ND Oil and Gas Advice Column
Monica in Northern Cal

Livingston, CA

#167 Feb 21, 2010
We have mineral rights in N.D. Township 159 North, Range 103 West, etc, and have been offered a lease by Empire Oil Company. They want to give us $100. an acre for five years. Been reading on them, seems they may be leasing, then selling their leases to bigger fish? Is this true? Or are they actually drilling, themselves? Also, the lessor said we would get 1/6th or every sixth barrel of oil, but if they are not drilling but passing it on to the next folks, what the heck??? Regarding the 1/6th we were promised on the phone, still, the documents constantly mention 1/8th, is this company on the up and up??? thanks!

Since: Feb 09

mpls, minn

#168 Feb 22, 2010
Big Fish...Thanks for all your help, just this now...I've had royalties coming now for about a year and it is dropping off some but still quite good to me. I would like to ask at what point is it decided that the production is not enough to bother with and what happens then? Do they cap it off..can the well so to speak 'recharge' with oil again..or are they just finished with it or what? I guess I'm asking what is the average life span of a well? Mine is in Mckenzie county 150N 96W Sec18. Thank you very much!!
The Big Fish

United States

#169 Feb 23, 2010
bert 80 wrote:
Big Fish...Thanks for all your help, just this now...I've had royalties coming now for about a year and it is dropping off some but still quite good to me. I would like to ask at what point is it decided that the production is not enough to bother with and what happens then? Do they cap it off..can the well so to speak 'recharge' with oil again..or are they just finished with it or what? I guess I'm asking what is the average life span of a well? Mine is in Mckenzie county 150N 96W Sec18. Thank you very much!!
Well When the well isnt profitable anymore to the company that owns it. Every company has a different profitability. Usually, the well will be bought and sold several times during its life. A normal well's life is 20-100 years. Most likely it will be closer to 20 years. After the well isnt profitable to any company then the well has to be plugged.
virgil

Redmond, WA

#170 Mar 6, 2010
I have a family of 158 dividing 120 acres I hold 0.025512 acres at a fraction 1/8 that can change 3/16 in each and every instance at a cost of $150.00 per net mineral acre can you give me a rough owhat im looking at thank you
The Big Fish

Punta Gorda, FL

#171 Mar 8, 2010
virgil wrote:
I have a family of 158 dividing 120 acres I hold 0.025512 acres at a fraction 1/8 that can change 3/16 in each and every instance at a cost of $150.00 per net mineral acre can you give me a rough owhat im looking at thank you
Say What? can you resend what you have? I cannot understand whether or not you have a 3/16 interest or 1/8th?
Dahlerz

Fredericksburg, VA

#172 Mar 10, 2010
Hey Big Fish,
We own mineral rights for 600 acres of a 1280 acre spacing unit. The well is not on our land but within the two sections. We have a lease with a company for 1/7th royalties. The question: When royalties are paid how will the equation work? Are we entitled to 1/7th of 47% of the bopd even though our agreement is with a company that did not drill nor was the well on our portion of the spacing unit? Thanks for any insight.

Since: Mar 10

Location hidden

#173 Mar 11, 2010
Greetings Big Fish
First off, thanks for all the good info you post here.
The family has signed with Empire Oil in late Feb. Empire guy stated he thinks drilling may start late this year, and from one of your previous posts, I think you indicated that if they strike oil on Jan 1, we might see a check by the fourth of July.
Williams County
Township 158 North, Range 97 West
Our portion is about 50 Net Mineral Acres /600 Gross Mineral Acres
Champion Wheelock Prospect
The Empire guy said that since it has a "Site" number (10) it appears they (AOG) are serious about drilling soon.
Does that sound realistic to you? Anything else you can seein your crystal ball?
Again, thanks for your insight.

Since: Feb 09

mpls, minn

#174 Mar 15, 2010
Hello Big Fish...One more question for you; If when drilling a new well they find that they have a 'dry hole' do they still wait until the end of the 6 mo. confidential status to report it? Thank you very much and thanks for all your help with my other questions too!
The Big Fish

Lebanon, VA

#175 Mar 16, 2010
bert 80 wrote:
Hello Big Fish...One more question for you; If when drilling a new well they find that they have a 'dry hole' do they still wait until the end of the 6 mo. confidential status to report it? Thank you very much and thanks for all your help with my other questions too!
They might most of the time not but they might do it and try and unload or sell their acreage before publishing the 6 months are up.
The Big Fish

