Use this post to share and discuss your lease offers in Burke County, ND. The more we know about what is being offered the better decisions we'll all make. Share your bonus, royalty rate, and any other provisions you were able to negotiate.
Regan,
I agree with you but can't seem to find anyone willing to share what offers are being made. Eight family members, including myself, have minerals in Burke County T159 R92W. None of us still live in ND and our 5 year lease will expire shortly. It would be nice to know what terms and bonus offers are currently in the event the lease expires.
Anybody have any information on current lease offers (bonus/royalty) in or around T161, R94W?
Just got a phone call from Diamond Resources on behalf of Continental Resources, looking to lease in Northern Burke County. I was driving so couldn't take down which parcels but will let you all know when I get more info. He said bonus money wasn't as high up there as further South and they were paying 3/16 vs 1/5 which we got from Continental in 160N-94W, because there had not been any drilling done in the area yet.
Charles- According to Eser, Continental has a well (Ronholdt) in 11-161N-94W. It's fairly new but I don't know what they paid for leases.
John Anderson "Andy" Davis said:
Just got a phone call from Diamond Resources on behalf of Continental Resources, looking to lease in Northern Burke County. I was driving so couldn't take down which parcels but will let you all know when I get more info. He said bonus money wasn't as high up there as further South and they were paying 3/16 vs 1/5 which we got from Continental in 160N-94W, because there had not been any drilling done in the area yet.
Charles- According to Eser, Continental has a well (Ronholdt) in 11-161N-94W. It's fairly new but I don't know what they paid for leases.
My sister and me have an interest in 11-161N-94W. We just got a call from Diamond/Continental offering $1000 bonus and 20% royalty. Anybody else have any additional info?
I do not live there, so i really don't mind sharing my rates. The lease's i have were not signed by me, but have been transferred to me recently. I can't tell you in 19-160N-93W we have a 3/16th lease and a little further west we are on an older lease that should NOT have been signed at 12%. This lease was agreed to at 8 years, which is way to long and the percent is way low. From my findings Leasing in Burke varies from $500 per ac to $1000 per ac. Much of it depending on the length of lease and percentage agreed upon. If you could get $550 per acre with 20% share on a 3 year. That may be better that agreeing to $1000 per acre on a 3/16th with 5 - 8 year lease. In the long that is. The short term may pay if you hold enough acreage.
AD said:
I do not live there, so i really don't mind sharing my rates. The lease's i have were not signed by me, but have been transferred to me recently. I can't tell you in 19-160N-93W we have a 3/16th lease and a little further west we are on an older lease that should NOT have been signed at 12%. This lease was agreed to at 8 years, which is way to long and the percent is way low. From my findings Leasing in Burke varies from $500 per ac to $1000 per ac. Much of it depending on the length of lease and percentage agreed upon. If you could get $550 per acre with 20% share on a 3 year. That may be better that agreeing to $1000 per acre on a 3/16th with 5 - 8 year lease. In the long that is. The short term may pay if you hold enough acreage.
Haven't seen the paperwork and the lease term yet, but wouldn't agree to more than 3 years as we have done with other leases with Continental. Just wondering if the bonus sounded ok.
Bonus sound right in line. Even better that you are being offered 1k per acre and the 20%. I would shy away from taking that. Especially if you can get a short lease. Continental has been active in the area. We have two active wells with them now. They are good with payments and also are evolving the pad drilling techniques that could equal multiple wells on your site. 2, 4, 6, 8 wells is not out of question with Continental. I also appreciate that they have a royalty owner portion to their website that allows you to see your monthly payments before they get to your account or doorstep.
Charles,
In 161-94 there are wells in sections 4, 6, 15, 16, 18, 20, 23, 31 and a well currently drilling in section 3, five of the producing wells are XXL long lateral. According to the NDIC. Looks like a fairly active area. Just the other side in Range 95 there are multi well units. Sorry I can't tell you current bonus rates. If you can I would hold out for more royalty because the bonus is today but the royalty is for decades. Good luck.
An extra $10 per month times 300 months = $3,000.
Thanks for the info and the advice on the royalty. We also have interests in Section 2, and were informed that drilling may occur there in the future.
r w kennedy said:
Charles,
In 161-94 there are wells in sections 4, 6, 15, 16, 18, 20, 23, 31 and a well currently drilling in section 3 five of the producing wells are XXL long lateral. According to the NDIC. Looks like a fairly active area. Just the other side in Range 95 there are multi well units. Sorry I can't tell you current bonus rates. If you can I would hold out for more royalty because the bonus is today but the royalty is for decades. Good luck.
