greetings!
i have gotten some nice feedback here THANKS.
My 88 year old dad has 173 acres for lease in Sheridan County.
TAQA is drilling in an adjacent township and has applied in one of his townships. His acreage is spread out about 48 different pieces.
We have been contacted by Kelly Oil and Gas out of Michigan..Anyone heard of them? And know what they do ? Robinson sounds like the person calling the shots there.
He is anxious to lease and has been offered $100.00 per acre for 5 years with 1/6 th.
Any help appreciated
Dave
Dave,
Go to the Bakken Shale Discussion Group (google search on that name) and there's great info that you need to know before your dad signs any leases.
My family owns leased minerals in Sheridan County and although the activity is not what it is in Williams County, ND, don't let your minerals go for those prices and terms! Don't accept anything less than 3/16.
If you've got minerals all over the place, put that data on a spreadsheet, put a map on your wall of your holdings (Township/Range/Section). Visualize the number of leases you will need if you were to lease each holding. You need multiple leases, a separate lease for each section.
I know some parts of Sheridan County haven't had much recent leasing activity and your dad is ready to sign asap but the area IS heating up, and there will be more offers. Don't jump at the first offer. You'll regret it.
Bertha
Bertha,
Thanks for the reply.
Hope you are doing well today. It's finally warming up here in Minneapolis.
When you refer to a 'section', I'm thinking like "T35N-R57E" ?
In evaluating lease values, I've noticed the state of Montana has public leases they offer, every 90 days, the next one being March 1st. When someone leases property owned by the state, have you any idea what percentage ovveride they retain as I can easily see what they are paying per acre.
Kindest regards,
Dave
Bertha Rodda said:
Dave,
Go to the Bakken Shale Discussion Group (google search on that name) and there's great info that you need to know before your dad signs any leases.
My family owns leased minerals in Sheridan County and although the activity is not what it is in Williams County, ND, don't let your minerals go for those prices and terms! Don't accept anything less than 3/16.
If you've got minerals all over the place, put that data on a spreadsheet, put a map on your wall of your holdings (Township/Range/Section). Visualize the number of leases you will need if you were to lease each holding. You need multiple leases, a separate lease for each section.
I know some parts of Sheridan County haven't had much recent leasing activity and your dad is ready to sign asap but the area IS heating up, and there will be more offers. Don't jump at the first offer. You'll regret it.
Bertha
Hi, Dave,
Montana state land leases are for 10 years with a 1/6 royalty (16.67%). They also pay $1.50 per year per leased acre rent. While it can give you an idea of trends, it's really like comparing apples and turnips. Look for more apple information. Are your dad's neighbors getting any leasing offers?
There are 36 (1 mile by 1 mile) Sections within a Township. Your land description should have a township, a range, and a section (probably part of a section). If your dad owns the surface land, these descriptions will be on his Sheridan County property tax statements.
Bertha
Bertha,
We also have minerals located in Sheridan Co. ; area is as follows: T31N;R59E which is located near the Roosevelt Co. line. I think there has been a drilling permit issued near this area just recently but haven't seen any evidence of drilling. Have you heard of any activity in this area? Our minerals are under lease until 2013 but I really don't expect any activity on our mineral area since drilling activity in Roosevelt and Sheridan Counties are moving very slowly.
Greetings Jerry,
Do you have a mailing address. I can send you a copy of the acreage dad would like to lease , sometime in the next 3 months. I leave for Kenya later in the week. I'll be gone 4 weeks.
Kind Regards
dave
Jerry:
Are you familiar with Roosevelt County leases? If so, what is the current $/acre bonus in the area of T30N;R59E. We have minerals in this area which are currently under lease til 2013 but was wandering about the current lease status of this area and the possibility of well being drilled in this area in the next year.
Jerry L. Bastian said:
Hi Dave,
I sent my contact info by way of a friend requests, you should get it before this.
Thanks - Jerry
Dave (Daniels/Shridan County) said:
Greetings Jerry,
Do you have a mailing address. I can send you a copy of the acreage dad would like to lease , sometime in the next 3 months. I leave for Kenya later in the week. I'll be gone 4 weeks.
Kind Regards
dave
Hi Charles,
I will get back to you tomorrow, Tuesday at the latest to address your question. .
