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Dunn County, ND - Oil & Gas Discussion

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Dunn County, ND - Oil & Gas Discussion

Oil & gas discussion group for those interested in Dunn County, ND. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.

Members: 76
Latest Activity: Mar 31

Discussion Forum

Dunn county 145n-93w-33nw

Started by William Hahn. Last reply by r w kennedy Mar 31. 1 Reply

My family inherited the mineral rights to 160 acres in Dunn county at 145n-93w-33nw and this acreage has been leased for the last 5 years to Marathon oil. They have recently decided to let the lease…Continue

Dunn County Mineral Rights

Started by Dennis Del Ponte. Last reply by r w kennedy Mar 11. 1 Reply

Several years ago I inherited mineral rights to 160 gross acres, 80 net mineral acres at35-141N-95W.  The asset has been under lease to Oxy USA with the present lease to expire in February 2015.  Oxy…Continue

Dunn Co T148n, R96 knowledge

Started by Lee Malmberg. Last reply by Robert shepherd Feb 25. 70 Replies

Comment by Lee Malmberg 34 minutes ago…Continue

Anybody Have Experience With Kodiak or XTO?

Started by Dogbert. Last reply by r w kennedy Feb 16. 4 Replies

I would be interested to hear from people who have Kodiak Oil & Gas or XTO as their well operator.Did they send a Division Order and if so how long after the well(s) began to produce?  Do they…Continue

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Comment by r w kennedy on March 25, 2014 at 7:24pm

Dennis, I don't have the current bonus rate but I do have some information. Oxy and Oasis both have wells near you. I would rather have Oxy drill my well because I think they would do a better job and get more oil out of the ground.

Comment by Dennis Del Ponte on March 25, 2014 at 5:57pm

Sorry about that:  35-141N-95W

Comment by Eastern MT on March 25, 2014 at 5:40pm

Dennis, As always it depends on your location. If you state your Township & Range you may get a useful answer from someone who has leased recently. Presumably if your minerals haven't been drilled yet you are somewhere along the edge of the play. Which direction would make a major difference in what you might expect. 

Comment by Dennis Del Ponte on March 25, 2014 at 2:28pm

Does anyone know what the current lease rate is for mineral rights in Dunn County?

Comment by r w kennedy on November 19, 2013 at 5:52pm

Lee, I forgot to mention in my reply to your thread that your lease will not expire, at least not concerning the mineral acres that you have the well on.

Comment by Lee Malmberg on November 19, 2013 at 10:16am

Hi, I am a 'newbie' to this form and to anything in the Gas/Oil business.  Two years ago I inherited about 2000 gross acres and .02198 net mineral acres in Dunn County Township 148N, R96.  I have a gas and oil lease with Bakken Oil that will expire in another year.  I received a DO from XTO Energy covering parts of Sec 25 and 36 T148NR96W stating that my interest is being suspended pending certain title issues.   I do not know if this area and the small net mineral rights are or will be of any value.  I am trying to gather info for my self and can pass on to my niece and nephew who have a smaller 'net mineral' rights in the same area.  Your thought and comments are appreciated.  

Comment by r w kennedy on August 14, 2013 at 4:18pm

Thank you KJ.

Comment by K J Ktytor on August 14, 2013 at 2:38pm

Congrats RW! From what I read on the Forum, you are deserving.

Comment by r w kennedy on August 14, 2013 at 2:29pm

I just received another AFE for a new well in 149-93-24 which is my larger spacing I am a carried interest in. It also included an offer to lease for $1,500 per acre and 20%. Best laugh I've had in awhile because in that same spacing I have a well that I was a carried interest in that is about paid off and I am going to become a working interest. What a lovely day!

Comment by r w kennedy on May 31, 2013 at 7:50pm

Theresa, the sale price is usually alot less that the long term value of the producing acres. The buyer usually assumes that the decline will be more than the usual to be on the safe side and also that the price of oil may fall as much as 30% or more. The buyer may expect more wells to be drilled but since he has no way of guranteeing that they will be drilled, it's a windfall if the are drilled but they are not directly involved in the buy offer on a dollar for dollar basis, probably just a small premium considering the wells already there.

I don't know if your wells have declined to their more stable flatter decline rate, if your wells are only a year old, the buyer probably wouldn't want to offer you 5 years royalty at the current rate because in 5 years your wells might not be producing even half as much oil with a price 30% less per barrel at which point the buyers tidy 5 year investment starts looking like a 15 year slog just to get his money back.

If you are leased, you already probably conveyed away 80% of the value of your mineral acres for the lease bonus, and a royalty on what is sold, and you are probably subject to deductions from your royalty so if you bargained for 20% royalty, your net effective royalty after deductions and taxes is probably closer to 17.5% or less. If you perform another transaction, selling your remaining interest in the mineral acres, your royalty, you are probably just going to lose even more money, anywhere in the rage from 30% to 80% over the long haul and 15% capital gains tax this year for selling.

Theresa, if you must have the money from the sale, do what you have to do. I just wanted you to know what the most likely outcome is.

If you will give the legal description of your acres, I would be glad to take a look at them and tell you what I can deduce from the information I gather. Possibly all your wells are Bakken and you could have Three Forks potential equal to or greater than your Bakken production. I know, I have acres in Dunn county also, one spacing with Bakken and Three forks production and one with just Bakken. If you are in the good part of Dunn county, you could eventually have 12-16 wells per spacing. How many wells do you have now and how many would you be giving up if you sell? The buyer is wanting to buy your acres with a fraction of your own money, if you wait, you should get all of the purchase price and more from the royalty and avoid the 15% capital gains tax. Let me know if you want my analysys of your acres.

 

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