Does anyone know about this company and if they are legitimate?
Jill:
This company is listed on the web but I have never heard of them. My guess is that they are a group of lease brokers interested in either buying or leasing mineral areas in the Williston Basin. There are several companies in this area doing the same type of business and some have been around even before the Bakken Shale exploration began. If you have mineral holdings, I would only lease to legitimate oil operators who have a good track record of developing mineral areas.
My Grandfather owned minerals that were vested unto my siblings and I after he passed away that sit in Mountrail County.... I too have been contacted by Dynamic Resources and are in the middle of negotiations with them for our minerals that are located inside their "future drillsites". We were approached at first with $30 for a bonus...then they called back and offered our family $45 for a bonus with one-sixth royalty with a 5 year lease but mentioned all family members had to be on board to get the deal. Needing some advice from the locals in this area about this lease offer we have received. My sister is an attorney in Oklahoma who deals specifically with oil and gas leases and is in the process of reviewing Dynamic's paperwork. She knows the ins and outs and we are just sitting on it until we hear on what to do from her. Has anyone made any negotiations with this company?
Rikard:
Where in Mountrail County are you're minerals located? Township/Range/Section? From what you stated, sounds like they are "low-balling" you on the bonus, royalty and term being 5 years. Don't consider signing anything under the stated terms.
the minerals are located in Mercer County, ND. Please let me know what your sister finds out about Dynamic Resources. They offer a 5 year lease with net acres to be determined at $30.00 per net acre, 14% royalty. Don't know what drilling activity is taking place in Mercer Co and if this is a good lease to sign. Wish I knew more about the company.
Rikard W. Schwede,III said:
My Grandfather owned minerals that were vested unto my siblings and I after he passed away that sit in Mountrail County.... I too have been contacted by Dynamic Resources and are in the middle of negotiations with them for our minerals that are located inside their "future drillsites". We were approached at first with $30 for a bonus...then they called back and offered our family $45 for a bonus with one-sixth royalty with a 5 year lease but mentioned all family members had to be on board to get the deal. Needing some advice from the locals in this area about this lease offer we have received. My sister is an attorney in Oklahoma who deals specifically with oil and gas leases and is in the process of reviewing Dynamic's paperwork. She knows the ins and outs and we are just sitting on it until we hear on what to do from her. Has anyone made any negotiations with this company?
the minerals are located in Mercer County, ND. They offer a 5 year lease with net acres to be determined at $30.00 per net acre, 14% royalty. Don't know what drilling activity is taking place in Mercer Co and if this is a good lease to sign. Wish I knew more about the company.
charles s mallory said:
Rikard:
Where in Mountrail County are you're minerals located? Township/Range/Section? From what you stated, sounds like they are "low-balling" you on the bonus, royalty and term being 5 years. Don't consider signing anything under the stated terms.
Ms. Nicholson, if you could give a legal description I could do a little looking into your specific situation. Mercer county has not been very hot except in the northwest corner for some time now. If you have acres in the NW corner of the county it's possible that you could already have a well and or good offset production from nearby wells and I would want to know before entering into negotiations with anyone.
r w kennedy said:
Ms. Nicholson, if you could give a legal description I could do a little looking into your specific situation. Mercer county has not been very hot except in the northwest corner for some time now. If you have acres in the NW corner of the county it's possible that you could already have a well and or good offset production from nearby wells and I would want to know before entering into negotiations with anyone.
Township 143 North, Range 90 West, Section 4, Lot 2
Township 145 North, Range 88 West, Section 29
Township 145 North, Range 90 West, Section 19
Township 146 North, Range 89, Section 18
Township 146 North, Range 90 West, Section 25
r w kennedy said:
Ms. Nicholson, if you could give a legal description I could do a little looking into your specific situation. Mercer county has not been very hot except in the northwest corner for some time now. If you have acres in the NW corner of the county it's possible that you could already have a well and or good offset production from nearby wells and I would want to know before entering into negotiations with anyone.
