mineral rights. "

but you are very mistaken. trust me as my wife has mineral rights

Oil Rights are attached to the original title of a piece of land, they can be later severed from the title in order to create a seperate asset. This asset can then be sold, leased or given away. 95% of the land in Manitoba is "freehold" as in the original land owner owned the rights and has either kept them with the land or seperated the rights. Freehold royalties account for about $100 million in revenue to the title holders annually across the province. I think Jed Clampett has a cousin in Waskada.