ND Oil and Gas Advice Column
Sue

Fergus Falls, MN

#395 Mar 31, 2011
Merry wrote:
I own mineral rights with my sister--in Slope county--the north west area--1700 acres. don't see much activity there yet--is it not the right kind of geology or are they taking it from the prime areas first--wondered too if the road system is not great there to get to that section--we have secton 1,2 and part of 12 at 136N and 104W--hoping for a call from an oil company in the near future.
Merry, We're just to the west of you on range 101, no luck with offers. Not sure if they're not interested or just not yet.
PaleoJoe

Bismarck, ND

#396 Mar 31, 2011
Merry wrote:
I own mineral rights with my sister--in Slope county--the north west area--1700 acres. don't see much activity there yet--is it not the right kind of geology or are they taking it from the prime areas first--wondered too if the road system is not great there to get to that section--we have secton 1,2 and part of 12 at 136N and 104W--hoping for a call from an oil company in the near future.
http://pubs.usgs.gov/fs/2008/3021/pdf/FS08-30...

The link I provided is from the assessment the USGS did in 2008 of the Bakken Fm. As you can see from the map, the edge of the Bakken-Lodgepole is within Slope County, but there isn't much production. The southern extent of the Bakken is probably near I-94. Not much drilling south until you get to Marmath, but those are mostly Red River Fm wells. Check out the ND Oil and Gas Division ArcIMS Map Server ( https://www.dmr.nd.gov/oilgas/ ) and you can see all the wells ever drilled in ND. Slope County has a large number of dry holes.

Since: Mar 11

Bismarck, ND

#397 Mar 31, 2011
We saw Boston energy paid $1850/acre for 40 acres at public auction yet we are offered $800/acre for smaller mineral acreage in the very same section in Divide County,(160 of 96). What might be the reason?

Since: Dec 10

Hurst, TX

#398 Mar 31, 2011
The 1850 is probably cheaper for the oil co. They don't have to run title on the state or fed govt.They don't waste time negotiating. Time is money. They also know they are in competition when they are bidding. You want to know what the lease agents best offer he is authorized to make. That may not be the best offer just the best he can make without permission. When you get an offer that seems low just thank them and say you can't accept because so and so [ insert other lease agent here ] Just say northern if you can't think of one; has made you a better offer. He will trot out a better offer. His job is to get you leased, cheap if he can, but leased if at all possible. Oil co's don't have enough mineral acres of their own; they have to lease yours to make money. If they don't hold your lease they will make nothing off your property when they drill. I always try to get a competitive offer. I have negotiated up from $200 acre and 18% to $3,000 acre and 20% in a good but not fantastic area [Dunn co] using that very method. Think about it. Do your homework, find out as much as you can about your area from neighbors and total strangers if necessary. A weeks worth of research could yield hundreds of dollars per acre more.

Since: Dec 10

Hurst, TX

#399 Mar 31, 2011
$800 doesn't sound so bad if the state auction only brought $1850. I swear I have been offered $75 an acre and 1/6 in McKenzie co when my neighbors were signing for $1000 acre and 20%. I didn't sign for that little of course. They have to try to get it cheap. If one in 1,000 goes for it they probably have a party. Or if they can get someone to sign a ten year lease, that's a keeper. There's always someone who doesn't know what's going on. I was that person in the beginning. I escaped the worst of it by sheer dumb luck and stubborness. Good luck with your leasing.

Since: Mar 11

Williston, ND

#400 Mar 31, 2011
Hello,

I have connections to companies and I am looking for minerals to be leased in 161-101 of North Dakota at the moment. If you have any unleased acres I can help you get some pretty good offers in that area at the moment. I am not a leaser or lease company I just help get better offers for a small fee. Email through this site if your interested. I can get offers for you in other areas too but at this time they might not be real good, but I can check. I have done a number of leases for others lately.

