Oil & gas discussion group for those interested in Golden Valley County, ND. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Just got the opening offer from Empire for leasing our interests in T141 - R103 & 104 (not sure exactly which yet). $350/acre with 3/16 royalty for 3 years. Sound reasonable??
Mr. Davis, I’ve not been actively soliciting or receiving offers in that area of Golden Valley County lately. As a result my info may be rather “dated”. Yet both that bonus amount and royalty rate are the highest I’ve heard for that area. So I’d say yes you have a “reasonable” offer. If I hear otherwise I’ll post it here. Good Luck and please advise how it turns out.
Mr.Davis
Just remember the first offer is usually the lowest offer, it’s not bad but you can do better. Golden Valley has seen some recent activity which has increased the bonus and royalty market for that area. The new standard royalty is 20% and bonus depends on section and amount of mineral acres but at least get WELL above $400.00 per acre for your range. The closer you are to Maus 22 - 23 the better. Whiting has high hopes for that area. Do some research on Whiting Oil website and ND oil and gas site and get ND oil and gas attorney to help .
Mr. Davis:
Your offer from Empire is reasonable compared to my lease to them nine months ago in 104-104. Your bonus amount is just slightly higher than what I signed for. Same royalites, only mine is a five year lease. Couldn’t get them to budge on the lease term so I accepted.
They was a Allen called Susie that was alway in Web’s shadow. She must be an Aunt or cousin ?
It depends on your location. Google earth or Flash Earth and you can see exactly where the ground is being moved to put in new wells.
Whiting is just picking up certain small areas. The real money is in the royalities not bonus
Gerald,
What did you sign for in per acre bonus and royality plus year?
Our attorney said not to sign anything more than a three year lease but try for a two year first. He feels that next spring GV is going to be a busy place and the bonus will increase greatly. The area around Maus is the next hot spot it will make or break if and or when more wells are coming in GV.
Bakken Shale forum ?
I do remember a old boy on the farm doing summer fowling for Web. Was that you ? He was friends with the other Allen boy … Albert and the Tescher boys. Susie looks the same… she reminds us of Hazel ! Same personality just smart as a whip. I dont know of a map but your sister knew this project was in the works before they moved equipment on the site. She may have alot of more information. I know she is going back again in the spring.
We heard that a new well is going just due north of Sentinel Butte ND on the edge of town. Does any one know what that well is named ?
It depends on your location. Google earth or Flash Earth and you can see exactly where the ground is being moved to put in new wells.
Whiting is just picking up certain small areas.
Yes, sadly most times google earth will not have recently updated imagery and your better chance might be found in the library of the EROS DATA CENTER which is under contract with the department of the interior. Images are generated for oil industry study and as a result may also be available to the public. One of the things to remember is that most often than not the oil companies will make settlement with surface owners regarding locations and details of the drilling pads. The fact that this negotiation has taken place is a solid indicator of the next move planned by the producer. On the ground confirmation and observations remain the best source of information. At the Nistler site, four tanks, two for water and two for oil have been placed and bermed and it is becoming obvious that Whiting is preparing for the IP test on the well. Permit for another H well have been issued to the north of the Nistler and preparations for the pad are assumed to begin soon.
Field development will take place, but it will take place at a speed dictated by market conditions, infrastructure and development budgets of the developers who have behind them world class investors. I say this because it may in some way be foolish to turn down a lease for the matter of lease term of 2 to 5 years. Whiting typically does not sign less than a five year lease unless it is expedient for them to do so. Their first concern may not be putting a vertical well on your acres within a two or three year period and may likely more lay in developing market share in the field by concentrating on H wells first to take advantage of the “land grab” that the discovery leaseholds H wells provide.
With the development plans that are proposed by the various producers, in time, there would be a well on every section. My prediction is that you will not speed up or slow down the development machines now on the ground by dictating a shorter term for your lease. Andy is adjacent to the maus development and as such has received a great offer in my own opinion.
Another aside is that whether the Nistler comes off as a producer or not it will have no great effect on the going lease rates as Whiting is going to continue development regardless and the state itself is seeking standard royalty rates of 3/16 ths to be a new standard for state held section 16 leases.
Joel,
Not sure if this is true or not, do you know?
On February 1, 2010, President Obama sent to Congress his 2011 budget proposal which continues to call for the repeal of the percentage depletion tax for oil and natural gas wells. The Office of Management and Budget estimates that the repeal of the percentage depletion tax will bring in to the federal budget $10 billion over 10 years. This $10 billion will come from YOU, as a royalty owner. This $10 billion is part of an estimated $36.5 billion of new taxes on oil and gas.
Zeb, I know they can drill an H well in a month. How many rigs are you thinking will be involved in the 4,000 ?
http://bismarcktribune.com/news/state-and-regional/north-dakota-pum…
at this rate how long will it take to do 4,000 wells in a field development plan? your better at numbers than I joel any kind of guess?
You will not see the figure of 4000 wells in the article, that information comes from the field development plans of Whiting, they are not alone and other producers report plans to develop similar numbers of wells. Add them together and it would be a well in every section. Of course, these kind of development plan statements from the producers are called forward looking and as such are speculative rather than factual. The reality of it all will bear out in time as the field is acutally developed.
Ooooh, I like that! Does oil flow South? ;o) Still waiting for more contact from Empire on our holding in SE quarter. Do you think I should contact Empire or Whiting again at this point or just keep waiting?
What is 2012 a market of bonus ? I have heard of $500.00 per acre + and 22% royality ? Any updates on rates in GV?
#20043 - WHITING OIL AND GAS CORPORATION, PEPLINSKI 34-9, SWSE 9-141N-105W, GOLDEN VALLEY CO., 200 bopd, 83 bwpd - RED RIVER