Oil leasing and drilling activity aro...
Terry

Omaha, NE

#488 Nov 25, 2009
Eliann wrote:
A neighbor has some property in McKenzie County:
152N, 100W and has been offered $300/ac and 1/6 royalty. What is the going rate? Should they ask for 3/16?
Thanks
What section might that be?
Henry

Omaha, NE

#489 Nov 30, 2009
Wednesday Nov, 25, 2009. Is that the last post. I posted a note & have not see it. What's up?
Has it not been updated?
Eliann

Houston, TX

#490 Nov 30, 2009
Terry wrote:
<quoted text>
What section might that be?
Section 10
Henry

Omaha, NE

#491 Nov 30, 2009
I am in the middle of negotiating an Oil & Gas Lease. It is in McKenzie County 160 acres. Terry from Bellevue -- you are most likely a neighbor I live in North Old Town. I really am hesitant to put my phone number on here, but if I did would you give me a call. You seem to be knowledgeable and I would appreciate any advice. My brother who always handled this passed away and I acquired a box full of files and an expired lease, so I am trying to lease it and do the right thing and I am a bit overwhelmed. Thanks.
Terry

Omaha, NE

#492 Dec 3, 2009
Henry wrote:
I am in the middle of negotiating an Oil & Gas Lease. It is in McKenzie County 160 acres. Terry from Bellevue -- you are most likely a neighbor I live in North Old Town. I really am hesitant to put my phone number on here, but if I did would you give me a call. You seem to be knowledgeable and I would appreciate any advice. My brother who always handled this passed away and I acquired a box full of files and an expired lease, so I am trying to lease it and do the right thing and I am a bit overwhelmed. Thanks.
I would not put my phone # here but if you are still interested in some help we could possibly meet at a restaurant such as Village Inn along Hwy 370 west of Hywy 75 next week sometime. Say 9:30 am next Tuesday. If you read this and want to do this let me know.
I can't guarantee I know everything about leasing but will try help you if I can.
Terry

Omaha, NE

#493 Dec 3, 2009
Terry wrote:
<quoted text>
What section might that be?
I don't know what is around that area as far as activity, but in general $300 is pretty fair but I would be asking for 3/16th and not 1/6. Also would not go over a 3 year term as 4 or 5 years is too long to tie up minerals.
Casey

Anaheim, CA

#494 Dec 15, 2009
Does anyone why there is no drilling taking place in Wildrose? We own about 50 acres in Wildrose and it has been bombed and tested and the oil is good. We signed with a company about 2 and a half years ago and we still have not had any action. Anyone else have the same problem?
Tony W

Kent, WA

#495 Dec 16, 2009
Anybody have any Info on Diamond Resources co.? Received a contract today on 160 acres in Burke county. They offered 250.00 an acre and 1/16 of the recovered oil. Any info would be greatly appreciated
Bonnie

Snellville, GA

#496 Dec 17, 2009
We have dealt with Diamond for several years. We were recently offered $150 an acre, but with 3/16 royalty. Think I would rather have the 3/16 with a lesser lease amt???
Terry

Omaha, NE

#497 Dec 17, 2009
Bonnie wrote:
We have dealt with Diamond for several years. We were recently offered $150 an acre, but with 3/16 royalty. Think I would rather have the 3/16 with a lesser lease amt???
Why a lesser bonus amount? I would be negotiating for $350 and 3/16th for 2 years. Have nothing to lose..and most of the time the MO will be surprised at what they can get. Just my way of thinking when it comes to negotiating a lease.
Verna

Bend, OR

#498 Jan 4, 2010
My two sisters and I leased our mineral rights in Feb 2008 to Petro-Hunt for $125 and acre.Our rights are in Mountrail county. Since then I have spoken to the land man and he said they have no intention of drilling on our land.We signed a 5 year lease. How dissapointing!We have never heard of Petro-Hunt and wonder if they can lease to other companies and we not know about it.We wish we would have known what we were doing and wonder what we can do now?
Ron

Prosser, WA

#499 Jan 5, 2010
Verna Happy Newyear, check on the NDIC web page , check the activity on the GIP map, then see who is working the area. Do a well search type in your sec/ range/ township . The web site will give you alot of info, its free , it just takes time . Im in Paterson,WA. Ron
The big Fish

East Hartford, CT

#500 Jan 5, 2010
Verna wrote:
My two sisters and I leased our mineral rights in Feb 2008 to Petro-Hunt for $125 and acre.Our rights are in Mountrail county. Since then I have spoken to the land man and he said they have no intention of drilling on our land.We signed a 5 year lease. How dissapointing!We have never heard of Petro-Hunt and wonder if they can lease to other companies and we not know about it.We wish we would have known what we were doing and wonder what we can do now?
Have you been paid for the lease? Petro-Hunt is a big company they might end up selling your lease to some other company. Dont give up you never know what might happen.
Billoutwest

