We would like to lease 10.2 acres of minerals in Billings Cty. Township 139-100, Range 100 West, Section 14, NE4. Have been offered $1500/acre, 5 yrs, 18% royalty. Is that a fair number for this area? I have heard $2500/acre further north.
Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said:
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Jerry Beak said:
Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
We have 3 producing wells in Sec 13, but only getting .117188% interest in the oil. We must be on the fringes of the well areas. It still gets us about $1200 a month so it seemed to me that the total production was much , much higher if we are only getting .117 interest. We know nothing about oil. We have the minerals from our grandfathers farm.
Jerome Anderson said:
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Jerry, .117 is more than 1/10th of the entire wells production. I presume that you had .117 before multiplying by your royalty interest.
How many acres of Section 13 did you lease for the approximately $1,200 a month with your .117188% interest? My family acres are in Section 12 wells which are on the confidential list so we have not received any royalties yet. Can you see on the NDIC production records anything for Sec 12, T139, R100? You say Whiting moved their drilling rig for poor production...what Section had the poor production?
Jerry Beak said:
We have 3 producing wells in Sec 13, but only getting .117188% interest in the oil. We must be on the fringes of the well areas. It still gets us about $1200 a month so it seemed to me that the total production was much , much higher if we are only getting .117 interest. We know nothing about oil. We have the minerals from our grandfathers farm.
Jerome Anderson said:
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Those wells drilled from section 13 aren't barn burner wells but I think it would be early yet to say they will not be profitable.
Jerome Anderson said:
Those two Whiting wells have been producing for about 3 1/2 years each and the cumulative oil production is 38,000 barrels of oil and 45 MMCF gas/well. At, let's say, a net oil price=$100 X 0.8125(WI) X 0.90(taxes) =$73.13/barrel and net gas income of $3.00 X 0.8125 X 0.90 = $2.19/mcf , Whiting has made $2,877,469 not counting operating costs, unusual repair expenses, marketing fees, etc. At an average cost to drill at around $9,000,000/well, the company has achieved only 31.97% payback from its investment in 3 1/2 years. Usually economists consider that a 3 to 4 year payout on development costs is necessary in order to obtain a decent rate of return.
I doubt that Whiting will ever get their money back on these two wells.
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Right---we have .00117188 decimal interest.
r w kennedy said:
Jerry, .117 is more than 1/10th of the entire wells production. I presume that you had .117 before multiplying by your royalty interest.
We have 10 acres in 139-100-14, 20 acres in 139-100-13 (where the wells are) and 120 acres in 138-100-34. Does anyone know if there is anything going on down in township 138?
Jerry
Jill said:
How many acres of Section 13 did you lease for the approximately $1,200 a month with your .117188% interest? My family acres are in Section 12 wells which are on the confidential list so we have not received any royalties yet. Can you see on the NDIC production records anything for Sec 12, T139, R100? You say Whiting moved their drilling rig for poor production...what Section had the poor production?
Jerry Beak said:We have 3 producing wells in Sec 13, but only getting .117188% interest in the oil. We must be on the fringes of the well areas. It still gets us about $1200 a month so it seemed to me that the total production was much , much higher if we are only getting .117 interest. We know nothing about oil. We have the minerals from our grandfathers farm.
Jerome Anderson said:
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Jerry, if there is any way to find production from those wells in section 12, it's going to be through General Statistics tracking sales on the NDIC site, free to use. It's tedious to look for sales in General Statistics and the reported sales usually runs 6 weeks behind, but that is where you find sales from confidential wells if oil has been sold.
Thanks for the info.
r w kennedy said:
Jerry, if there is any way to find production from those wells in section 12, it's going to be through General Statistics tracking sales on the NDIC site, free to use. It's tedious to look for sales in General Statistics and the reported sales usually runs 6 weeks behind, but that is where you find sales from confidential wells if oil has been sold.
I looked at the GIS Map on the ND DMR (Dept. of Mineral Resources web page) there does not appear to be any current activity in the area around 138-100-34.
Jerry Beak said:
We have 10 acres in 139-100-14, 20 acres in 139-100-13 (where the wells are) and 120 acres in 138-100-34. Does anyone know if there is anything going on down in township 138?
Jerry
Jill said:How many acres of Section 13 did you lease for the approximately $1,200 a month with your .117188% interest? My family acres are in Section 12 wells which are on the confidential list so we have not received any royalties yet. Can you see on the NDIC production records anything for Sec 12, T139, R100? You say Whiting moved their drilling rig for poor production...what Section had the poor production?
Jerry Beak said:We have 3 producing wells in Sec 13, but only getting .117188% interest in the oil. We must be on the fringes of the well areas. It still gets us about $1200 a month so it seemed to me that the total production was much , much higher if we are only getting .117 interest. We know nothing about oil. We have the minerals from our grandfathers farm.