Thanks
Connelly

Albany, NY

#401 Apr 1, 2011
Any oil drilling companies interested in leasing 53 acres at Township 163 North, Range 95 West in Divide County?
Sue

Fergus Falls, MN

#402 Apr 1, 2011
PaleoJoe wrote:
<quoted text>
http://pubs.usgs.gov/fs/2008/3021/pdf/FS08-30...
The link I provided is from the assessment the USGS did in 2008 of the Bakken Fm. As you can see from the map, the edge of the Bakken-Lodgepole is within Slope County, but there isn't much production. The southern extent of the Bakken is probably near I-94. Not much drilling south until you get to Marmath, but those are mostly Red River Fm wells. Check out the ND Oil and Gas Division ArcIMS Map Server ( https://www.dmr.nd.gov/oilgas/ ) and you can see all the wells ever drilled in ND. Slope County has a large number of dry holes.
Hi Joe, Actually I'm just East of Merry's land, and a dry well was drilled in the 60's. Is there a chance with new technology they'd ever redrill or at least reevaluate that as a potential well again? Another question, what would cause so many canceled permits on the NDIC map? Take a look at T133,134,135 R104,105,106 to see all the canceled permit marks (legend indicates it as an open circle with single line thru it). Any indications, that the interest in Slope will pick up, and about how long until?
PaleoJoe

Bismarck, ND

#403 Apr 1, 2011
Sue wrote:
<quoted text>Hi Joe, Actually I'm just East of Merry's land, and a dry well was drilled in the 60's. Is there a chance with new technology they'd ever redrill or at least reevaluate that as a potential well again? Another question, what would cause so many canceled permits on the NDIC map? Take a look at T133,134,135 R104,105,106 to see all the canceled permit marks (legend indicates it as an open circle with single line thru it). Any indications, that the interest in Slope will pick up, and about how long until?
One of the problems with horizontal drilling is that if you hit a part of the zone that has water in it, you've ruined the well. Most of the Bakken doesn't have that problen, neither does the Three Forks. There are two other formations that might show promise - the Tyler and the Spearfish, but with the focus on the Bakken, there isn't too much interest to go prospecting.

On the cancelled permits - an example of that is on my wife's land by Halliday. A well site was already staked out in the fall of '08 and they were set to drill, but the prices dropped. The oil company then sold off their properties in ND, so they won't be drilling that well. Also, in areas that are marginal they may not keep their leases if they have other leases that will expire in known producing fields.
Sue

Fergus Falls, MN

#404 Apr 2, 2011
PaleoJoe wrote:
<quoted text>
One of the problems with horizontal drilling is that if you hit a part of the zone that has water in it, you've ruined the well. Most of the Bakken doesn't have that problen, neither does the Three Forks. There are two other formations that might show promise - the Tyler and the Spearfish, but with the focus on the Bakken, there isn't too much interest to go prospecting.
On the cancelled permits - an example of that is on my wife's land by Halliday. A well site was already staked out in the fall of '08 and they were set to drill, but the prices dropped. The oil company then sold off their properties in ND, so they won't be drilling that well. Also, in areas that are marginal they may not keep their leases if they have other leases that will expire in known producing fields.
Thanks for the info. I'd read about the Tyler formation, but there isn't much about it, in current news. I figured that oil companies were grabbing the easy take first. As for the canceled permits and being so concentrated in those Slope townships I listed, it must of been one or two companies that pulled out before exploration. That would be frustrating if they'd staked it out and set to drill and then leave. Good luck in the future on your acreage.

