I own mineral rights on approximately 158 acres in Williams County, ND. Township 154 North, Range 100 West, 5th P.M. (not sure what the 5th P.M. means), lots 1,2,3,4, of section 6. I am trying to find out if there are any active wells nearby or if they are already drilling. The land has been leased for five years and is up at the end of 2013. We haven't received any payments and have not been notified that there are any wells on our mineral righted land. When I look at the GIS map, I'm not sure what I am seeing. I think I see some abandoned wells, several active wells and a confidential well in the section, but am not sure. Any help would be apprieciated. The lease is with Doyle Land Services, Park Energy, LLC. Thanks!
Karla, I answered this question in another thread. The lots do not show up on the GIS MAP. The lots are part of section 6. If you input those coordinates on the map, section 6 will be in the center of the map and shaded a different shade of green. I already looked and there are no wells new or otherwise in T 154 R 100 section 6.
Check the terms of your lease and make certain you are correct about when it expires. If you were unleased you would be sitting on $2,000ba (minimum) 20% royalty.....without negotiating anything.
DATE: APRIL 24, 2013 DAILY REPORT: 16332
PERMIT LIST
#25458 - TRIANGLE USA PETROLEUM CORPORATION, LITTLE MUDDY 11H, NESE 6-154N-100W,
WILLIAMS CO., 1480' FSL and 720' FEL, DEVELOPMENT, WILLISTON, 20185', 9-5/8 inch ,
1888' Ground, API #33-105-03049
#25459 - TRIANGLE USA PETROLEUM CORPORATION, LITTLE MUDDY 13H, NESE 6-154N-100W,
WILLIAMS CO., 1480' FSL and 620' FEL, DEVELOPMENT, WILLISTON, 20344', 9-5/8 inch ,
1891' Ground, API #33-105-03050
By the way......r w didn't miss anything if you noticed he posted on the 18th and the permit came out on the 24th.
Hi Andrew,
I checked the lease and it was issued December 21, 2008 and is a five year primary lease so expires December 21, 2013. I really know nothing about this so, can you explain what those permits mean? Someone else is drilling or is the company who holds our lease drilling on the land? If we are not "unleased" yet, what does that mean for us. Also, Parke Energy paid us 31,600 bonus for 158.14 acres at $200 per acre 1/6th royalties. We were trying to figure out if that is the "net acreage" owned (158.14) but $200 an acre seems awfully low compared with what RW says we should negotiate for when the lease expires which is around 5,500. Do you know if five years ago $200 an acre was a going price?
Andrew Babcock said:
Check the terms of your lease and make certain you are correct about when it expires. If you were unleased you would be sitting on $2,000ba (minimum) 20% royalty.....without negotiating anything.
DATE: APRIL 24, 2013 DAILY REPORT: 16332
PERMIT LIST
#25458 - TRIANGLE USA PETROLEUM CORPORATION, LITTLE MUDDY 11H, NESE 6-154N-100W,
WILLIAMS CO., 1480' FSL and 720' FEL, DEVELOPMENT, WILLISTON, 20185', 9-5/8 inch ,
1888' Ground, API #33-105-03049
#25459 - TRIANGLE USA PETROLEUM CORPORATION, LITTLE MUDDY 13H, NESE 6-154N-100W,
WILLIAMS CO., 1480' FSL and 620' FEL, DEVELOPMENT, WILLISTON, 20344', 9-5/8 inch ,
1891' Ground, API #33-105-03050
r w kennedy said:
Karla, I answered this question in another thread. The lots do not show up on the GIS MAP. The lots are part of section 6. If you input those coordinates on the map, section 6 will be in the center of the map and shaded a different shade of green. I already looked and there are no wells new or otherwise in T 154 R 100 section 6.
Hi Mr. Kennedy,
In an earlier post you had said I should find out if the 158.14 acres is the net acre amount. I have the Oil and Gas Lease that and Parke Energy paid us 31,600 bonus and a note to us breaks it down as $200 per acre/158 acres and 1/6th royalty. It looks to me like it is indeed 158 net acres that we own. $200 seems awfully low but that was five years ago too. Now you are saying we should ask for 5,500 per acre. You also said that if it truly is 158 net acres that we should consider contacting someone to help us manage such a large amount. Can I assume that based on the bonus paid and the acres listed on the lease as 158.14 that is indeed our "net acres"?
If so, do you still recommend finding a lawyer to help us manage this? Also, according to Andrew Babcock, there are now three permits on our section so I don't know how that affects things or really what that even means.
Karla Morrison
Karla, 5 years ago the prices were all over, the Bakken was still experimental. The very best core areas could draw $2,000 per acre or more but many people were still signing the first lease they saw with offers of $75 to $250.
Karla, your spacing is a 2560 and there is a rig symbol in section 6 right now two wells have commenced drilling. The wells presently being drilled are going to hold your acres / lease by production, and probably several other people leases. It looks like the operator is doing the classic drill the lease when it gets close to expiration, they would have drilled it sooner but they didn't have to and they had other leases nearing expiration, now it's your turn. It's not all bad, your area is good and you can hope/ expect good wells, just don't count the chickens before they hatch.
It would have been nice to get another lease with modern bonus amounts and a higher royalty of 20%, it would also be nice if you were not in a 2560 spacing that is going to dilute your royalty. Some people explain it as a small piece of a bigger pie. It looks like the southern two full sections of your spacing (no permits) are going to be untouched and it could be a decade before they are drilled and there is not a thing you can do about it. I call it the smaller piece of a nonexistent pie. The operator will divert royalty that should have been yours to hold untapped acres probably for many years. I have six spacings in McKenzie county that have not seen an infil well in the more than 5 years since they were first drilled. Even if these wells decline greatly before you get more wells, I would not sell outside of a case of life or death because eventually there will be more wells, the director of the NDIC O&G Division says so, anywhere from 48 to 96 wells in your overlarge spacing, so what you are going to receive for many years is 2% to 4% of what your acres and spacing, fully developed, would pay. I hope your luck is better than mine when it comes to more development.