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Bakken Shale - Oil & Gas Discussion


Bakken Shale - Oil & Gas Discussion

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

Members: 379
Latest Activity: Oct 7

Discussion Forum

Looking for Mineral Rights to Lease

Started by Scott Varner. Last reply by MFMB Oct 7. 12 Replies

I am currently seeking landowners and mineral owners to lease from... Anything from 2-3 sections and up to 15-25 sections....Continue

Non participation

Started by Pat Maloney. Last reply by Jamie Guthrie Sep 20. 3 Replies

Hello everyone,I have had great assistance in the past from this group.  My family have 16 wells in Williams County, 13 working wells and 3 LOC.  We are still waiting on getting more money from our…Continue

Appraisal for Mineral Rights

Started by Kristi Gray. Last reply by paula seabolt Jan 24. 44 Replies

Has anyone had their mineral rights appraised for potential inheritance tax purposes?If so, what is the process, what are the mineral rights potentially worth and how does the government handle the…Continue

Keywords: Rights, Mineral, of, Appraisal

Royalty Loans

Started by Teri Hanson. Last reply by Donald Skotty Jan 18. 14 Replies

Has anyone ever heard of getting a loan based on anticipated royalties, when there isn't even any drilling going on yet?Continue

Comment Wall


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Comment by r w kennedy on October 4, 2016 at 12:31am

My brother tells me he received another 4 well proposals for 149-96 section 9 Mckenzie county. His mail runs a day faster than mine. Three of the wells costs are sub 7 million and one is estimated to be slightly more than 7 million dollars.

In 2011 these would have been 10+ million dollar wells. Todays oil prices are not ideal but they will not kill the Bakken. The operators know where the oil is, they know to a close order how much it will cost to get out. Operators will not forget where it is. If they have a well holding a lease, that's sunk cost and they can afford to wait.

Comment by M Barnes on September 20, 2016 at 3:11pm

I agree with Mr. Kennedy.  No where near dead.

Comment by r w kennedy on September 20, 2016 at 3:08pm

The Bakken has not begun dying. They are still drilling wells in the sweet spots. I hear there are about 1200 drilled uncompleted wells in ND. I have had wells drilled in spacings where my mineral rights are in McKenzie county and in Dunn county, late 2015 and mid 2016.

They are drilling much better wells with much better completion techniques that cost 1/3 less than they did 3 years ago.

I would make sure you have something better to go to before you cash out of the Bakken. Much better if you consider the 15% capital gains tax you are going to have to pay.

Comment by Jamie Guthrie on September 20, 2016 at 2:24pm

Just saw an article today title "The Death of the Bakken Field has Begun".  Sounds discouraging, and I am open to other opinions on the topic of declining production in the Bakken, but I think there is a lot more exploration to be done in North Dakota.  If you know of anyone seeking to lease open minerals, sell mineral rights, or needing consulting work, please friend me and message me for opportunities.

Brighter days are ahead!

Comment by r w kennedy on March 1, 2016 at 12:37pm

Thank you Ms. Barnes, I stand corrected. As far as I know we have always exported refined fuels and lubricants also which I didn't mention.

Comment by r w kennedy on March 1, 2016 at 12:28pm

Daniel Baca, someone wondered if I would have something to say about your posts and I do.

If someone wants to sell, it's their decision. I, and I don't think anyone else here would want to stand in their way...as long as it were a carefully weighed and informed decision.

Yes, keeping your minerals includes risk that nobody will want them. This is a fairly well known risk that our families and we have been dealing with for 50-120 years or so. I think we have hashed it out in that time. You don't gain a lot of respect by coming on here and giving the sweepstakes spiel about you may have already won.

I can instantly tell one reason why you want to hold property rather than cash. The US dollar has been devaluing at an alarming rate and one of the ways government may try to fix problems is to devalue the currency by about half and pay all debts at face value. An apple is an apple, a barrel of oil is a barrel of oil and it will be sold at market value no matter where the currency goes. Remember the stories of a wheelbarrow full of Lira to buy a loaf of bread? There is nothing that says it can't happen in the US. I would rather own mineral rights than cash. Thanks.

