HRC/Halcon seems to be interested in Burke County. I've heard $150-$400 an acre (so who knows) plus 5 yrs and 1/6 royalty. Don't know what the lease looks like yet, but $150 and 1/6 seem low for 5 yrs..........
Dianne, the economics differ with how much acreage one has. If you have 160 net mineral acres, $300 an acre is a considerable sum and harder to pass up than if one has 2 net mineral acres.
Here is a question. Some leases in ND are signed at a 1/6 royalty interest rate, some 3/16ths, rarely 20%. Is it correct that in Texas 20-25% is the norm? Why are the royalty interest rates offered lower in North Dakota? Why did I read that if you have too high an interest rate there would be more deductions?
Shale Oil made front page news in my local newspaper- that business is picking up again. And thank-you Dianne Arnold for giving some info about HRC/Halcon offers.
We just signed in Burke at 1/5 on 180 net acres , 5 year term with 3 year extension option, at $500/acre. This offer came in two weeks ago and we negotiated up on first offer.
AD, Did you sign with HRC or someone else? Where in Burke are these acres? Mine are in the eastern Dimond (I think) - about 160 net acres. I've been told that the package is coming so I haven't had a chance to read the lease yet.
My overall experience with Diamond Resources is that a lot become title problems shortly after successful drilling and that the royalies stop. I refuse to talk to them anymore.
If you shake hands with Diamond Resources, in my opinion you should count your fingers afterwards. I say this from 7 years acquaintance. If Diamond Resources should contact you? Retain a lawyers services immediately!
Dianne,
We signed with Acqyre. As to the location we are 160N Range 94.
Hi AD, I'm wondering who Acqyre is representing? Are they an oil company or an investment company?
I was trying to figure out the areas that are being leased and I think they are mainly the Cottonwood area- over and into the Noble area. I saw that 160N94W is the North Tioga area, right?
So leases are being filed for all around my mineral interests. A lot are from Diamond Resources who has now transferred the leases to Spear Energy, LLC in Bottineau, ND. Has anyone heard of Spear Energy?? Oil company, investor? Google search only comes up with a solar energy company with a name close to that. I did not lease with them. Looks like many were signed for 15% or 16.67%. for 5 years. HRC has a bunch of leases in the same areas, but I don't know their lease particulars.
Mary Beth,
Acqyre is Liberty Resources, Denver.
Is anyone aware of new leasing activity for the area around 162-94-16 in Burke County? If so, what are the terms offered for 10 acres or so? I understand that Diamond/Continental may be interested in this area, but I would prefer to shop the lease to another company.
I own some working interest in Burke (T161N, R94W), interested in taking offers. Please send me a private message if you are interested in getting details.
Thank you!
Ben Samuels
I read somewhere that if oil was at least $60 a barrel, then Burke County would be profitable for drilling again. If this is true, what would be fair pricing for leasing minerals now? Has anyone been contacted lately? My minerals are in T159N R90W. I'm not sure of the best way to advertise anymore, it's been a long time for prices to come back up. Thanks for any information.
Just received a lease offer from Continental Resources (via our "friends" at Diamond Resources). It's for a small interest in several parcels within Section 4, T162N, R94W. Offer is for $150/acre and 1/6 royalty. SEveral family members own similar small fractional pieces. While I recognize we don't have much bargaining strength, this seems like a low offer based on earlier deals we've had in the general area. Any thoughts would be appreciated.
Mr. Anderson:
I just received an offer for a few acres in Section 16 on the same terms. The bonus offered is double what they offered in late November, 2017 and they finally deleted the warranty of titke clause which should never have been in the lease anyway. I think they also made a third offer back in April, 2017, but I never picked that up from the PO as the property was not yet in my name.
In any event, I stopped leasing to Diamond many years ago. At this point, I'd rather see if some other company makes a better offer or take my chances going non-consent.
Further to my last comment, Petro Harvester has 3 active producing wells nearby on sections 17, 19 & 23. These were drilled in 2010 and 2012. I don't know how much these are producing, but maybe Mr. Kennedy knows.
Questions on leasing in Burke County now in spring 2018. Does it look like activity will come back? My family has leased before through Diamond Resources and Continental, but that lease has lapsed. We're wanting to re-lease like many of you. We're in T161N, R93-94W, which is in the Leaf Mountain township. Looks like some of you do not like Diamond. We had no issues with them, but would like to know who would be better these days. Any info would be greatly appreciated.