Jerome Anderson said:
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
Thanks. I will try to look at the ND website and figure out how to use it.
Jill said:
I looked at the GIS Map on the ND DMR (Dept. of Mineral Resources web page) there does not appear to be any current activity in the area around 138-100-34.
Jerry Beak said:We have 10 acres in 139-100-14, 20 acres in 139-100-13 (where the wells are) and 120 acres in 138-100-34. Does anyone know if there is anything going on down in township 138?
Jerry
Jill said:How many acres of Section 13 did you lease for the approximately $1,200 a month with your .117188% interest? My family acres are in Section 12 wells which are on the confidential list so we have not received any royalties yet. Can you see on the NDIC production records anything for Sec 12, T139, R100? You say Whiting moved their drilling rig for poor production...what Section had the poor production?
Jerry Beak said:We have 3 producing wells in Sec 13, but only getting .117188% interest in the oil. We must be on the fringes of the well areas. It still gets us about $1200 a month so it seemed to me that the total production was much , much higher if we are only getting .117 interest. We know nothing about oil. We have the minerals from our grandfathers farm.
Jerome Anderson said:
Jerry Beak said:Thanks for the info. We countered for $1800 and 3 yrs. Will see how it turns out. Why do you think the two Whiting wells will not be profitable????? Jerry
Jerome Anderson said: I signed up to access the NDIC's basic services and have downloaded the oil and gas production records. Also, I've been a petroleum engineer for 44 years, well accustomed to determining reserves and economics.Whiting drilled two offsets to our minerals and had a well permitted on our tracts. They moved the drilling rig away from the area due to the poor results before drilling ours next.
Jill said:
"Try to get a higher royalty, at least 20% and ask for a 3 year lease instead of the 5 years. Whiting Oil has been drilling in that general area with recent wells on Sections 12 & 13 in T139 R100. Of course a higher dollar amount up front is desirable, but if a well goes in you are locked into the Royalty you sign forever and the amount you got per acre becomes less of an issue. Who is the leasing company?"
I agree completely. My family minerals offset the two Whiting wells you mentioned. I don't think the two wells will be profitable for Whiting.
Our leases will be up for renewal this July and we're going to ask $1500/acre and 20% royalty on a 3 year lease.
Jerry Anderson
My family was just contacted by Whiting in regards to Section 1 -139-100 near railroad right of way x Sect 12 (deed description has always been confusing so I didn't realize to consider we had mineral rights in section 1, I thought it was only 12) for the two producing Jurgens wells. Obviously, they are lagging because we have a mineral owner code and they were not paying out royalties without a division order signed by the new heir (and finally verified through a title opinion search long overdue). I appreciate both Jerry and Jill's comments on terms, we have .00117 also; lease expires December 2014 and I am very nervous that we will be lowballed on new lease offer. Mr. Kennedy, can you comment on lease renewal payments if existing wells are producing? If we got $20K 5 years ago with no wells, might the lease be double, or a certain multiplier per each producing well? Jerry, did you "counter" on your own or hire an attorney? My grandmother used to just slash through the percentage and put what she wanted with her initials (I have seen it on recorded documents) but I do not know if this is the best way to do that nowadays. Thanks
Ms. DeBell, there have been 3 wells spud in section 12 and I think at least one will be draining your minerals and your current lease will be held by production so you will not be able to lease those minerals again, probably for decades.
Hello Tracey, I also received my Acres from my Grandmother. Sections 1 & 12 have been combined as a spacing unit for oil drilling purposes, all mineral owners in both sections will be receiving royalties. Whiting has been in production on the 2 Jurgens Wells since August. The last lease signed set the terms for your Royalty %. There is a 3rd Well that shows up when searching for Sect. 12 but that Well is actually on Sect. 13. Signing the Division Order begins monthly royalty payments which last as long as the wells are producing oil. You mention the title opinion, did Whiting provide you a copy of this? My family has questions concerning the Railroad Right of way but I have had no luck trying to find when the Railroad actually had any rights to the Mineral acres.
no, they did not provide a copy of the 250-page document which they referenced, and I do not know what firm prepared it for them. I do not think the railroad ever had rights; they have been in my family since 1951 when they were initially sold. I will post once I get additional information.
Jill said:
Hello Tracey, I also received my Acres from my Grandmother. Sections 1 & 12 have been combined as a spacing unit for oil drilling purposes, all mineral owners in both sections will be receiving royalties. Whiting has been in production on the 2 Jurgens Wells since August. The last lease signed set the terms for your Royalty %. There is a 3rd Well that shows up when searching for Sect. 12 but that Well is actually on Sect. 13. Signing the Division Order begins monthly royalty payments which last as long as the wells are producing oil. You mention the title opinion, did Whiting provide you a copy of this? My family has questions concerning the Railroad Right of way but I have had no luck trying to find when the Railroad actually had any rights to the Mineral acres.