Thank you both for your information. Its difficult living out of state to know what is going on physically on the property. I guess we won't expect much in the way of drilling. Our current lease runs out next year. We'll see what happens.
Are you familiar with these websites? I am also out of state and we have found these very helpful to keep track of what is going on.
Greg thank you for your information, yes I am familiar with the two websites, I look at the GIS each week when it's updated. I cantacted some family friends in Dickinson who will drive by and look. I hear that there is oil is the three forks area and Marshall so it looks like that area is going to be drilled soon. That area is about 8 miles south of our land and the wells already underway are about 6 miles west of our land, I hear ND highway 8 in that area is the dividing line where wells are being drilled. I contacted Cont Resources, they say they have no budget to drill in my leased area. It would appear to me that nothing will be done on our land.
Mr Turnbow, I think every rig Continental has is spoken for for the next couple years unless they have ordered some more.
Good to know, I don't think they planned on drilling ever. If it gets drilled it won't be Continental. That is what I get from talking to them, there is another oil company involved in the lease I would expect any drilling to be some other company.
We have been approached to a sign a lease with Marathon for our mineral interest in Sec 4, T143N, R93W. Offer is approx $1050 per net acre, 3/16th RI, 3 year lease. And, would like to know if this is a good offer or could we get better terms. Any current information would be appreciated!
KC, 143 - 93 is just off the eastern edge of current activity. So it is positive MRO wants to lease you, especially on a three year basis. Regarding the bonus offer, if possible check with others in that immediate area for a comparison. Though off hand I'd say you have a reasonable offer. However, I'd push them for a 1/5th royalty (20%) instead of the 3/16th (18.75%) offered. My guess is that they will agree to it. 20% has become common in the area. Good Luck.
Eastern MT - Thank you for the information.
Kc ,Why not ask Marathon, What's the difference between a Texas Acre and a North Dakota acre?
Their paying $25,000 a acre in Texas ( Google it )
Mr. Dolan, you might check the date on that $25,000 per acre, it may not apply now that gas is $2 per mcf.
Doing a bit of research on what Marathon did in Tx, they obviously think they bought the cream of the crop including some already drilled and producing acres. I still wonder about all the barrels of oil per day "equivalent" that I saw in the numbers as gas has fallen substantially in the time since the purchase was announced. One difference I can see between my acres and those in Tx is that mine have produced little gas, what little gas they did produce was very rich with a btu rating of 1.4. I think the greatest difference is between markets. 10 years ago you could lease about as much as you wanted in ND for $50 an acre or less and much of it at 1/8 royalty, in Tx they would run you off if you made such an offer 10 years ago. I've heard it said that owners with minerals in ND are mostly unsophisticated, sounds better than ignorant, but I think that's what they mean. Ignorant isn't a bad word, it just means you don't know, or are unaware. We are learning. Too bad probably 2/3 of the really prime producing acreage is already HBP. The word is out, even the state of ND has raised the royalty it demands on leases. I hope everyone gets to make the most of the advances that have been made in bonus and royalty [ better well tech also ] and gets a good well, or 6.
HI Everyone. I think I asked this question before. I talked to a landsman breifly who told me to be sure to get a pugh clause in the next lease we sign. I think the state of North Dakota set a good bar on price per net acre in leasing of at least 1000 dollars an acre. Also does anyone know if 1/5th is possible to get? Is anyone getting that high of a royalty? Also is it better to do a shorter lease? We signed a 5 year lease and it runs out in one year. I also hear oil companies are at least 500 wells behind in fracking. The wells are getting drilled but there is not enough fracking units available, which could delay a producing well be a lot of time. Does anyone have any information on the lack of fracking getting done on these wells that have been drilled? Our current lease as I discussed earlier is 3/16th and we were paid $250 per net acre. At the time it was considered good money.
Mr.Turnbow, the Allan 17-1H in the next spacing over is inactive, the state has already sent letters that it should be put into service, put on temp abandoned status, or plugged and abandoned. The Allen started out as a well by Traker but was later sold to Hess. I think Hess must have seen some potential or they wouldn't have acquired the well. The Allan did show some oil in the three forks and also in the Madison formation. I wish I could say that I thought you would get lease offers in the next few years, but I wouldn't lie to you. I do think that your area has future potential with the rise of oil prices and or technology in extracting oil, it just isn't right now
I received a division order yesterday for my minerals in T148 R 93 section 2. The interesting thing is that to the best of my knowledge, the two wells in that spacing have not been fracked yet. In the past I have received division orders only a month or two before the checks start arriving. Also strange is that the wells were never on the confidential list. A month or two should tell the tale.
Mr Kennedy, thanks again for your information. I saw a confidential well about 5 miles west of our section so it peaked my interest. Our area again is 145, 91.
I have just received 2 more proposals to drill wells on the interests I have in T-148 R-93 section 2, these will be Three Forks formation wells and if drilled will bring my total up to 14 wells.
Congrats RW,
If you're not careful, we're going to have to refer to you, such as the Dugger Family. Only you will be 14 and counting. (oil wells vs. kids) everyone should have at least a dozen or more of those. :))
Thank you, Snues. It's getting to be alot to keep track of alot to keep track of but I can deal with it. 14 kids would be more wild indians than I think I could handle.
LOL RW,
A dozen or more kids would put me in the nuthouse, on the other hand, a dozen or more oil wells would possibly put me on the beach in Hawaii sippin margaritta's.
Seriously, I am sure it is quite a task to keep all the data and information for each well, and each company that you're dealing with as drillers. Please keep good notes on the do's and don'ts; so if the rest of us are fortunate enough to get a well or more, we'll know what works best in the long haul.
It will be very interesting to see the results of your newest wells and how they compare to the older wells and the older technology they used for those; even when it wasn't all that long ago. Hopefully it will get all wells to perform better as they proceed.
My lease is up and I'm waiting for my well to stop producing to get a better % because they stiffed me when I first found out about the rights I inherited. Is this true and how long does it take before I can get a better %. Now, I'm only getting $200.00 bucks a month. Robbery is what I call it. Please help>