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We were just offered $50 an acre for a 4 year oil lease for the Red River Formation. We don't know anything about whether this is typical or not. We are in the Western part of Slope County. Royalty fees offered are 1/6th if they get a producing well. We were told that the well, if it hits, would just be a 50 barrel a day well, not much. Any comments or advice would be appreciated. Also, can anyone recommend an attorney who specializes in this area?

Thanks to all -

Roxanne Hutton

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Replies to This Discussion

I think you should do some searching for more money we just signed for $500. per ac south east of amidon.DEW

To recommend an attorney, we use Diane F.Melbye, at 229 First st w box 1136 Dickinson nd 58602-1136 phone 701 483-1700. hope this helps DEW

Ms. Hutton, all I can say is WOW, there is obviously no money in it and they volunteered to drill a multimillion dollar oil well on or near your property just to help people in the area and put a few dollars in your pockets. I am impressed with such giving spirit, so much so that I might counter offer to take $25 per acre and 1/3 (33%) royalty instead of 1/6 because the well won't produce much. Just call it my way of giving back to such a generous company, because I realize that they must be cash strapped when it comes to bonus money.


Dean,  Can I ask who you signed with? We are in 135 sec 7 & 18, 98w

Tom


 dean e woodsend said:

I think you should do some searching for more money we just signed for $500. per ac south east of amidon.DEW

Thanks for the recommendation.  We are part of Sections 22 & 23. Is this close to you? Did you solicit oil companies?

dean e woodsend said:

To recommend an attorney, we use Diane F.Melbye, at 229 First st w box 1136 Dickinson nd 58602-1136 phone 701 483-1700. hope this helps DEW

They are too low on their offer in my opinion.  I wouldn't think it would be worth it for 50 bucks an acre. 

Both the lease acreage offer and production estimate appear low. Hard to imagine drilling the Red River hoping to hit 50bbls/day.

I'm curious where you got the production estimate ? Unless I'm missing something, we don't know within miles of where the OP's minerals are.

Steven Ilkay said:

Both the lease acreage offer and production estimate appear low. Hard to imagine drilling the Red River hoping to hit 50bbls/day.

We are in negotiations now for $200/acre. Our property is in section 32, slope county. Part of the family wants to hold out for $500.

Kurt, a township and range to go with the section 32 would pin it down. I believe there are several section 32's in Slope county, not that I want to pry. Whatever you lease for, I hope you get cash before you let the lease leave your hand and not a draft or order for payment/ bill of exchange. Give the lessee a copy, boldly marked copy to hold onto until you have cash then they can have the original, or let your bank act as escrow to hold and not release your lease until certified funds arrive.

Kurt erickson said:

We are in negotiations now for $200/acre. Our property is in section 32, slope county. Part of the family wants to hold out for $500.
Sorry RW...just now getting back to this forum. Township 135 N, range 101 West of the 5th P.M. We have section 30 SE 1/4, section 32 S 1/2

Kurt, My family is in 135 98w sections 7 & 18. I am wondering who you are negotiating with?

Tom

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