We have mineral rights in Divide County - 161N-97W. We've just been offered a 3 year lease with a bonus of $800/acre and 18.75% royalty. Does anyone know what the prevailing lease terms are for this area?
Many thanks
Depends where your acs. are located. I just received $2000 bonus, 3yrs. and 3/16th. I have heard some people are getting $3000, 4yrs. and 1/5th.
Where are your acres that you just leased for $2,000 bonus, 3 years and 3/16th?
Steven Mortenson said:
Depends where your acs. are located. I just received $2000 bonus, 3yrs. and 3/16th. I have heard some people are getting $3000, 4yrs. and 1/5th.
i recently talked to a ND mineral rights lawyer who also happens to own mineral rights, he said that at 1500 / acre and 18.75 we were being offered we were being way low balled, he advised we go for 22%.
Good luck with getting 22%. I haven't heard of anyone getting that kind of royalty terms in Divide County, as yet.
I feel a bird in hand is better than two birds in a bush. If you wait too long to make a deal, and oil prices crash, or fracing is no longer allowed, you may not get anything.
I am still looking for specific info regarding current leases in Divide County near my minerals - 161N-97W. Steven, where/when did you lease for $2,000 bonus/acre? That's a huge difference from the $800 I was offered. Are your minerals in the Frazier field or close by?
I was offered 20% and 1500. 00 an acre on my second lease offer but have decided to go non-consent.
Donna, would you please share your partial legal on the property?
Maria , I'm not sure what you mean by partial legal?
My mineral rights are on the Wild Rose oil field , township 160 N- 97 W.
Maria said:
Donna, would you please share your partial legal on the property?
Many thanks, Donna. You answered my question with the township, etc. Now, if you don't mind sharing a bit more, would you tell us which company made the offers? The $800/ 18.75% offer I received was from Continental Resourses.
Continental resources and a private party. Continentals offer was the
1000.00 an acre and 18.75, I was advised to deal directly with the oil companys themselves and not a landman. I have decided to go no-consent based on advice and info from people who have gone non-consent ,oil production stats, info on the ND goverment mineral rights site and on the oil well that we own mineral rights on.Maria said:
Many thanks, Donna. You answered my question with the township, etc. Now, if you don't mind sharing a bit more, would you tell us which company made the offers? The $800/ 18.75% offer I received was from Continental Resourses.
My Minerals are in the Ambrose area. The first offer was $750 bonus. So, you can see, you can negotiate the terms. If your dealing with a broker, make sure you know who the lease is going to be assigned to. Make sure it's going to be assigned to a reputable company. You may want to negotiate directly with the company itself.
Maria said:
I am still looking for specific info regarding current leases in Divide County near my minerals - 161N-97W. Steven, where/when did you lease for $2,000 bonus/acre? That's a huge difference from the $800 I was offered. Are your minerals in the Frazier field or close by?
Got an offer from a landsman, for 1000/acre 3/16 royalty for land just north of the Crosby ND airport.
Said he represented Bakken Hunter.
The lease he proffered had a interesting option clause:
The would have the right to extend the lease in three years for another three years for the same bonus.
I said no to the option. They dropped the offer to 800/acre.
When was this offer made and by who? I have rights fairly close to those coordinates and I have an offer similar to yours by Continental. After a little research I found no other company interested in this area. Continental is by far the most aggressive in adding to their leaseholds. In this general area - Marathon / no interest, Hess / no interest, ConocoPhillips / no interest.
The wells that Continental is drilling look to be fair to good and there are a good number of them to the East and North. Baytex is active in the area but I doubt they would offer more than Continental.
Maria,
I would agree that those terms seem a little low. I concur with many of the statements made by others representing FMV as between $1500 - $2000/acre and between 3/16ths RI & 1/5th RI. The township you identified has some 8 permits or spudded wells, all Hunt Oil, with Continental dominating the Twp to the East. The area does not appear to be the "best of the Bakken" but seems reasonably de-risked to a first 180 day average of 125 to 150 BOPD.
With no special benefit to myself, should your acreage be open, I can forward it to a 3rd party non-op group that would analyze it and if it matches their criteria for investment, acquire your acreage at a certain premium to your current offer. I may be reached by email at mchumo@droverstrail.com.
Steven, I and my siblings also have mineral rights in 161N and 97. Kathy
Steven Mortenson said:
My Minerals are in the Ambrose area. The first offer was $750 bonus. So, you can see, you can negotiate the terms. If your dealing with a broker, make sure you know who the lease is going to be assigned to. Make sure it's going to be assigned to a reputable company. You may want to negotiate directly with the company itself.
Maria said:I am still looking for specific info regarding current leases in Divide County near my minerals - 161N-97W. Steven, where/when did you lease for $2,000 bonus/acre? That's a huge difference from the $800 I was offered. Are your minerals in the Frazier field or close by?