Ms. Nicholson, while there are no wells on those legal descriptions there is a well close to some of them in 146 -89 sections 31and 30. While it was not a great well, it was drilled in 2009 when the operators did not know as much about completing a well to get the best production. You actually have some acreage that is north and west of this well and I believe that is going in the right direction. While I would not expect a barn burner of a well in this area, I think that a profitable well could be drilled.
I believe that the offer you have in hand is probably from a speculator gambling that someone would want to purchase your lease from them for possibly 3 times what they paid you and 2.5% to 4% royalty above what they leased you for. They are taking a risk because your acres may not be drilled in the next 5 years. I do not know how many net acres you have but if you have many, even such a small bonus per acre could add up. If I had only 50 acres I would consider that the bonus was not big enough to pay for the legal advice that I am sure I would need to leave anything left over. I would at the very least, lease each drill spacing separately so that any acres in an undrilled spacing would not be held by production after the primary term of the lease by a well in another drill spacing, a sort of natural pugh clause.
14% is not a very large royalty after production, severance, state and federal income tax and post production costs deducted from your royalty. Your net effective royalty could be below 10%.
Some people would say that if it put a dollar more than you had before in your pocket that a lease is better than nothing but that isn't necessarily true if the terms of the lease are not good. There needs to be a certain threshold of benefit before I think a lease is more trouble than it is worth. There are pitfalls in leasing and the lease needs to pay enough so you can get legal help and have something left over, or what benefit did you get from leasing?
If you are not in dire need of a few thousand dollars, assuming that you have hundreds of net acres that they want to lease, you might consider speculating with the acres yourself by not leasing because it only "costs" you $6 per acre per year. I hope you find this helpful in making your decisions.
Apparently Dynamic Resources is in North Dakota to drill. My sister did extensive background research on them and records show they recently filed permits to drill in the Eastern part of Mountrail County. They have also informed my sister, the family attorney, to advise us of the "force pooling" laws in case we were to turn down their offer. Looks like they aren't kidding about getting rigs out on this part of the county.
Current offer from Dynamic Resources:
$50.00/ Bonus
1/6th / Royalty
5+3/ Lease Term
$75/ Extension-Bonus
Well great! I suggest you not take their word and read the forced pooling laws yourself NDCC 38-08-08.
Not to mention the fact that if you had substantial acreage no operator wants to carry a large, or a large percentage of non-consenting interests.
Also is the weighted average of those who leased in the spacing is 16% or greater, you would get 16% royalty if force pooled and have a chance at receiving 100% less the cost of production when the well and penalty is paid off. If the well never pays out and recovers the penalty you owe nothing out of pocket.
Permits are cheap, how many $100 permits did you say they had? I would buy ten permits for my operator if he would just drill them. That's the other thing about permits, many of them do not get drilled.
Rikard W. Schwede,III said:
Apparently Dynamic Resources is in North Dakota to drill. My sister did extensive background research on them and records show they recently filed permits to drill in the Eastern part of Mountrail County. They have also informed my sister, the family attorney, to advise us of the "force pooling" laws in case we were to turn down their offer. Looks like they aren't kidding about getting rigs out on this part of the county.
Current offer from Dynamic Resources:
$50.00/ Bonus
1/6th / Royalty
5+3/ Lease Term
$75/ Extension-Bonus
Mr.Kennedy,
Thanks for the information! I will inform the others...
r w kennedy said:
Well great! I suggest you not take their word and read the forced pooling laws yourself NDCC 38-08-08.
Not to mention the fact that if you had substantial acreage no operator wants to carry a large, or a large percentage of non-consenting interests.
Also is the weighted average of those who leased in the spacing is 16% or greater, you would get 16% royalty if force pooled and have a chance at receiving 100% less the cost of production when the well and penalty is paid off. If the well never pays out and recovers the penalty you owe nothing out of pocket.
Permits are cheap, how many $100 permits did you say they had? I would buy ten permits for my operator if he would just drill them. That's the other thing about permits, many of them do not get drilled.
Rikard W. Schwede,III said:Apparently Dynamic Resources is in North Dakota to drill. My sister did extensive background research on them and records show they recently filed permits to drill in the Eastern part of Mountrail County. They have also informed my sister, the family attorney, to advise us of the "force pooling" laws in case we were to turn down their offer. Looks like they aren't kidding about getting rigs out on this part of the county.
