We got a call 2 weeks ago from a company out Texas that is leasing in that area. My husband’s cousin has got the same call to lease. The offer was better than Empire by far but I guess how many acres your family has helps as well. Our mineral are close to 141-104.
No, but there is an issue with actually FINDING the appropriate person that owns the mineral rights (my wife). I am trying to remedy that now. Noone has EVER contacted us about the property and the rights.
I can get it, my husband has it at his office. Were are your minerals
located, have you had any good offers? My sister in law got a call from Empire to top lease, but her lease is not up until November. Why would they want to top lease if they are getting to drill?
In the past Empire out of Williston has leased in the area alot.
Hi, do you have the contact info for the company leasing? thx
Get a lawyer !
Section 7 in Township 140 North, Range 105 West
I think you are north of us. Have you had any offers?
Thanks for the word Andy. I’ve some nearby which is coming open this summer.
In ND what is the current or method used to calculate what the mineral right owner gets per barrel.
thanks,
Allan
Allen, it depends on your lease, whether post production costs are taken out of your gross. The price per barrel that the operator sells the oil for varies as does the quality of the oil. My oil sold for $90.15 in may, gas for $5.50 to $6.40 per mcf. The price of my oil gets a little higher price because of it’s quality but then that is eaten up by the fact that it is discounted because it is sold in ND and the buyer deducts the transportation costs from the price they will pay. I hope this helps some as there is no one size fits all royalty calculation. It all depends on your lease.
Can anyone recommend a landman in Golden Valley ND.
Need to find details about mineral rights owned by deceased grandfather.
Gary, landmen are expensive these days in ND. if you have old probates, have a lease offer for all of the mineral rights you think you own, have recorded your statement of claim to all that you think you own, I think you are in a stable position. I can’t recommend any landmen in ND right now but a good one could cost you $600 a day, for day rate and expenses. If you think you may own a lot more than you could prove, it might be worth hiring a landman but I would want to see a good solid reason to do so before I did.
Hi MaryAnne,
The property is at 140N x 105W
I am trying to figure out a fair per acre bonus and royalty.
Thanks for any help!!
brian
So to add to this thread, My family currently have a lease set to expire at the end of July. T141 R105 Sec10 E 1/2 (25 net acres)
This lease was originally set up via Petro-Hunt for Whiting in 2008. The original lease was for $10 per acre,per year for 5 years with a 15% royaly. So today we get a call from Petro offering a renewal for the same terms. Of corse we said NO because of all the drilling in the area , including the horizontal from sec 15 to the south (Schaal 22-15h) that is going right into our east sec. After telling him this he said “realistically you can probably negotiate 4-5 time more than that but don’t count on 10 times more”.
So, what are my options as far as lease terms in this area? What is the going rate around me? Living in AZ I’m a bit out of the loop here. I’ve looked at the numbers on this thread but haven’t come to a real conclusion. Thoughts, suggestions, attorney?
Thank you for the comment. Much appreciated.
Brian, If you know the township,range and section you can get on the North Dakota Recorder Information website and go to Golden Valley County. They have all the recorder information online for $25.00 per month. You may find them yourself with little cost. I think they go back to the early 1980’s.
It will have all the deeds, mineral rights, last will and heirs for every county in the state. Also the North Dakota Oil and Gas website has the activity in that area which has very busy in the last year. We have friends that have recently (last week) been offered $1100 per acre at 21.5% for a three year lease. They have been putting a new well in every 20 days just north of Beach and the H- 94. It’s becoming a new hot spot.
Where are your mineral located in GV?
Your area has had alot of recent activity so never sell your rights just lease them. Go to the North Dakota oil and gas website at https://www.dmr.nd.gov/oilgas/ - you can to their map and find all the activity in your area. I can tell you that last fall my brother in law lease in GV for $750 per acres at 18.5% for 3 years. But the rates have gone up due to all the new activity. Do not lease for any under or for five years.
My understanding the market in that area is at $1000.00 plus and about 19-20.8 % A fews well that have recently gone in and are doing great are Mauss, Katherine, Bleis, Riechoff, Witzerfeld. Their are even more just North of Beach ND . Search around and get familiar with the ND oil and gas site it is full of information. The ND recorder will show leases in your area recent and past they will not show bonus amounts but their do show royalty and that is where your real money is.The higher the royalty the more money you will get each month. Demand at least 20%-22.5% .
Brian, first off anything a landman who is trying to lease you says must be taken with a 25# block of salt. Your area is largely unexplored so who is to say whether it is good or bad? What you do know is that it is speculative in nature and that would bring the price down some.
The landman telling you that they are concentrating on infield drilling is sort of misleading. Infield drilling by nature is drilling land already held by production and does not take priority over getting new leases held by production, the last 7 years in ND have been an example.
There is one producing well and 5 dry holes in your township and range and not a single SWD well. From the extremely low file numbers of the dry holes, they were probably drilled before I was born and I am 47, advances have been made since then.
The producing vertical well drilled in section 31completed in the Silurian formation had an IP of 319, and a first months production of 6,613 first month in jan 1998. Not bad for a vertical well. They first tried to complete in the Red River but they called it dry, but the Bakken was also called dry many times with vertical wells because it was not profitable to produce.
My point would be that I have more dry holes in one of my sections than you have in an entire township. The oldest well from 1953 found signs of oil, we might be able to do a little better 60 years later.
You don’t say how much they want to pay, probably a pittance, you don’t say that they want a lease with 5 years + 3-5 years option to extend for probably the same money but I think this is the most likely reason they want to lease you now, to lock in the lowest price and royalty possible.
They may be totally speculating, that they could lease you and in 5 years they could sell your lease to someone else for 5 times what they paid for it or more. The thing is, you could decide not to lease and speculate with it yourself. It’s an investment you already own and if they are offering $5-$10 per acre per year, that’s a pretty small investment for them.
Unless the money is truly significant to you, I would not lease. If you were not happy with the bonus offered but you still felt you needed to lease, I would still want a royalty I would be satisfied with, because if they do drill a well you are going to be stuck with that same royalty for a long time. Good luck.
Brian, the 3/16 royalty was better than I expected them to offer but less than I would expect for a lease of my acres, after all, if they don’t find oil it costs them nothing. The Red River may not be profitable in your area, anything is possible but it is a formation that covers a huge amount of territory and they have found it profitable in many places in ND and Montana. I think they could do better with todays horizontal technology. I would also like to point out that $50 per acre 5 year offers aren’t likely to go away.