Hello All,
Just wondering what kind of lease bids are offered lately in Daniels County.
I have 640 acres just West of Whitetail and was offered $150 p/acre and 13%.
Based on the local chatter on these boards the rescent activity may be spill over
from the ND Bakken.
Comments/Suggestions?
John, I am not in NE MT and can only pass along what I've heard...
For now, some think the eastern end of Daniels Co might be in the bakken play. Though that is far from certain. So your offer of $150 does not sound unreasonable. Yet 13% is quite low. If you decide to lease now, counter offer by asking for a 3 Year Lease, with $250/ net acre, and 3/16th royalty (18.75%). If the company is interested they will try to meet you in the middle (somewhere between $150 to $250, and 13% to 18.75%). If you're content with $150 then take that, but insist on at least 1/6th or better on the royalty.
The other option is wait to see if rates rise in the future. If drilling marches towards the county, you might realize significantly better offers in the future. However my best guess is that would be at least two years from now (if ever). Good luck on your decision
Hi,
We own the mineral rights to 1,000 acres and we were offered the same thing from Shale Exploration. We have a friend who works for BP and he said we should pass on the offer and go with a larger company. $150/acre for 5 years is a pretty bad deal considering how much oil we are sitting on.
Thanks Greg for the reply. Shale Exploration told us today that their offer Was FIRM. Don’t know if the gentleman knew What he was doing or not. Where is your property? Ours is just west of Whitetail.
John,
I don't actually live in Montana, but I was fortunate enough to have inherited this property. The land is about 10 miles northwest of Flaxville. I spoke with a couple of the folks at Shale Exploration and I got the impression they are a relatively small outfit and I wasn't real confident the woman I spoke with knew what she was doing. Our attorney is handling it for us now, but apparently there are several larger oil companies who are interested in our land. We are not going to jump on this offer from Shale.
Thanks for your input Greg.
It gives me more reason to vote no with
My other family members.
I only hold 10%.
Would you email me the name of your attorney?
to [email protected]
Greg Bentley said:
John,
I don’t actually live in Montana, but I was fortunate enough to have inherited this property. The land is about 10 miles northwest of Flaxville. I spoke with a couple of the folks at Shale Exploration and I got the impression they are a relatively small outfit and I wasn’t real confident the woman I spoke with knew what she was doing. Our attorney is handling it for us now, but apparently there are several larger oil companies who are interested in our land. We are not going to jump on this offer from Shale.
Sorry typo [email protected]
Hi John,
I hate to say it, but I do not know the name of the attorney, as my brother (who lives in Wyoming) has been handling most of the work. I am out on the East Coast, so I have not been as involved as I should be. There are eight of us who inherited this property and I am probably the farthest removed- mostly due to where I am located. I will find out the name of the attorney from my brother and will email you with his contact info.
Thanks Greg,
That would be greatly appreciated.
I hate to say it, but I do not know the name of the attorney, as my brother (who lives in Wyoming) has been handling most of the work. I am out on the East Coast, so I have not been as involved as I should be. There are eight of us who inherited this property and I am probably the farthest removed- mostly due to where I am located. I will find out the name of the attorney from my brother and will email you with his contact info.
John, I sent the information to you. Check your Inbox and Spam folder in case it got in there. T
I got it. Very interesting reading. Forwarded it to other family members. Thanks
John, I sent the information to you. Check your Inbox and Spam folder in case it got in there. T
John,
We just concluded out lease with similar terms. However the amount offered is dependant upon the acerage also. In our case we had over 1400 acres to negotiate with. Take a look at my last post on the thread about credible lessees.
Take Care,
Tripp
Has anyone heard of a company called Open Range Ventures LLC? I would appreciate hearing of any and all experiences folks have had with them.
Thanks
Hi John, My name is Desiree Dickman, my husband is 3rd generation to Whitetail and currently still own a home there. Have you heard of Summit Exploration? John Ely is part owner of this company and he has a tremendous amount of knowledge in the G&O industry. He has drilled over 100,000 wells in his lifetime. His company has 70 petrolium engineers and they are currently working with other people in Daniels & Sheridan Co. If you Google John Ely & Associates, you can read about him and what he is doing with fracking (its amazing) and some of his other areas of expertise. I was very impressed. I'm confidant you wouldn't be disapointed if you look into what Summit Exploration has to offer.