Oil leasing and drilling activity around the McKenzie County area

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dave

Westmont, IL

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#1239
Sep 1, 2011
 
Any updates on oil drilling in Golden Valley county. Have rights to 16o ac. do see alittle activity but wondering why area is slower than others Thanks
charles

Jefferson, TX

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#1240
Sep 1, 2011
 
Dave:
I believe that Whiting Petroleum is currently involved in drilling several wells in this county. You might google, "Big Island Prospect" as this is what Whiting is calling their operation in GV. You might want to go to their website for additional information.
dave

Westmont, IL

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#1241
Sep 1, 2011
 
charles wrote:
Dave:
I believe that Whiting Petroleum is currently involved in drilling several wells in this county. You might google, "Big Island Prospect" as this is what Whiting is calling their operation in GV. You might want to go to their website for additional information.
Thank you Charles

Since: Aug 11

Bismarck, ND

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#1242
Sep 5, 2011
 
Brent W wrote:
I'm only making an assumption, so please anyone correct me if I'm wrong. I made this mistake early on when i received my mineral rights. There is a difference between what your deed says you own and what you actually own (sometimes not always). If your getting offers, they usually have done the research and know the NET acres you own rights to. The deed reflects the Gross Acreage but you actually only own the NET acreage. Common practice was that at one time a family owned 120 Acres but through death or other events that 120 acres get carved up and you end up owning only 10 acres of Net acreage of the 120 Gross acreage. Confusing I know, my family had a land man go to the court house and verify what we actually owned in NET acreage. Now to your question.
Here's an example of the math.
Net Acres/size of spacing unit x royalty % equals barrels for you out of every 1000 barrels
(36.8 / 1280) x .1875 = 5.39 barrels for you out of every 1,000 produced (Repost from BilloutWest)
the 1.59505%, I believe is the Total hectares leased divided by total hectares in the spacing unit. I can't figure out if you own 1 acre or 10 acres, nor do i know if your in a 640 acre pool or a 1280 acre pool
As far as the 3 year lease with 20% royalty, that is great, and is the becoming the norm it seems depending on where you property is. My lease is up in October and it was signed 3 years ago for only 16.5% royalty. The signing bonus is nice, and I curious what the three offerors are giving you for the bonus, but the royalty percentage is the most important thing. Lastly, You will probably get many offers to sell you mineral rights, DON'T do it. Focus on the long term gain not the short term satisfaction.
Best of Luck, hope I didn't confuse you.


If you are interested in releasing your minerals in October, let me know. 3 years and 20% with a fair bonus depending on the location.
charles

Longview, TX

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#1243
Sep 6, 2011
 
Garett701:

Just curious about two things; First, who are you working for (broker; operator direct) and what do you consider a fair bonus (say for Williams County; all sections). Most of Western counties are currently leased with many leases nearing expiration dates. Additional information about who you are would be helpful.

Since: Aug 11

Parshall, ND

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#1244
Sep 6, 2011
 
charles wrote:
Garett701:
Just curious about two things; First, who are you working for (broker; operator direct) and what do you consider a fair bonus (say for Williams County; all sections). Most of Western counties are currently leased with many leases nearing expiration dates. Additional information about who you are would be helpful.
Charles, I work for a brokerage out of Bismarck, ND by the name of Sundance Oil and Gas, LLC. As for our direct big client, that information I can't give out at this time. We have drilled numerous wells in the Bakken with good production results. As for a for Williams county "ALL SECTIONS" ...that of course depends...but it would be safe to say $800 per acre. Where are your minerals located in Williams?

Since: Aug 11

Parshall, ND

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#1245
Sep 6, 2011
 
Stan wrote:
Where can I find a list of landsmen that are leasing minerals, our family have property in Dunn County west of Dodge and will be seeking to release in late august and we have numerous acres? Could anyone tell me what the going rate is in that area per acre?
Thank you
Stan, my company Sundance Oil and Gas is currently leasing acres in Dunn County. Please feel free to email me at garettmccabe@gmail.com
charles

Tyler, TX

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#1246
Sep 7, 2011
 
Garett701:
Our ND mineral acreage is located in T157N;R103W;Sections 29 and 31 but the leases are not due to expire July and September of 2012. Currently, this acreage is temp. spaced and several wells have been drilled or permitted in the area (adjoining sections).
jimo

