I just heard that $15,000/nma was being paid in Dewey County. No S-T-R was provided. Is there any truth to this? Respond if you have been offered or paid in the $$ range.
That’s not true
Maybe 15k total for the entire interest
I have minerals in Dewey County. I would say maybe 1500 is more like it.
Thanks that’s probably the case.
Thanks Colorado slim I’m sure that’s more like it.
The closest estimate would be found by recent poolings close by to the acreage.
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1500-2000 is about right. Poolings will be good reference but are only going to list what the operator can attest to, the bigger lease bonuses are come from the non-op parties.
How many Net Mineral Acres do you have. When you get offered a lease bonus you think that’s great but really it’s not because they people who evaluate the value price of your minerals if or when you try to sale them or they come to you wanting to purchase them, that 15000 is what they base the estimated value of your minerals and maybe times it by 3. So $45000.00 even though each well has the potential to bring in Millions and millions of dollars of revenue over a lifetime of the well in Nirth Dakota that’s now almost 40years thanks to fracking and if you sign a lease make sure that transportation cost are not paid by you . They will try to argue with you on this but truth is when a new well is drilled it produces a lot of oil Think about 25000 barrels a day and times that by 97.00 per barrel that $2,425,000 a day. If transportation costs were so expensive one there wouldn’t be any reason anyone would ever want to drill. Secondly these oil companies are not hurting for money so why penny pinch anymore money out of the mineral owners. Don’t sign a lease for more than 3 years and make sure it can’t keep on for a year at a time after the three years. These companies know how long a takes to drill a hole and it anit three years. All they are doing is wanting to pay you a very small amount to maybe drill a well one day but most likely just tie up your acres so their competitors can’t drill on it, and then you don’t make any money and now they come to you wanting to buy your minerals for nothing and your not making any money so it sounds like a good thing but it’s not check your county land auction website ours in ND shows how much per net acre they are buy the states for per net mineral acre som of ours is 15000 per net acre.
I mean this politely, but please show me a well in Oklahoma producing 25k barrels oil a day…
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Bradley, I don’t engage with any offers to purchase. So not knowledgeable about prices per acre to purchase.
I heard the 4 J Farms well in section 18 is producing around 750 + barrels per day.
OK does not have monthly production in that 25,000 bbl range. Many thousands of BOE (barrels of oil equivalent) on exceptional horizontal wells, but not for long. And don’t count on high oil prices lasting for many months either.
The question was specifically about leasing in Dewey, but it ended up in the Grady County spot. Dewey usually has lower lease rates than Grady. Leasing rates are based upon the competition at the time of leasing. And the rate would be tied to a royalty, so 1/8th leases will have a higher bonus that 1/4 (usually double), but most of us would want the 1/4th lease since it usually pays out far better in royalties over decades than the one time lease payment at 1/8th.
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