Anyone with knowledge of 556 SKYLINE INVESTMENTS LLC or Bakken Assumption LLC?
ND State Lease Auction was held yesterday the 5th.
Many parcels listed for Slope County, with less than exciting bonus rates paid. Good for the oil companies, not so good for the mineral owners within those areas, to get a nice bonus if a lease gets offered at all.
The majority of parcels were bid by Pacer/Marathon; and 556 SKYLINE INVESTMENTS LLC. I have no idea which company they were representing. A handful of other companies, Empire Oil, Bakken Assumption LLC, White Butte Resources. I've never heard of Bakken Assumption either.
Snues, The bonus’ paid were pretty low. However, if you look at Aug 2012, the biggest bonus was 51.00. So, we’re headed in the right direction. Slope just needs a little more time.
Yes, The August 2012 was disheartening for Slope mineral owners.
On another site, there was a link to the 556 SKYLINE INVESTMENTS LLC. It's located in Phoenix, but I didn't find anything else about it. Still nothing about the Bakken Assumption.
Does anyone know the going rate for slope? Snues said:
Yes, The August 2012 was disheartening for Slope mineral owners.
On another site, there was a link to the 556 SKYLINE INVESTMENTS LLC. It's located in Phoenix, but I didn't find anything else about it. Still nothing about the Bakken Assumption.
Joshua, there is no going rate for the county of slope. In the northeast corner, the Bakken production is good to better and will command higher prices if it's not already HBP. Other parts of the county may be productive in the tyler or red river, nobody has made a really concerted effort yet with such a huge amount of nearly can't miss Bakken in nearby counties, but they are starting to look. I don't expect it will be a rush though, I think they need to drill about 3 times the numbers of wells as they have drilled in the last 10 years in the Bakken as infil drilling, and prospecting done will be done by companies wanting to get in on the ground floor. All the terms I have heard of lately seem long or to at least allow the company to option the acres far into the future such as 4 +4 or 5 + 3 or even 3 +3 +3 with the options being at the same low rate as the yearly rate of the initial lease. If I were interested in accepting one of those low offers that amount to $10 - $25 per acre per year or less and options to 8 or 9 years, I would want them to get off their hip pocket and sign a lease for the whole period with cash up front and not option me to death. I don't have a huge amount of acres in any one spot, 10 acres here and 10 acres there. I would just as soon let them keep their $250 a year and see what happens. I do understand that some people have alot more acreage and it could be in their best interest to keep the leases rolling over. Keep a close ear to the ground as to what others are getting in your area and if you can't convince yourself it's enough or you wouldn't want your minerals produced at the royalty they offer, consider not leasing, I've heard of offers as low as 1/8 [12.5%] which will be much reduced by taxes. If I were inclined to accept such an offer, a no deducts for absolutely anything but taxes would be in any lease I agreed to because below 8% to 9% net I would not want my minerals produced and tax can get you pretty close to that, you don't need to be paying for gathering and marketing. Best I have with it all being generalities because I have no idea where your acres are.
Well any commercially viable Bakken/Threeforks production isn't going to happen in slope. It is not mature in Slope. The Red River, duperow and Interlake/Silurian would be the only hope for a bonus worth depositing a check on (horizontal) and even then, 25 an acre is a stretch because its not even remotely proven that a successful completion design could be brought forward for those formations. There is really only conventional wildcats, 25 an acre with a decent royalty is a grand slam for mro's.
r w kennedy said:
Joshua, there is no going rate for the county of slope. In the northeast corner, the Bakken production is good to better and will command higher prices if it's not already HBP. Other parts of the county may be productive in the tyler or red river, nobody has made a really concerted effort yet with such a huge amount of nearly can't miss Bakken in nearby counties, but they are starting to look. I don't expect it will be a rush though, I think they need to drill about 3 times the numbers of wells as they have drilled in the last 10 years in the Bakken as infil drilling, and prospecting done will be done by companies wanting to get in on the ground floor. All the terms I have heard of lately seem long or to at least allow the company to option the acres far into the future such as 4 +4 or 5 + 3 or even 3 +3 +3 with the options being at the same low rate as the yearly rate of the initial lease. If I were interested in accepting one of those low offers that amount to $10 - $25 per acre per year or less and options to 8 or 9 years, I would want them to get off their hip pocket and sign a lease for the whole period with cash up front and not option me to death. I don't have a huge amount of acres in any one spot, 10 acres here and 10 acres there. I would just as soon let them keep their $250 a year and see what happens. I do understand that some people have alot more acreage and it could be in their best interest to keep the leases rolling over. Keep a close ear to the ground as to what others are getting in your area and if you can't convince yourself it's enough or you wouldn't want your minerals produced at the royalty they offer, consider not leasing, I've heard of offers as low as 1/8 [12.5%] which will be much reduced by taxes. If I were inclined to accept such an offer, a no deducts for absolutely anything but taxes would be in any lease I agreed to because below 8% to 9% net I would not want my minerals produced and tax can get you pretty close to that, you don't need to be paying for gathering and marketing. Best I have with it all being generalities because I have no idea where your acres are.