Fargo, ND

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#1247
Sep 7, 2011
 
Has anybody sold mineral rights in McKenzie County and what kind of price did you get
kennedy 817

North Richland Hills, TX

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#1248
Sep 7, 2011
 
Jimo, it depends on location, whether you are leased, what the terms of the lease are if you are leased and how close to expiration the lease is, how likely the lease is to expire before drilling, are there wells very close to you that are good or poor producers. Alot of variables. If you are unleased, I'd say lease it rather than sell. If you are leased and dont absolutely have to have the money now, I'd wait and see if you could lease it again at a higher rate when your lease does expire. Do a lot of research and good luck with your descision.
charles

Tyler, TX

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#1249
Sep 7, 2011
 
Jimo:
Are you talking about selling or leasing mineral rights? I hope you are referring to leasing as selling would be a different ballgame.
jimo

Fargo, ND

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#1250
Sep 7, 2011
 
Has anybody received offers to buy their mineral rights? What kind of offers are out there?
charles

Tyler, TX

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#1251
Sep 7, 2011
 
jimo:
I have recieved offers to sell my minerals on several occasions. I immediately ignore such offers as this is only companies wanting to purchase minerals for amounts far less than their actually worth. I checked this out with two offers several years ago and quickly learned that these companies were out to find individuals who had very little knowledge about their minerals and their worth. I'm not telling everyone not to sell but first do your homework to learn the value of these minerals and explore all the avenues such as leasing, etc. where you will most likely profit in the long run.
Travis

Moline, IL

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#1252
Sep 7, 2011
 
I recently recieved an offer from diamond rescources for a inherited amount of land in divide county. The offer was for 500 an acre and 17.5% royalty. I have not talked to a lawyer yet but i am planning on it. Does this sound reasonable?
Billoutwest

Bend, OR

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#1253
Sep 7, 2011
 
Travis;

With regard to your lease offer.

Check out the states auction page for what is near you.

http://www.land.nd.gov/

then Minerals Management Division

then State Oil & Gas Lease Status

then Legal Description

and figure out what oil leases are going for near your section.

==========

The numbers you list sound low, but they may be what the price is in your neighborhood.
charles

Tyler, TX

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#1255
Sep 8, 2011
 
Travis:
I agree with Billoutwest in that further research on your end needs to be conducted before making a final decision. I would think that your area would bring in the neighborhood of $800 -$1000/acre with a 20% royalty for a 3 year lease. These bonuses could be higher depending on the area in Divide County and the proximity to existing wells. You can go to the Eser website and plug in your mineral description and see what wells are near you.
kennedy 817

North Richland Hills, TX

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#1256
Sep 9, 2011
 
Travis, I'd be very careful dealing with Diamond. I hope you have a statement of claim on file. I also recommend that you solicit other offers from different companies that have leases or are drilling near your minerals.
daphneva

Bremerton, WA

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#1257
Sep 9, 2011
 
Does anyone have any information on a broker named Gramson out of Billings? My folks are dealing with them and I'm curious. Thanks!
EllyM

Williston, ND

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#1258
Sep 9, 2011
 
Travis wrote:
I recently recieved an offer from diamond rescources for a inherited amount of land in divide county. The offer was for 500 an acre and 17.5% royalty. I have not talked to a lawyer yet but i am planning on it. Does this sound reasonable?
I am writing to say I think anyone offering $800 to $1000 is way too low. Divide, Williams and McKenzie County are "hopping" and they know there is oil there.
We have received $2000 per acre bonuses in Williams County very recently and 20% royalty...within the past 5-6 months on some pretty small parcels. I know others are getting even more in McKenzie County for leases. If you are going to take that low of a lease payment, make sure it's a short lease and a high (20% or more) royalty. Watch the Pugh Clauses too...they should not include any add-ons statements.
charles

Tyler, TX

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#1259
Sep 9, 2011
 
EllyM:
What Township/Range are the minerals you leased located in? I have minerals in T157N;R103W near the Montana border and they will be expiring in June of next year. I am guessing your minerals are located to the East of mine, near alot of drilling activity. If I was offered $2000/acre with a 20% royalty for mine, I would jump at it. I look for some top leasing activity to occur in this area in the near future as all of these leases began expiring about the same time.

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