Oil and Gas Lease Offer

North Dakota Mineral Rights Stark County, ND
1

I have received an offer to lease Section 9-139N-98W in Stark County ND. The leasing company is Murfin Drilling, Inc. Need advise on 2 things.

  1. Is anyone familiar with Murfin?
  2. They have given 2 options for lease. 1) $200/mineral acre bnus with a 1/8th royalty provisions. 2) $100/mineral acre bonus with a 1/6th royalty royaltly provision.

I have 3 other sections and section 2 is currently leased by Morningstar and have had activity there since 2010.

Im trying to get advise on the market value and if this is a fair lease. I feel like it is low but not sure what is happening in that area. Thank you in advance for your assistance

2

You may want to reach our to @M_Barnes since ND may have some notice issues relating to OGL offers. Murfin has been around for quite some time.

3

Most savvy mineral owners would want the second option at 1/6th, but ask for 3/16ths and see what they say.

4

Do you think the $100/mineral acre is a good value? And Thank You

5

Thank you James. Appreciate your input

6

They are also requesting a 5 year lease. I’ve read that its best to only do 3. Do you have any input?

7

Personally, I always ask for more money and a shorter time frame. So $150 at 1/6th or $100 at 3/16ths and three years. They may not agree, but you don’t know until you ask.