Burke County ND Oil

Anyone seeing new activity in Burke County? I have Petro Harvester trying to get us to sign a lease. I think it is a low offer but this market sucks. What are you all seeing? Any news on the horizon?

What are they offering for lease terms? Where is your property located?

$100 acre bonus. 16% Royalty

Which township and range?

163N 90W sec 6

PH is running a rig in 163N 91W. I think the royalty rate is fair, but you may want to hold out for a bigger lease bonus. I think they are using the down market to lock up leasehold at a cheap basis.

Thanks What is a fair bonus in that area? 3 year leases?

There is not a ton of activity to support large lease bonuses. I'd go for something in the $500-$700/acre range with a three year term.

in the hay day we only got paid $350 but we also had much higher royalty.

I figured you'd end up in that area so might as well counter with $500/acre.

any data to substantiate higher bonus pay in the area? We have 160 acres not leased.

No data other than PetroHarvester has a core area that they are trying to develop and prove out to flip. Is the other acreage located in generally the same area?