Lebanon, VA

#176 Mar 16, 2010
fox2 wrote:
Greetings Big Fish
First off, thanks for all the good info you post here.
The family has signed with Empire Oil in late Feb. Empire guy stated he thinks drilling may start late this year, and from one of your previous posts, I think you indicated that if they strike oil on Jan 1, we might see a check by the fourth of July.
Williams County
Township 158 North, Range 97 West
Our portion is about 50 Net Mineral Acres /600 Gross Mineral Acres
Champion Wheelock Prospect
The Empire guy said that since it has a "Site" number (10) it appears they (AOG) are serious about drilling soon.
Does that sound realistic to you? Anything else you can seein your crystal ball?
Again, thanks for your insight.
WHo knows???
The Big Fish

Lebanon, VA

#177 Mar 16, 2010
Dahlerz wrote:
Hey Big Fish,
We own mineral rights for 600 acres of a 1280 acre spacing unit. The well is not on our land but within the two sections. We have a lease with a company for 1/7th royalties. The question: When royalties are paid how will the equation work? Are we entitled to 1/7th of 47% of the bopd even though our agreement is with a company that did not drill nor was the well on our portion of the spacing unit? Thanks for any insight.
well yes 1/7 of 47% times how many bbls of oil per day times the oil price minus about $18 per bbl.
Lowe

Wheeling, WV

#179 Mar 24, 2010
yes
Lowe

Wheeling, WV

#178 Mar 24, 2010
Diamond Resources has leased our land up by Westhope, ND. Well they let us know when they are going to start drilling?
the big fish

Brooklyn, NY

#180 Mar 25, 2010
Lowe wrote:
Diamond Resources has leased our land up by Westhope, ND. Well they let us know when they are going to start drilling?
No they will not...you wont know anything unless you drive up there. At least not until, later on. If the well comes in and they make a well out of it then they will send you a division order which basically says that you own the above mineral interest. Then after that within about 60 days on average you will get a check.
Susan Johnson

Fargo, ND

#181 Mar 26, 2010
I have half the mineral rights to land in section 15 of township 160, range 80 the southwest corner in Bottineau county near Newburg. Can anyone tell me what the status is of leases being taken out or drilling going on in that area. I, currently, have a lease with Diamond Resources through 2012. Thanks.
Krazy Kat

Colorado Springs, CO

#182 Mar 27, 2010
I'm seeking somne advice.

I own 1/192 of the oil and gas rights to a 556 acre tract in Township 152 North in McKenzie County, North Dakota. Three years ago I signed a lease with Diamond Resources in Williston, and drilling has been taking place in four locations. The lease has paid $3100 over the three years, although in recently the royalties are about $40 per month.

Today I received an offer from Bridgepoint Mineral Axquisition Fund, LLC in Oklahoma City to buy my interest for $600 per acre. If my math is correct I would receive about $1700.

Any opinions as to whether this would be a prudent transaction for me would be appreciated.
L Neer

Klamath Falls, OR

#183 Mar 27, 2010
To the big fish. What do you know about sec 11 T149 R101? This is the Antelope creek field. I have mineral rights there. Just leased by Diamond Resources
O Norheim

Norway

#184 Mar 31, 2010
Hey Big Fish,
what can you tell me about 17/20 162n 99w,
its near Crosby,Nd.We have oil/gas right out there,
is it any drilling in that eria,what is a good offer for leasig out
Thanks for your insight

Olav Norheim
Telemark
Norway
Ron

Dickinson, ND

#185 Apr 3, 2010
South of Newburg has not been a place for oil drilling. A well was drilled south of Newburg some forty years ago about five miles south and three or four miles east. It was dry.

further south of Newburg and east of Glenburn is different.

The Bakken shale depocenter is north of Newburg and up to the Westhope/Souris area.

Although, the average lease in Bottineau County is in the neighborhood of 150 per acre, there are some that are higher and one sold for 1.000 per acre. The Nov 2009 lease auction has the information.

http://www.land.nd.gov/ , go to 'oil and gas lease auction results', click on 'complete sale results by sale date', choose Nov 2009 sale results, scroll down to Bottineau County to view the sale results.
The Big Fish

Brooklyn, NY

#186 Apr 27, 2010
Susan Johnson wrote:
I have half the mineral rights to land in section 15 of township 160, range 80 the southwest corner in Bottineau county near Newburg. Can anyone tell me what the status is of leases being taken out or drilling going on in that area. I, currently, have a lease with Diamond Resources through 2012. Thanks.
Dont have a clue...

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