We were contacted by a landman about mineral rights we were unaware of in Williams County. They are offering $275 an acre and 1/6th royalty interest. It's Township 157 North - range 101 West. Any idea if this is a fair offer?
Marna Brigtsen
That is around the going lease offer in that area of Williams county but I’d ask for $450 and a 3/16th. I have seen $500 and 20% it depends on if they need yours and how many mineral acres you have. I have been buying minerals in Williams and other North Dakota counties so I have seen a lot of lease offers.
Tim Metz said:
That is around the going lease offer in that area of Williams county but I’d ask for $450 and a 3/16th. I have seen $500 and 20% it depends on if they need yours and how many mineral acres you have. I have been buying minerals in Williams and other North Dakota counties so I have seen a lot of lease offers.
Thanks for your response. They are looking to lease approx. 320 acres of a 1200 acre parcel. This is the farm I grew up on so we do have friends in the area who have said this offer may be low. Seems like a counter-offer is appropriate.
Tim Metz said:
That is around the going lease offer in that area of Williams county but I’d ask for $450 and a 3/16th. I have seen $500 and 20% it depends on if they need yours and how many mineral acres you have. I have been buying minerals in Williams and other North Dakota counties so I have seen a lot of lease offers.
WE too are in williams and williston not to mention many others. we are getting around 500 AC. if active in ther areas. if not active yet, 275-300 AC. keep inmind we both know how active the areas are. as for shares were getting around 1/5 they all tend to allow counters if you understand the lingo. so get educated on the terminology and give it a shot.
Good luck.
Thanks for your reply, Scott. Regarding our offer in Williams County, we offered to lease for $500 per acre with a 3/16th royalty for 4 years. They countered with $325, 17.50% royalty 4 years. that offer is good until tomorrow, Friday. So we feel our counter will be to either hold for the original offer or go to $450, 3/16th, 4 years. What is your opinion?
Scott Davis said:
WE too are in williams and williston not to mention many others. we are getting around 500 AC. if active in ther areas. if not active yet, 275-300 AC. keep inmind we both know how active the areas are. as for shares were getting around 1/5 they all tend to allow counters if you understand the lingo. so get educated on the terminology and give it a shot.
Good luck.
What do you know about Petro Hunt? We have had dealings with them before and just curious if you know how active they are in the area.
Marna Brigtsen said:
Thanks for your reply, Scott. Regarding our offer in Williams County, we offered to lease for $500 per acre with a 3/16th royalty for 4 years. They countered with $325, 17.50% royalty 4 years. that offer is good until tomorrow, Friday. So we feel our counter will be to either hold for the original offer or go to $450, 3/16th, 4 years. What is your opinion?
Scott Davis said:WE too are in williams and williston not to mention many others. we are getting around 500 AC. if active in ther areas. if not active yet, 275-300 AC. keep inmind we both know how active the areas are. as for shares were getting around 1/5 they all tend to allow counters if you understand the lingo. so get educated on the terminology and give it a shot.
Good luck.
I have minerals in 159/101 and have been offered $250/acre & 1/6 royalty - 5 yr lease by Hunt. I think it is too low and too long a lease period but the area is unproven so don’t know if I could get a better deal.
You have nothing to loose by asking for a better deal, I’d ask for 3/16th and only a 3 year lease.
I received an offer to lease from North Plains Energy in T-154N, R-98W. Offer of $250/net ac, 1/6th royalty, 4 year lease. I’m not familiar with North Plains Energy except what is on their website. Does anyone have any insight on this company and their offer? Thank you.
OK, I’m confused because I’m sitting here reading my mother-in-laws contract that she just got from North Plains Energy, this week. She has not yet signed it. It is for the exact same location as the last guys on this forum (KC on April 22)I She also received an offer to lease from North Plains Energy in T-154N, R-98W. I don’t think there is a mention of money per acre but it states 3/16th royalty, 3 year lease. I’m thinking she should get a lawyer to just look it over, any suggestions of trusty lawyers in the grand forks nd area? Thanks! Mike
KC said:
I received an offer to lease from North Plains Energy in T-154N, R-98W. Offer of $250/net ac, 1/6th royalty, 4 year lease. I’m not familiar with North Plains Energy except what is on their website. Does anyone have any insight on this company and their offer? Thank you.
I just received an offer from North Plains Energy for the exact same location (T-154N, R-98W) $700 per acre with 3/16th royalty.
Since KC, Mike, or Brian did not mentioned how many acres or section of the location that they have interest in – you all own in different sections (there are 36 sections in the township and range). An example: if the SW part of T154, R98W has proven oil then it would go for a higher per acre, if the NE section is unproven then it could go for a lower per acre. It’s not likely that two properties located directly next to each other would get first time offers so significantly different (i.e. $250 and $700).
North Plains is very active in that area but so is Continental Resources and other companies. The North Dakota state website can tell you where the nearest wells are, who is drilling, who is buying leases and a lot more info. Personally I wouldn’t take anything less than $600 and 1/5 royalty in that area – just sayin’. There is a lot of new activity in 155/97-98 through 157/97-98 and a ton of state leases in 153/98 that were just sold at the August 3 auction.
Do your homework! and good luck
ND site: https://www.dmr.nd.gov/oilgas/
P.S. NPE completed a well at SWNW 13-154N-98W on July 28 and it produced an average of about 790 bopd for the four days left in the July reporting period.