Dunn County, ND - Oil & Gas Discussion

Comment

Comment by Jeffery T Turnbow on April 30, 2012 at 11:38pm

Mr Kennedy, thanks again for your information. I saw a confidential well about 5 miles west of our section so it peaked my interest. Our area again is 145, 91. 

Comment by r w kennedy on April 29, 2012 at 9:32am

I received a division order yesterday for my minerals in T148  R 93 section 2. The interesting thing is that to the best of my knowledge, the two wells in that spacing have not been fracked yet. In the past I have received division orders only a month or two before the checks start arriving. Also strange is that the wells were never on the confidential list. A month or two should tell the tale.

Comment by r w kennedy on April 29, 2012 at 7:20am

Mr.Turnbow, the Allan 17-1H in the next spacing over is inactive, the state has already sent letters that it should be put into service, put on temp abandoned status, or plugged and abandoned. The Allen started out as a well by Traker but was later sold to Hess. I think Hess must have seen some potential or they wouldn't have acquired the well. The Allan did show some oil in the three forks and also in the Madison formation. I wish I could say that I thought you would get lease offers in the next few years, but I wouldn't lie to you. I do think that your area has future potential with the rise of oil prices and or technology in extracting oil, it just isn't right now

Comment by Jeffery T Turnbow on April 29, 2012 at 12:16am

HI Everyone. I think I asked this question before.  I talked to a landsman breifly who told me to be sure to get a pugh clause in the next lease we sign.  I think the state of North Dakota set a good bar on price per net acre in leasing of at least 1000 dollars an acre.  Also does anyone know if 1/5th is possible to get? Is anyone getting that high of a royalty? Also is it better to do a shorter lease? We signed a 5 year lease and it runs out in one year.  I also hear oil companies are at least 500 wells behind in fracking.  The wells are getting drilled but there is not enough fracking units available, which could delay a producing well be a lot of time.  Does anyone have any information on the lack of fracking getting done on these wells that have been drilled? Our current lease as I discussed earlier is 3/16th and we were paid $250 per net acre.  At the time it was considered good money. 

Comment by r w kennedy on April 28, 2012 at 11:17am

Doing a bit of research on what Marathon did in Tx, they obviously think they bought the cream of the crop including some already drilled and producing acres. I still wonder about all the barrels of oil per day "equivalent" that I saw in the numbers as gas has fallen substantially in the time since the purchase was announced. One difference I can see between my acres and those in Tx is that mine have produced little gas, what little gas they did produce was very rich with a btu rating of 1.4. I think the greatest difference is between markets. 10 years ago you could lease about as much as you wanted in ND for $50 an acre or less and much of it at 1/8 royalty, in Tx they would run you off if you made such an offer 10 years ago. I've heard it said that owners with minerals in ND are mostly unsophisticated, sounds better than ignorant, but I think that's what they mean. Ignorant isn't a bad word, it just means you don't know, or are unaware. We are learning. Too bad probably 2/3 of the really prime producing acreage is already HBP. The word is out, even the state of ND has raised the royalty it demands on leases. I hope everyone gets to make the most of the advances that have been made in bonus and royalty [ better well tech also ] and gets a good well, or 6.

Comment by r w kennedy on April 28, 2012 at 9:46am

Mr. Dolan, you might check the date on that $25,000 per acre, it may not apply now that gas is $2 per mcf.

Comment by Donald Dolan on April 28, 2012 at 8:32am

Kc ,Why not ask Marathon, What's the difference between a Texas Acre and a North Dakota acre?

Their paying $25,000 a acre in Texas  ( Google it )

Comment by KC on April 26, 2012 at 9:51am

Eastern MT - Thank you for the information. 

Comment by Eastern MT on April 25, 2012 at 1:44pm

KC, 143 - 93 is just off the eastern edge of current activity. So it is positive MRO wants to lease you, especially on a three year basis. Regarding the bonus offer, if possible check with others in that immediate area for a comparison. Though off hand I'd say you have a reasonable offer. However, I'd push them for a 1/5th royalty (20%) instead of the 3/16th (18.75%) offered. My guess is that they will agree to it. 20% has become common in the area. Good Luck. 

Comment by KC on April 25, 2012 at 12:59pm

We have been approached to a sign a lease with Marathon for our mineral interest in Sec 4, T143N, R93W.  Offer is approx $1050 per net acre, 3/16th RI, 3 year lease.  And, would like to know if this is a good offer or could we get better terms.  Any current information would be appreciated!

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