Our family owns 320 acres in Billings County ND we received an offer for $75 per acre for a three year lease term, with a royalty of 1/16th, saying it is currently on Ragnar’s drilling schedule for this spring. Last summer this company offer to buy the mineral right for $100 per acre. Not sure if this is a good offer, I live in Nebraska and do not know what is happening up there. Any advice would be very much appreciated
We cannot help you with leasing activity unless you give the section, township and range. Activity will vary across the county.
The 320 acres is divided between my mother and her sisters family, the 160 acres that I have control of is Township 138 North, Range 100 West, Section 9: W1/2. I do not have the description of the other half at this time but can get if needed
As of now, I do not see any new leases in 9-138N-100W in the last 24 months. Some leases in section 24-138N-100W. There are some scattered leases to the north in 32, 35, 26 of 139N. Almost all are listed at 1/6th to 3/16ths royalty-most at 1/6th. (I think you meant 1/6th, not 1/16th which would be extremely low.) Bonus amounts are not public.
If you have not leased before, it would be wise to get an oil and gas attorney to review the lease as the drafts are not in the mineral owner’s favor.
Yes it is 1/6, I have been helping my mother with the leasing, she passed away 7 years ago. I think it was in 2012 she received $600 per acre we had an oil and gas attorney look at it then, not sure who to contact now. Three year ago I received an offer for $50 per acre and a week later Inter West Petroleum Corp offered $75 per acre and we went with that offer, this summer West Petroleum Corp offered to buy the mineral rights for $100 per acre and did not accept. They are saying that Ragnar’s drilling is schedule for this spring to start drilling, not sure if there is anything to it. Not sure what to do. They must think there is something there since they tried to buy it cheap