Relative has an interest in Richland County. Just got a lease offer, 5yr 17% $200/NMA. Anyone know if that’s average, low or high? I’m used to 3yr 25% w/ higher bonus in TX, but I don’t know MT at all.
I checked and there are wells in the area, almost all plugged. A few legacy wells nearby. Don’t see any permits or new development in the area
Hey David…what’s your minerals location in Richland CO ?
From what I can tell, about 2.5 miles northeast of Sidney.
Giving a section, township and range is more helpful in getting an answer. The County is large and offers will vary due to geology. Personally, I never go for more than three years. The five year and relatively low price is a hint that nothing is happening at the moment. Best to get an attorney to look at any draft lease as most are not in the mineral owner’s favor and need significant edits.
David, I have some NPR interests in the area. I am curious where you are specifically located and who has approached you with an offer. White Rock Oil and Gas has acquired properties from XTO in this area. The initial horizontals drilled in this area have not been that impressive; however, newer technology and techniques may improve results for newer wells. You want to be cautious on responding to offers since MT has some curious applications of their forced pooling statute.
Thanks to everyone who has responded.
I’m looking at Sections 21 and 22 in T23N R59E. Supposedly my relative has a 25% MI in both sections (or at least in portions of both sections). They were approached by Chase Morehouse of Kraken Oil & Gas.
I found a lawyer in MT who is willing to assist (pending clearing conflicts) but I don’t know if he is familiar with this particular area, hence the desire to crowdsource info on what is a market offer for leasing in this general or specific area of the state.
I just received an offer today T25N R56E sections 14 and 11 5 yr lease 19% $700 per acre bonus. Anyone have any info? Thanks guys
And as far as terms, I don’t have current 2024 data but when activity was increasing at the end of 2023 the bonus per NMA had a very wide range. As @M_Barnes said, it varies greatly depending on numerous factors. $200/NMA isn’t terrible but it’s not the highest I’ve seen. It will be tough to get over 18.75% royalty, but I’ve gotten 20% in Richland a few years ago. Never grant more than a 3 year primary term and always strike the option to extend. It’s wise to include a drilling commitment and continuous development language to ensure your tracts get developed. If you actually own 25% of the minerals in two sections then you have substantial leverage to work with; use it to your advantage.
David:
The permitting activity has cooled somewhat in your area over the last 60 days but the leasing activity is still red hot. Kraken has 2 rigs on the ground, one of which is just North of you in T24N. As stated earlier in the thread, White Rock is out there as well and has a unit adjacent to your sections (highlighted in green) so use that to your advantage in negotiating terms. I’d reach out to both and get offers to compare.
I’m curious to know if this was a Kraken offer you received?
Does anyone have a contact for White Rock O & G or Chase Morehouse of Kraken Oil & Gas for discussing a lease. I am in Richland County, MN Section 20, T26N, R51E. (160/320 .5MI)
