Hello,
I was hoping someone would be able to help me determine the going rate per acre for mineral rights located in Musselshell Co MT, specifically T11N/29E s8. This location is in the southern part of the Heath Formation. I have done extensive research on this area but have not found out what the going rate is per acre for five year leases. Thank you for any info.
For what it is worth, I had our 320 acres in Sheridan Ct. leased for $200 an acre for 3 years with a 2 year option. They did not exercise the option when the 3 years ended. No offers since then. Jack Tucker jackfran@wowway.com
FL,
Your land is located near the Petroleum County Line. There are three Tyler fields East, South and West. All three are about 5-7 miles away. Tyler fields seem to be structural and found with geophysical prospecting. I saw no seismic lines near your land so it appears untested for the Tyler. Active Tyler wells have been very profitable and still going. The closest recorded leases are 12+ miles away and State and BLM auction leases.
A few drilling permits have been granted to the west but the permits seem to be within the established field. The most promising indicator, is the permit for a horizontal well to the Heath formation covering 640 acres about 7 miles east of your location. It looks like the first horizontal strata test in the area. If successful, it could open up good opportunities for the area. It may be based on 2 new competions in the area that were tested in the Heath. One IP was over 90bopd.
If you can gather up 1000 + acres in your area, You may be able to attract a good long term lessee that will shoot some seismic lines and map the Heath formation in the greater area. The Heath wells may generate some leasing activity in the area, but it will most likely be speculative.
Thank you both so much for the information. I have 160 acres, small potatoes but hopefully it will attract a lessee. The area the minerals are in seems like a very good spot for speculation. I am curious why so few wells have been sunk in 'my' area. I only see one dry hole ( I found who sunk that hole too). All around 11N/29E, for a few miles, there seems to have been very little exploration. Is that a good thing or a bad thing? The rocks look right ( my opinion from viewing countless geologic reports of area).
I hope someone shows an interest in our land. I had a lease that paid $200 an acre so I reasoned that someone else would be interested. That lease was for 3 years with a 2 year option which was not taken. Good luck to all of you people as America need not be dependent on foreign oil. More wells, more jobs. A better economy.` Jack Tucker
I got $200 an acre on a 3 yr 2 yr option. They did not exercise option. jackfran@wowway,com