When one talks about getting a better return on the money gained from the sale of mineral rights, just because you have a chunk of cash doesn't turn you into a financial expert. Nor does hiring people who purport to be financial experts rationally equate to actually making any money on your investments and often quite the reverse happens. Also you didn't mention the 15% CAPITAL GAINS TAX which is going to be a huge cliff to overcome before you could start making money on any investment with money gained from the sale of your mineral rights, not so? Reasonably safe investments right now are not beating the rate of inflation. Where is this good deal you are trying to help us into? I'm not seeing it.

Daniel, I hope you will forgive me for speaking the truth but you are just another person trying to operate OPM, other peoples money. You have nothing at risk in the deal. The money is not yours. You are trying to invite yourself to the table set for those who have something of value, minerals, and those who have money and wish to buy. Inviting yourself to dinner is bad form just about anywhere I have ever been and I have been a lot of places.

As an example, rather than starting your own website which doesn't cost even $500 and allow people to come to you, you come here and violate the terms of service soliciting on this site. When you stop looking for something for nothing and actually bring something to the table, maybe you will be better received.

Comment by M Barnes on March 1, 2016 at 11:42am

Just a small correction.  First tanker of LNG to come out of the lower 48 from the Chenier plant.  We have been exporting natural gas in LNG form from Alaska to Japan for decades.  Also, first shipment of sweet oil has gone out as well.  Our refineries were built to handle the mostly sour crude that the US produced until recently.  The shale oil is sweeter, so the refineries cannot handle it as well.  Overseas refineries would be able to use it.  So once the supply and demand get equalized, things will be much better. 

Comment by r w kennedy on March 1, 2016 at 11:35am

It has been slow of late while I was away on the other side of the world with my bad internet connection. I am back in the US now.

First order of business is if you have held your minerals this far, I believe we have seen the worst that is likely to happen. Take heart.

The cost to drill complete and produce a well has come down drastically. I always knew the oil companies were overpaying for services by at least 30% and it appears that that was conservative. Top of the line Bakken wells that go according to plan cost 7-7.5 million dollars. I had one well that the operator, KOG claimed cost 14.5 million dollars when the paperwork claimed the cost overrun was about $60k. I am looking into that. Paying too much for services was why almost everyone said that Bakken production required at least $70 per barrel. This is no longer true. It is true that we won't be making money hand over fist at these prices but they won't be down forever.

A large part of why the price of oil is down is the fact that since the price of oil has fallen that US oil imports have INCREASED. There is a very simple reason for this. The BIGGS can still make a decent profit on imported oil so that is what they are doing. Foreign countries signed horrible oil leases because they needed the money, some repudiated those leases but many did not. It may cost as little as $20 per barrel to get that oil to the US, to many different points in the US since it is coming on a ship, and probably not going to a hub but more directly to a buyer so it cost less to move. It is also heavy oil which is better for plastics and lubricants which Bakken crude is not. Exxon reported making just under 1 billion dollars, down from about 4 billion the year previous. In their shoes would you rather earn 1 billion or would you rather take a loss? I don't own their stock but if I did, I would want them to do exactly what they did and possibly more of it! As it is, I don't like it but I understand it.

I won't go deep into the geopolitical equation but we could have war in the middle east at any time. If it should happen, which I don't want a war, who does? Would we ever be in a better position for a Mideast war than to be brimming with fuel?

About a week ago the US exported it's first tanker of natural gas. It is an incredible pity that it happens now and not a few years ago when the price was 300% as high(Remember right after Fukushima in Japan?), but it is a start. From small things large things grow. We may even supplant Russia as the supplier of natural gas for western Europe. That would be a handful of years away if it happens but it would be a logical step from our prospective and Europe's.

I am glad to be back and I look forward to weighing in on a few subjects.

Comment by Joan M Osland Graffius on February 24, 2016 at 8:38pm

Does anyone own or know anything about UxBridge Oil. A North Dakota oil company

Comment by Bart Barton on January 6, 2016 at 8:26am

at least Kuntz has enough balls not to hide behind an alias


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