Bend, OR

#501 Jan 8, 2010
Does anyone know of Slawsons experience with multiple fracture wells?
Originally we were offered a $250/acre bonus, 5 year 1/6th royalty by a landman from Williston (who we think was in the resell business), but after contacting a landman for Slawson we have negotiated up to $950, 4 year at 3/16th.
This is in Williams County next to Montana where state leases nearby just went for $1300 -$2400/ acre bonuses, 5 year 1/6th in the December auction.(We don't expect our land to get top dollar as it is Indian Trust.)
With some 2008 press about Slawson completing a well for just 3.1 million I don't know how they could do a horizontal - multiple fracture that cheaply.
Also, is Slawson planning ahead and laying out their horizontal wells where the 3 wells/section pattern can be implemented later or are they still doing diagonals across the section?
Billoutwest

Bend, OR

#502 Jan 8, 2010
Can anyone tell me how I could change my previous post to this:
Billoutwest wrote:
Does anyone know of Slawsons experience with multiple fracture wells?

With some 2008 press about Slawson completing a well for just 3.1 million I don't know how they could do a horizontal - multiple fracture that cheaply.

Also, is Slawson planning ahead and laying out their horizontal wells where the 3 wells/section pattern can be implemented later or are they still doing diagonals across the section?
ashlyn

United States

#503 Jan 24, 2010
i just inherited about 25 acres in divide county and a company named JB minerals is contacting us. i cant seem to find much info on their company. could anyone tell me if this company is any good?

Since: Jan 10

Bend, OR

#504 Jan 24, 2010
I don't recognize that name.
They could be acting on behalf of someone else or be a reseller of leases.

I would take my time and shop around.

The interest in ND is really heating up and you might find yourself signing for a figure 10 times what you are being offered now by waiting and being pro-active for just 6 months.

Don't just focus on the signing bonus.
Just a few years ago a 1/6th royalty was good then it was 3/16th now its 1/5 for the really desirable land.

Since: Jan 10

Bend, OR

#505 Jan 24, 2010
"We signed a contract with JB Minerals in September of 2007. Right before the 90 day draft was up, we received a "revision" to the contract which was under another 30 day draft. After the combined 120 days, we never received payment. Would not recommend doing business with JB Minerals."

I found this post elsewhere on this site.
ashlyn

Greeley, CO

#506 Jan 25, 2010
ok. thank you for your imput. i am totally new at this.

Since: Jan 10

Bend, OR

#507 Jan 25, 2010
Take a look at:
https://www.dmr.nd.gov/oilgas/
On the upper left menu look over:
Active drilling rigs
Confidential well list
and several of the other areas for what is going on in ND.
I do not see JB Minerals.
The GIS map server selection provides an interesting look at divide county and the rest of the state.
Find your location and establish contacts locally if possible. Know all of your immediate neighbors.
Time to vacation in ND this summer.
You are in no rush to sign.
Your best bet may be to sign a year from now.
The term landman generally can be associated with used car salemen or lawyers.
Not always bad but they can sell you a pretty smooth deal.
Now some of the landmen, who have worked their way up and are representing the bigger oil companies, can be just fine.
Two reasons:
1) Your research and seeking out the best company will almost assuredly get you a better bonus.
2) North dakota is really heating up and the Bakken and other explorations are more likely to generate keen interest than not.
=======
There is the possibility that your area may not have oil.
If you could know that, so signing for a large bonus may be the best move.
But don't forget that royalty, which would pay you the most money over the years with oil.
The yearly acreage rent is usually very small - a few dollars per acre.
Number of years is a big concern. Try for 3. Shorter leases indicate more of an intent to drill and they get you back into a new lease opportunity quicker if you got a bad deal the first time.
You do not want a company to lease and then resell that lease.
They take your money - for the bonus - in essence.
You do not want a company that wants to just tie up your land in a lease.
Lots of luck.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

North Dakota Discussions

Title Updated Last By Comments
News Sioux tribe leader wants political help to halt... Wed WeTheSheeple 103
News US Courts Strike Down Voter Restrictions in Sta... Aug 3 storm warning 2
News Workers Needed in North Dakota (Mar '06) Jul '16 BUDD PRESCOTT 379
News North Dakota's outsider candidate ready to tack... Jun '16 Hostis Publicus 3
News Ted Cruz looks for Wyoming sweep Jun '16 Hillary Sucks 3
If Hillary Elected, Putin Says He'll "Prepare f... May '16 TheMaskedTerror 1
News Flying High (Feb '16) Apr '16 Assfacehole Queer... 2
More from around the web