Did you mean to say you would shy away from the offer, or not shy away? We have a couple of leases with Continental in Divide County (161/97), and have had no issues with them. One of them is a multiple well pad, and the other one is still in confidential status for which we were paid $450 bonus, 3/16th royalty, and 3 yr term.
AD said:
Bonus sound right in line. Even better that you are being offered 1k per acre and the 20%. I would shy away from taking that. Especially if you can get a short lease. Continental has been active in the area. We have two active wells with them now. They are good with payments and also are evolving the pad drilling techniques that could equal multiple wells on your site. 2, 4, 6, 8 wells is not out of question with Continental. I also appreciate that they have a royalty owner portion to their website that allows you to see your monthly payments before they get to your account or doorstep.
I can only speak from my experience which is quite new. Only been handling this for about 2 years and the offers that were received last year were less than that. However, RW Kennedy has given me a lot of great advice on being cautious running into lease's without doing your do diligence. So in my eyes the deal looks good and the company from my experience has handled my affairs well to date. I am sure you can always find conflicting opinions as there are numerous variables to account for. i.e oil companies, land locations, lease times, pipeline availability , etc.
Regardless, the deal in my eyes looks similar to offers we have had if not better.
Thanks. Also new to this, but learning. When we see the written offer, I might run it by our ND attorney to see if there might be something else to consider.
AD said:
I can only speak from my experience which is quite new. Only been handling this for about 2 years and the offers that were received last year were less than that. However, RW Kennedy has given me a lot of great advice on being cautious running into lease's without doing your do diligence. So in my eyes the deal looks good and the company from my experience has handled my affairs well to date. I am sure you can always find conflicting opinions as there are numerous variables to account for. i.e oil companies, land locations, lease times, pipeline availability , etc.
Regardless, the deal in my eyes looks similar to offers we have had if not better.
PS to earlier post. The lease they are currently proposing apparently covers the well (25798) in Section 23, which is part of the spacing unit that also includes Sections 14 &1.
r w kennedy said:
Charles,
In 161-94 there are wells in sections 4, 6, 15, 16, 18, 20, 23, 31 and a well currently drilling in section 3, five of the producing wells are XXL long lateral. According to the NDIC. Looks like a fairly active area. Just the other side in Range 95 there are multi well units. Sorry I can't tell you current bonus rates. If you can I would hold out for more royalty because the bonus is today but the royalty is for decades. Good luck.
An extra $10 per month times 300 months = $3,000.
Oops...just reviewed some lease docs over the weekend. We did sign a 18.75% with Bonus of $1000/acre. FYI
Just signed leases with Continental Resources a little North of the above discussion. Both are for small net acreage.
One was in Sec 4-162N-94W for 3yrs at 20% with $800/acre bonus.
The second was for interests in Sec. 14,23 & 31-163N-94W at 18.75% with $600/acre bonus.
According to the Diamond Resources landman, the differences relate to the unproven nature of the more Northerly area. I got the impression that Continental may start a well soon in/near the 4-162N-94W parcel, but that they probably wouldn't be touching the 163N areas for about a year. He indicated that Hess was pulling out of the area and Continental was planning to fill the void.
I just got a lease in the mail from Diamond and was just wondering what others thought, any input is appreciated. We have min rights in 162/91 sec 19 and they are offering $75/acre with 16% for 5 years, not sure if that is a good deal or not, I was told by a family member that it is not a bad deal...
Sounds low to me. I wouldn’t rush to sign anything without extensive research. I also would not sign a five year commitment, just in case your signing a low offer. Atleast with a short lease your are not burden by a mistake for long.
That’s what I was thinking as well but wasn’t sure what the price per acre should be, we haven’t signed the lease yet, I’ve been doing a lot of research but not really finding anything on PPA, especially in our area where I didn’t see too much activity going on. Can I propose a counter to the landman or is it a lost cause trying to negotiate with them?
By all means counter to the landman. I was told that they couldn't give me $800/acre in 163-94 because "it wasn't a proven area yet", but I still managed to get $600. And don't forget to ask for a Pugh clause and a vertical severance clause. If you don't ask, they certainly aren't going to bring it up.