Jerry
charles s mallory said:
Jerry:
Are you familiar with Roosevelt County leases? If so, what is the current $/acre bonus in the area of T30N;R59E. We have minerals in this area which are currently under lease til 2013 but was wandering about the current lease status of this area and the possibility of well being drilled in this area in the next year.
Jerry L. Bastian said:
Hi Dave,
I sent my contact info by way of a friend requests, you should get it before this.
Thanks - Jerry
Dave (Daniels/Shridan County) said:
Greetings Jerry,
Do you have a mailing address. I can send you a copy of the acreage dad would like to lease , sometime in the next 3 months. I leave for Kenya later in the week. I'll be gone 4 weeks.
Kind Regards
dave
Philip:
Is there much drilling activity in the Sheridan County area? We have minerals, which are currently leased, in T31N;R59E. I haven't seen many permits issued for this County and figured that when the activity begins to move West out of North Dakota, it should pick up.
phil s. said:
Hi my name is Philip Swearingen and I am also a Oil & Gas Landman leasing in the Sheridan County area. Please contact me at Philip.Swearingen@gmail.com
Thanks,
Philip Swearingen
We have now been offered $400 per acre for 3 years with 3/16 and they want an option for 3 years additional at $350.
thoughts?
thanks
Extensions are, I would say never to the mineral owners benefit. If the primary lease term expires with no drilling the lessee is in the catbird seat. If your minerals were were worth less they wouldn’t pick up the option. If they were worth more they would lease you at the low price and hold and drill or they will sell your lease to someone else and reap the profit. If it’s worth $400 acre and 3/16 now, it could be worth the same in 3 years, or it could be worth $1400 acre and 1/5th royalty. I think a straight 3 year lease would be best for you, and I’d certainly never agree to a 3 year extension for LESS than the first 3 years.
Dave:
I haven't been keeping up with the bonus/acre amounts in Sheirdan County so can't help you on that. The royalty % sounds good but the 3 year additional does not. I will never agree to an extension beyond the 3 year lease due to the fact that if the acreage is undrilled at the expiration date and the area has become "hot" with drilling activity, then the bonus/acre will be alot higher, but you will be subject to the lower agreed amount.
Dave (Daniels/Shridan County) said:
We have now been offered $400 per acre for 3 years with 3/16 and they want an option for 3 years additional at $350.
thoughts?
thanks
Charles and RW thanks for the feedback!
I am reviewing a lease for dad.
Sheridan county variour parcels in Range 56 and 57 close to North Dakota Border.
They are offering 3 year lease $400 with 3/16th and a 2 year option for $350.
Your thoughts are appreciated. I think the 2 year option should be $400 and 20-25%.
What do you think?
What is going on in eastern Montana??
He now has 3 calls in the last week.
Thanks
Dave
Bertha,
Whats new in Eastern Montana.
We passed, as you suggested, in Feb, now we are being offered $400 per acre for 3 years and 3/16 and a 2 year option for $350.
Thanks,
DaveBertha Rodda said:
Dave,
Go to the Bakken Shale Discussion Group (google search on that name) and there's great info that you need to know before your dad signs any leases.
My family owns leased minerals in Sheridan County and although the activity is not what it is in Williams County, ND, don't let your minerals go for those prices and terms! Don't accept anything less than 3/16.
If you've got minerals all over the place, put that data on a spreadsheet, put a map on your wall of your holdings (Township/Range/Section). Visualize the number of leases you will need if you were to lease each holding. You need multiple leases, a separate lease for each section.
I know some parts of Sheridan County haven't had much recent leasing activity and your dad is ready to sign asap but the area IS heating up, and there will be more offers. Don't jump at the first offer. You'll regret it.
Bertha
Dave:
I would only agree to a 3 year lease for 20% royalty and state that negotiations would continue at the time this lease expires as you don't know what the going rate will be (bonus/acre) in 3 years. If this area heats up, it could be bringing prices per acre in the neighborhood of ND prices. I have always put more emphasis on the % royalty instead of the bonus/acre, because this is what counts in the long run.
Dave (Daniels/Shridan County) said:
Charles and RW thanks for the feedback!
I am reviewing a lease for dad.
Sheridan county variour parcels in Range 56 and 57 close to North Dakota Border.
They are offering 3 year lease $400 with 3/16th and a 2 year option for $350.
Your thoughts are appreciated. I think the 2 year option should be $400 and 20-25%.
What do you think?
What is going on in eastern Montana??
He now has 3 calls in the last week.
Thanks
Dave