Southern McLean County

Shales Bakken Shale
1

Does anyone know anything regarding leasing activity in South Eastern McLean County near Wilton or Washburn?

2

Dale:

I am not familiar with the current leasing status in McLean County, but an article was published in the Billings Gazette in November of 2011 stating that offers were being made for leasing in this area but they were low and speculative in nature. The article further stated that these offers were being made early for a possible resale at higher prices if the area is developed. After reading this article, if I had mineral interests in the area, I would take my time and study the offers in order not to be the victim of a lowball offer. By all means, I would not lease for longer than 3 years and would not agree to an extension as alot can happen during that time period.

3

Thanks for the info! I have also heard of seismographic activity in the area in the past couple of weeks and was curious about what may be happening. I also read an article (where unknown) that activity in the Bakken will move somewhere between 50-100 miles further east and 50-100 miles further north of current activity.

charles s mallory said:

Dale:

I am not familiar with the current leasing status in McLean County, but an article was published in the Billings Gazette in November of 2011 stating that offers were being made for leasing in this area but they were low and speculative in nature. The article further stated that these offers were being made early for a possible resale at higher prices if the area is developed. After reading this article, if I had mineral interests in the area, I would take my time and study the offers in order not to be the victim of a lowball offer. By all means, I would not lease for longer than 3 years and would not agree to an extension as alot can happen during that time period.

4

Dale:

Again, I would sit back and wait for several months and keep abreast of what is taking place in this area. At this stage, I believe that lease brokers will be offering low bonuses in order to flip the lease in the future for a good profit. This is often very common in new areas.

Dale Patrick said:

Thanks for the info! I have also heard of seismographic activity in the area in the past couple of weeks and was curious about what may be happening. I also read an article (where unknown) that activity in the Bakken will move somewhere between 50-100 miles further east and 50-100 miles further north of current activity.

charles s mallory said:

Dale:

I am not familiar with the current leasing status in McLean County, but an article was published in the Billings Gazette in November of 2011 stating that offers were being made for leasing in this area but they were low and speculative in nature. The article further stated that these offers were being made early for a possible resale at higher prices if the area is developed. After reading this article, if I had mineral interests in the area, I would take my time and study the offers in order not to be the victim of a lowball offer. By all means, I would not lease for longer than 3 years and would not agree to an extension as alot can happen during that time period.