Since: Mar 11

Williston, ND

#405 Apr 2, 2011
Connelly wrote:
Any oil drilling companies interested in leasing 53 acres at Township 163 North, Range 95 West in Divide County?
Hello Connelly,

I can shop the acrea round if you give me the section and area descriptions...do you have it deeded in your name? I get offers for people on leases from different companies and direct them to you after I get offers and bids. I also can work on terms in those leases. No money is paid through me, but I do ask for a small fee to be paid for my time and work and stuff I do. If your interested you can email me through this site or at [email protected]

Thanks

Since: Mar 11

Williston, ND

#406 Apr 2, 2011
I also now have some interest from another company in areas of North Dakota 157 and most all ranges too. From Willistons county and south to Billings county line. Thanks

Since: Mar 11

Williston, ND

#407 Apr 2, 2011
OPPS that supposed to say in Williams county south to Billing County Line
ardis till

Byers, CO

#408 Apr 2, 2011
can you tell me, does a oil company slow down production on a well after a couple months and if they do, why do they do this? I have heard they can reduce the production amount by quite a lot--thanks for your help Ardis

Since: Mar 11

Bismarck, ND

#409 Apr 4, 2011
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

Since: Dec 10

Hurst, TX

#410 Apr 5, 2011
ardis till wrote:
can you tell me, does a oil company slow down production on a well after a couple months and if they do, why do they do this? I have heard they can reduce the production amount by quite a lot--thanks for your help Ardis
Production can fall off rather sharply due to natural causes. As the oil gas and salt water is produced from the well the pressure naturally declines. One of my wells produced 12,000 barrels of oil in the first month and 8 months later it can only produce 2,500. When pressure naturally falls enough they usually install a pump on the well. The oil co's do use what they call a choke on a well to prevent the oil/ water/gas coming out too fast. It's thought that a steady flow will give a better rate of recovery eventually. They don't want to choke it too much either, as some fear that choking too much may clog a well and reduce the eventual recovery.

Since: Dec 10

Hurst, TX

#411 Apr 5, 2011
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
The minimum to preserve your claim, so no one else can claim it would be the statement of claim. Better still, if you inherited the minerals there should have been a deed of distribution which would be your title to the minerals. If the will or estate was probated in another state it should be probated in N.D. also. Usually isn't a big deal, they open the probate read in the other states probate, close it and record the probate. You can also file an affidavit of heirship, that will allow lease agents to find you and will let you sign a lease and receive a bonus. The problem with the affidavit of heirship is it may not give the level of proof needed to receive your royalty. They will lease from you if they are 95% sure and they have to pay the signing bonus for the lease to be a valid contract, but they aren't going to pay you significant royalty without being certain you have clear title. Title work can be expensive and cost thousands of dollars, but it's your title and your responsibility. Probably alot more than you wanted to know, but the mineral deed in your name is best. The statement of claim is second best.

Since: Mar 11

Williston, ND

#412 Apr 5, 2011
If you have not leased in 20 years it is a VERY WISE IDEA to get them reclaimed before the surface land owner tries to claim them. Here a link to that form on the state of North Dakota website.

https://www.dmr.nd.gov/oilgas/statementclaim....

If they have been bought, leased, drilled, and etc this is not necessary. If you question meant what do you have to have to prove it that answer is a deed recorded in the court house of the county that the minerals are located it. They can be leased by you and still not be deed clear in your name so you have to watch that too. Most court houses in the western sector of the state will not have the time to do any helping in finding your deed but the smaller ones out side of Williston may help at times if you know what the section and range and stuff it is in and then what quarter and also it would make it easier for them if you knew when you got it. It would not take more then a few minutes for them when they have the time.

Hope that helps.

Since: Mar 11

Williston, ND

#413 Apr 5, 2011
Sometimes here in ND they slow production because alot of the new wells are having to have the oil hauled by trucks (semi)to a receiving station till there is amble wells to warrent a pipe line to that area. As you can imagine, there is I believe 171 wells being drilled this month alone and that takes alot of loads in trucks till pipe lines are laid. Most the wells here are pumped and they do not run all the time either, they are shut off sometimes during the day. The Bakken wells sometimes produce very highly at first and then slow as the oil has to seep towards the horizontal hole to be pumped out too.
Marge Wi

Janesville, WI

#414 Apr 5, 2011
A sybling that shared mineral rites with the rest of us syblings passed away. He was married with no children who will recieve his share of the mineral rites?

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