Hi I have mineral rights in Mackenzie county and am thinking of selling but I have received a few completely far off offers some really high and some really low the well is producing oil and I have been getting checks monthly for a couple years now Is there something I don’t know that they know?
Rebecca, there is alot of infil drilling, that is drilling of multiple more wells per spacing going on in McKenzie county. I am going to try to google search your well to find the legal description so I can give you some firm information. If it's 152-96-5 you are about to have 2 or 3 more wells and your top offer is probably rock bottom and the low offers are jokes.
Thank you its 31-5h if that helps
Bingo, it's you. 239,767 bbl oil in 3 years 4,588 bbl oil in May. Does not even have a pump on it yet and you have 2 wells drilling right now and another one planned. I would hold onto it, it's a great area and with 4 wells paying you from it, you might lose interest in selling. But you know your situation best. There is also a virtual certainty of more wells in the future, but nobody can say when. Congratulations.
Wow thanks that helps a lot my percent is 0.00552455 I got a offer for 230,000 it that reasonable? I will hold off if its in my best interest
Reality is you never know; sometimes things come crashing down; a friend had a well that has been putting out a lot of oil to the point of NOT ever using any savings in their retirement; suddenly last month they got $17 and the well was shut down and will need Re-fracing and they have been told as long as one year to get to it....it is why oil IS speculation at its purest form..........
I am going to make some rough assumptions. I presume that you have 30 to 35 net acres. Your spacing was originally 2 section but it has changed from 2 section 1280 to 4 section 2560, so there will probably be alot more wells in the future but you will be paid half as much because the royalty will be diluted in the larger spacing. If it is all drilled to the same extent you should eventually receive the same amount of money either way. Taking all that into account, I would say that it is not a bad offer, but I think you would make more money keeping your acres over the long haul.
If you need to sell, can't wait for the wells being drilled to start producing, I would say only sell as much as you need to, preferably to a family member.
Reasonable, who is to say what is reasonable? I was recently offered $10,000 per acre in an area close to you and that I consider no better than your area and possibly not as good. I think they are offering an amount that they expect to make back in less than 7-10 years and profit greatly for many years after that. I wouldn't be looking to cash out if I didn't have to. Good luck with your decision.
Ps, One might say with the doubling of the spacing size along with the increase of possible wells, your risk is spread, alot farther than someone with a single well.
rebecca tillis said:
Wow thanks that helps a lot my percent is 0.00552455 I got a offer for 230,000 it that reasonable? I will hold off if its in my best interest
We actually have 200 acres and we are in a pool but the 200 acres there are 14 of us if that makes a difference
I would love the company name that offered you 10,000 an acre if possible thanks again 
I assume that the $230,000 is for the whole 200 acres; this is about what these companies pay. I have had a few companies contact me and I replied to one and my acreage was next to a new medium producing well section and was offered $1,000 an acre. I told them that the going rate where I was was 3-5,000 an acre and I would want a minimum of 3,000 and never heard from them again. I was really trying to "appraise" my acreage which is a very iffy business in the Bakken, but Financial Planners like those figures to know net worth and values. With the possibility of 48 wells per twin section in ND, that is making it even more iffy!! A 26 acre interest could have its own well in dollars!!
So is your well producing also?
The acreage I was marketing to them did NOT have a well on it yet(It had one in the application phase) I also own 70 acres of the well next door but I didn't tell them that. If they can buy mineral rights for $1,000 an acre or less, than that is how they pay such high returns on their investments. I have been offered stock in these companies and some are making 30% on their money! Two sides to every investment!!
Rebecca,
When looking at selling prices, don't forget your Uncle. You will pay him a lot of money when you reduce your production risk by selling. Compare you production income after tax that you are happy with and have your accountant tell you how much you must invest after Uncle takes his share to maintain that desired income. Not only will the big offers/acre greatly diminish but you will have just changed one risk for another . Everybody's use of production or sales income and tax base is different. You must decide for your self but don't take a deal with knowing how much you will share with your favorite uncle. That is income management. Uncle loves it when you sell to another individual because he gets a big bonus and still maintains his share of your old income.
Rebecca, I will PM it to you, since you asked. Check the upper right where your name is and where it says friends.
Rebecca, I was working backwards with your decimal interest from a nominal 1280 spacing. If you had a net of 200 acres your decimal would have been larger than 0.00552455.
Thanks everybody all this info I got is great
Hey r w kennedy I tried to pm you but couldn’t figure it out the number you gave me is a personal phone number is that right?
Rebecca, there should be a small letter icon at the bottom of my posts that you can click on to PM me. I don't vouch for the person or business in any way and I would not have given you the contact info had you not asked for it. It is just an unsolicited offer I received.
Rebecca, check your inbox under your name at top right.