Current offer from Dynamic Resources:
$50.00/ Bonus
1/6th / Royalty
5+3/ Lease Term
$75/ Extension-Bonus
I was first approached by Joshua Barrett Furrh, landman representing Dynamic Resources, back in May 2013. I have mineral rights in both Mountrail and Dunn County. The lease paperwork did not define the net acres. It just said "to be determined". the Dynamic resources website was "under construction". Now when I try to find it, it does not seem to exist. when I spoke with Joshua Furrh, I advised him that I was going to have our family's lawyer who lives in Wyoming, and specializes in mineral related stuff check him out. That was the last I heard from him. I never signed the leases. I did not believe that the outfit was legit.
Today I received in the mail another 2 pages from Dynamic Resources, one was a letter address to "Dear Lessor"--well, I never signed any leases. The letter did not bear a signature. The second page was an" Order for Payment for Oil and gas Lease" form--this was a copy of the one I was sent back in may that I never signed. this smells like a scam.
Pam
Pam:
From what you have said, this would be one to stay clear of in regards to any negotiations. I will have to tend to agree with you in that something sounds like trouble ahead for anyone who deals with this company.
I was first approached by Joshua Barrett Furrh, landman representing Dynamic Resources, back in May 2013. I have mineral rights in both Mountrail and Dunn County. The lease paperwork did not define the net acres. It just said "to be determined". the Dynamic resources website was "under construction". Now when I try to find it, it does not seem to exist. when I spoke with Joshua Furrh, I advised him that I was going to have our family's lawyer who lives in Wyoming, and specializes in mineral related stuff check him out. That was the last I heard from him. I never signed the leases. I did not believe that the outfit was legit.
Today I received in the mail another 2 pages from Dynamic Resources, one was a letter address to "Dear Lessor"--well, I never signed any leases. The letter did not bear a signature. The second page was an" Order for Payment for Oil and gas Lease" form--this was a copy of the one I was sent back in may that I never signed. this smells like a scam.
Pam
I also received a similar letter dated August 19, 2013. I never signed their original lease sent in May, 2013 yet the letter is addressed to Dear Lessor and is unsigned. The letter states the lease has a curative issue, a typing error was discovered in the Order for Payment. Dynamic Resources has enclosed a new Order of Payment with a footnote correcting their error: The footnote states:
"Lessor/Grantor shall have (a) the right, but not the obligation, to re-issue order for payment; or (b) the right to cancel this transaction and not be obligated to conclude the purchase of the Oil, Gas and other Mineral Lease nor have any obligation of any kind to Lessor/Grantor" is hereby amended to read "Lessee/Grantee shall have (a) the right, but not the obligation, to re-issue order for payment; or (b) the right to cancel this transaction and not be obligated to conclude the purchase of the Oil, Gas and other Mineral Lease nor have any obligation of any kind to Lessor/Grantor."
The estimated net acres are still showing TO BE DETERMINED.
Any further news or comments on this company?
Jill Nicholson
charles s mallory said:
Pam:
From what you have said, this would be one to stay clear of in regards to any negotiations. I will have to tend to agree with you in that something sounds like trouble ahead for anyone who deals with this company.
I was first approached by Joshua Barrett Furrh, landman representing Dynamic Resources, back in May 2013. I have mineral rights in both Mountrail and Dunn County. The lease paperwork did not define the net acres. It just said "to be determined". the Dynamic resources website was "under construction". Now when I try to find it, it does not seem to exist. when I spoke with Joshua Furrh, I advised him that I was going to have our family's lawyer who lives in Wyoming, and specializes in mineral related stuff check him out. That was the last I heard from him. I never signed the leases. I did not believe that the outfit was legit.
Today I received in the mail another 2 pages from Dynamic Resources, one was a letter address to "Dear Lessor"--well, I never signed any leases. The letter did not bear a signature. The second page was an" Order for Payment for Oil and gas Lease" form--this was a copy of the one I was sent back in may that I never signed. this smells like a scam.
Pam