Oil & gas discussion group for those interested in Dawson County, Montana. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Has anyone received lease offers in Dawson County, Montana? I know Petro Hunt is actively pursuing the Red River formation.
List the legal description on where your minerals are located and I can give you a better idea. I have heard that Petro Hunt has paid between $200-$300 per acre depending on the area.
The lands are all of Section 15, Township 18 North of Range 52 East of Montana Principal Meridian, East 1/2 and Southwest 1/4 of Section 8, Township 18 North of Range 52 East, and Northeast 1/4 of Section 17, Township 18 North of Range 52 East MPM.
Under the mineral hub site, they stated in the oil and gas leasing activity for March 2011 there was an offer for $200 per acre in T19N, R56E with a four-year term and 1/6th royalty being offered. If you go to the Bakken shale site in this forum in T21N, R56E, they were finally able to get a price of $300 per acre and a four-year term after negotiating a while with Petro Hunt. Best of luck to you.
Thanks. I’ll look into it.
We own mineral rights located in Township 14N, Range 55E. Is anyone aware of any leasing activity near there? We own in Sections 6 & 7.
Had offer from Transcontinent Oil (TCO) for property in T21N but feel it is being low-balled… anyone out there?
We have 160 mineral acres in Dawson County, Montana, Township 21 North, Range 52 East, Section 28. We have been offered a lease at $70 per net mineral acre and 16% royalty. This seems low. Does anyone know the going rate in this area?
Thanks!
We had two oil companies get into a bidding war over mineral rights in Sections 15, 8, and 17. Due to confidentiality clauses in the lease contract I cannot give exact amounts, but you can do much better than $70/acre. Royalties of 15% to 16% seem to be the norm.
Katy, we seem to be your neighbors as close as I can figure. We are in Section 24. Is your offer from Transcontinent Oil out of Denver? Please let me know…we have just signed with them. We also had discussions with Petro Hunt. Offer you have is a bit low as Mr. Pringle states.
Would like to compare notes.
Hi There-
I too have an offer sitting on my desk for $100/acre in Township 21N, Range 50 East, Section 24 & 26. 5 year with 1/6th royalty.
Mr. Sheridan, if you are able, I would appreciate any assistance you can provide as to how much I should expect or how much I should counter offer.
Thank you for any information you can provide, it is much appreciated.
Mr. Myhre: That is exactly what we have and if it is TCO representing Slawson, they are not negotiating. We signed with a Pugh Clause and a “Shut In” well clause that we added upon advice. This seems to be going rate for Dawson at this time…most companies are busy now up in Richland and will turn their attention to Dawson in the future. Good news is that there are a few producing wells close to us in T21N now. Good luck!
Hello Mr. Sheridan, We don’t actually know who the oil company is. We were contacted by a landman who says that the oil company ‘doesn’t want its name out there.’ It is some company that is trying to buy up a lot of net mineral acres. We haven’t been contacted by any other companies with offers.
Hello, this is all very new to me. Any help/advice would be appreciated. We own mineral rights in Dawson County. Township 19 North and Section 9. We have an offer of $50/acre and royalty of 15% of production. Is this reasonable?
We own only 40 acres of mineral rights and have been approached with a lease offer. Would like to know if there is any activity in Dawson County, such as producing wells or drilling at the present time. Any info would be appreciated.
This forum seems to be dead. Is there anything going on in Dawson County?
Melvin, There is a little activity going on. Petro-Hunt is drilling some wells targeting the Red River formation.
I don’t see drilling as being dead any time soon in Eastern Montana. Whiting Oil and Continental are heavy players and trying to find a place to park an RV or even a hotel room at times is going to be hard to find. North Dakota raised the limits and lots of companies are now moving into Montana, Wyoming, and South Dakota.
Was reading in other forums, and read something about 640 acre drilling units. If you own less than that you have to share your percentage with other owners in that drilling unit which would drastically cut your percentage of income. Any comments on this?