Hello, A few months ago Hunt offered my family $50.00 per acre and 1/8th royalty for a 10 yr. lease at sections 5, 7, and 8-18N-52E. We said no way.. Havn't heard from anyone since. I have read in here that it is slow right now. Does anyone know why?? I have heard that the oil companies are concentrating on South Dakota because the state is offering more benifits.. Has anyone heard this??? Has anyone heard when the activity for leasing might pick up again?? thank you, Robert
R.J.
Looking at the map, not alot of acivity in you immediate area. Looks like a couple of permits to the East of your area and several older producing wells to the North/Northeast. This is not to say that as time goes on, your area won't become active but currently drilling operations are focused mainly in Richland, Roosevelt and Sheridan Counties. Don't know about the South Dakota activity, but lack of rigs in the Montana area, mainly due to the ongoing North Dakota drilling, has been one reason that the developements in MT has been hampered. I would wait and watch as time goes on as more activity should migrate your way. By doing this, you will get much more bonus money and better lease terms. Never, never, sign a 10 year lease. The most I would go would be 3 years as alot can happen over that period of time. Also, I would not consider less that 18% royalty. Good luck and just be patient. Don't be hasty in signing a new lease.
Thanks Charles, for the information..A lack of rigs is a good reason for what's going on now..