My family has the mineral rights deed to 560 acres in NE Montana. When you overlay the map of the Bakken Oil Field it lays well placed within the field. We do have a lease. Should we hold on for the long term?
Gary:
Could you be more specific in regards to the area where your minerals are located? In response to your question, should we hold on for the long term, I would recommend that you consider holding these minerals as this is a sizable holding and developments of areas take years to accomplish. Currently, your concern would be when this lease expires as you should be doing your homework in regards to your area. I am opposed to any lease longer than 3 years and would never grant a lease extension. In regards to the bonus amount, this will be directly connected with the activity near your mineral area. Since you are currently leased, again, you should be familiarizing yourself with what is currently occurring in your area.
Southeast of 4 buttes montana
Gary:
I was referring to the Township/Range/Section. By providing this info, I can view the GIS map on the web and better understand where you are located and what's going on in your area.
Gary,
With that much acreage, you have a considerable number of options. Your decisions depends on the expectations of the property over time vs the geologic potential over time. The asset is big enough to find out what you may have in the future. Being within the Bakken is a very small but good start. Shallower and deeper zones are very valuable in many areas so don't throw the baby out with the bathwater. The known characteristics of the Bakken allows you to think very long term. Decades even. Get some sound advice concerning the long term potential.