We have mineral interests for about 120 acres in Divide County as inheritance from our grandfather who grew up in Crosby. We were approached by Diamond Resources six months ago to sign a 3-yr lease at $600/ac bonus. We first had to straighten out ownership of mineral interests, which took the greater part of five months. Last week, Diamond told us they were canceling the lease offer due to passage of time and most likely low oil prices.
Do you know names of other leasing brokers in the area interested in offering us a 3-yr lease agreement, or are we out of luck until oil prices go back up to $55-60/bbl?
Hi Todd,
that is not surprising based on the current oil price. We too have lands up in Divide County that will be released the end of this month. There is very little leasing activity at this time, although we did receive a low offer from North Plains Energy via Titan Resources out of Williston. This will all change when the price of oil goes back up - the oil is in the ground, just have to be patient until recovery.
Regards,
Don
Hi Don,
Appreciate the feedback. I would tend to agree that as oil goes back up, we'll see more leasing activity. For those people who are fans of T. Boone Pickens, he forecasts oil will get to $70/bbl by year-end. We'll see.
Todd