I’m part owner of minerals on 158N,Range 99W, Sect 21 SE1/4 and have been getting some pretty good offers to release to Continental through Diamond. Looks like there’s some pretty good production in the area (Ellisville). We feel fairly comfortable going a 3 yr lease at 2k per acre and 20%. Open to any thoughts.
Jerry:
Again, I think the $2000 bonus sounds good. I actually put more empasis on the % royalty as this is what will be with you for the length of the lease.
Thank you for your response Charles. I’ve followed your responses on other issues that have come up on the forum and feel better educated for it.
Jerry:
Sounds like the terms of the lease is in line with the area. You might try and negotiate for a higher bonus but from what I have read, the $2000 is fair.
Saying it is “fair” is subjective, but it is in line with what people are being offered for minerals that probably are going to see a well prior to the end of the 3yr lease.
Robert, the wellbore is what matters with these extended long lateral 2 mile wellbores. If the wellbore is in your spacing with your minerals, you get paid. If just the wellhead is in your spacing and the wellbore is outside of it you do not collect royalty from that well. It’s too bad too, because I have some great wells that were drilled from my spacing with the wellbores in the spacing above mine.
The operator saves money by grouping the wellheads together with I slightly larger pad, 1 road, 1 landowner to deal with and in the future they may be able to comingle all the oil in the same tanks [ each well with it’s own meter ] and need fewer tanks, with one gathering line to carry product away also.
Robert, there are 4 new wells permitted but none of them have commenced drilling, 2 of the 4 new wells if they are drilled are supposed to be yours. I hope they drill them all.
robert:
If all of these wells are being drilled in your spacing unit, you will share in each of them. The Bakken drilling program is slowly shifting to multi- well spacing units. This will be the trend over the next several years.
Good morning and another question for you gentlemen.
I have noticed after looking at the GIS map this morning that Continental Resources are drilling two more wells on section 4 of 157N, 98W. duly named the Cass 2-4H and the Cass 3-4H respectively. This after having drilled the Cass 1-9H in 2012. These two new wells are in the same 1280 spacing that the Cass 1-9H is in.
I also notice that there are another 2 wells being drilled by Continental Resources called the Blaine 3-33H and the Blaine 2-33H, these two wells are also located on section 4 according to the GIS map I would assume that these later two wells based on their numbers will be drilling in section 33 of the adjoining property though?
My question is if these two other wells (Blaine 2-33H & Blaine 3-33H) are actually located on section 4 of 157N 98W if in fact they actually are? then do we also share in the royalties of these two wells?
Debbi, not all states require that property in their state be probated in their state, many states will accept the probate from another state, unfortunately ND is not one of those states.
Debbie…believe me I feel for you!!! I had something of the same problem only it goes even further back…there was some sort of problem with my GRANDFATHER’S probate or a mistake made on a deed from what I can understand. We hired a lawyer to clear it up but then my Mother passed while that was going on so it ended up taking eight months to straighten it out and we still have not seen anything but it looks like we will be getting a check at the first part of March. Very frustrating is right!!
Debbi - No, not all of the oil companies require probate. Depending on the total value of your holdings, some may accept and “Affidavit of Heirship”. Of 6 oil companies we deal with, only one required probate be completed. But there may be other title issues that also must be cleared up…we certainly had to do that. You need to talk to the Landman with the appropriate oil company to find out what they require in order to put you into pay status. But that said, an affidavit of heirship does not LEGALLY transfer ownership of the mineral rights. Transfer of title/ownership can only be done via probate in the state in which the property is located…North Dakota in this case. If the oil company will accept an Affidavit of Heirship, you may still want to consider probate to prevent future questions of title ownership. A pain, yes. We are just about 1 year into getting our probate completed.
Thank you ALL for your answers. I think North Dakota between their attorney’s, oil companies and the 20 year abandon act rake in the money. LOL It’s only money…right… Thank you again!
Are all of the oil companies requiring “probate”? It seems it is a constant struggle to get what should be rightfully mine. My parents were probated in another state leaving to me as sole heir. Very frustrating…
Hello, I was wondering if I could get an update on things for my delores sand and morgan,mustang,pinto,arabian wells, thanks very much.
Daniel, you have a well being drilled right now (MUSTANG) in 149-93-29, spud date April 19, 2013, it’s a Three Forks formation well. Your existing Bakken formation well (ARABIAN) had a fairly good first (short 23 days) month with a production of 17,441 bbl of oil.
Your DELORES SAND well in 151-94-29 is up to a cumulative oil production of 142,714 and in March produced 6,722 bbl oil. I hope this helps.
I have been made an offer to buy my mineral rights. Has anyone else had offers to buy up minerals? If so, what is the going rates these days?
Uta:
It is not uncommon to receive offers such as the one you received. Over the past ten years, I have had numerous offers in regards to selling my minerals, mainly from two specific companies.
158 -102 g3 only offered 600 and still say they are moving out of the area and might come back some time
Lease Bonus for around T158-R102W-S7. Have offer but would like to have what the going amount around this area is. Thanks!
Debra:
You have two active wells near your mineral area; Newfield Production Co (Larson 159-102-29-29-32-1H)…this is the nearest active well from your mineral area; G-3 Operating Co. (J Haugen 1-9-4H) is another nearby well. If someone who has the NDIC subscription could provide the production figures for these wells, this would be a start at determining a bonus rate for your area. Several years ago, the area around T157N;R103W was leasing from $1500 - 2000/acre with a 20% royalty. Of course I would limit your lease term to 3 years with no extension.