We have been approached by five companies just recently. So it will be interesting on how the offers work out.
We were contacted in August regarding Township 141 North, Range 105 West Section 19 and Section 30. We were offered $200 acre for a 4 year lease and 1/16 royalty. We did counter, they declined and that was the end of the communication. Our lease with Petro Hunt expired in September so we’ll see if any other offers pop up.
What company approached you? You want to be the last one in your area leased to get the highest bonus/royalty.
The usual suspects approached me. Not so sure about the utility of being the last; there are other approaches.
Has anyone else been approached recently? Does anyone have a feel for the monetary terms? It looks like these are vertical wells, rather than horizontal wells, for now.
Whiting bought acreage from a company within the past couple months, and I thought it was Petro Hunt. Does anyone know if Petro Hunt is still operating in GV? Also, does that change everyone currently leased with Petro in GV acreage, now to Whiting?
Okay, I’d rather have this discussion off of the public forum. My email is firstname.lastname@example.org and I live in SoCal (originally from Bismarck). Feel free to email directly.
Yes, I know what you mean.
We probably could have held out for more bonus but I highly doubt the royalty would have climbed much above 19%. Plus, we just don’t have the time to keep going back and forth, and then dealing with the lawyers, etc…it is very time consuming.
Our lease was pretty straightforward actually. They don’t really budge on most of the language…but I feel it was fair
I looked up the Whiting purchase from Petro Hunt, but it doesn’t include GV county.
DENVER–(BUSINESS WIRE)–Aug. 27, 2013-- Whiting Petroleum Corporation (NYSE:WLL) announced today that it has signed a purchase and sale agreement with a private party to acquire certain producing oil and gas wells and development acreage in the Williston Basin in Williams and McKenzie counties of North Dakota and Roosevelt and Richland counties of Montana. The purchase price is $260 million, subject to customary adjustments, and the acquisition has an effective date of August 1, 2013.
We hear that the active areas are getting $1500.00 acre / 20% royalty. It’s all about location .
Yeah, it is always about location. 4 miles from my house is Athens, the roughest ghetto in LA (right under the LAX approach).
I am not seeing amounts that high near my section in the www.land.nd.gov/minerals/mineralsapps/leasesearch.aspx website
However, that information may be a bit stale as it looks like most of those leases are from 2012 and from February, 2013. They show royalties of 1/6th or3/16th and bonuses of $175 to $450.
I just leased in 140N -105W for $225 bonus and 19% royalty, 5 year lease. I did get another offer for $325 bonus at 18% royalty…so that gives you an idea in that range.
Thanks. That is the rough range of what I am getting offered (not that I am going to accept).
I am starting to get a better feel for what is realistic (the trouble with these blogs is that the information is of such uneven quality). It will be interesting to see what the facts are when that Davidson 12-31 well (in 141-104-31) comes off of the “confidential” status.
I too like bonus money up front, but the royalty is what really matters.
Does anyone have any feel for what sort of lessor-friendly lease language these oil companies will accept these days? There is certainly a lot of crap in these leases.
Well, my negotiations with Empire have ended, although we were not far apart. I am starting to understand a few things about these negotiations: 1. The land people really prefer to deal with clueless 88 year old widows, or baby boomers down to the last $10 in their checking accounts due to the bad economy in much of the country; 2. The land people have about an much authority as insurance claims adjusters for a 4th rate auto insurer handling minor fender benders. As such, it is really a waste of time talking to them, even if you are willing to be semi-reasonable. I don’t even know why I bother. I should know better.
Has anyone heard anything about the recent seismic activity in Golden Valley?
I have 27 NMA un-leased and was contacted last week. Who else is leasing in GV county other than Empire for Whiting?
That is approximately the same as the offer I got, but did not take. I pointed out that the state is getting more for its leases. These guys are running around low balling. Even if you are semi-reasonable, they baulk and move onto someone else. Still, don’t believe some of the silly high numbers often quoted on this site. There is lots of low quality information on these blogs.
For information on ND oil drilling :The Rocky Mountain Oil Journal
it has information that the ND oil and gas has as confidential.
Check public libraries.
Have not heard anything new about the seimic, but recent activity in GV in lease terms. GV has recently leased in the 20-21 % royalty if you hold out long enough. Some GV larger parcels have seen bonus acre in the thousands others at the $ 500-$850 range. The closer to the drilling date you are the higher value of the lease .You dont need to be leased by Empire their are plenty of other companies that have taken an interest in the area that will pay higher than Empire.
K&G Ranch hit a dry hole but dont let the land man use that tactic to scare you several new wells in that area are great !! Keep in mind that the landman companies lease/sell your lease back to Whitening for about $4000.00 per acre. We did not lease with Empire and did great.
I recently received an offer of $250 per acre bonus, 17.5% royalty on 45 acres in GV county (13-144N-104W), don’t know if anyone;s getting better offers.
When a land company speculates on land, goes out and leases acres, the cost of bonus is the negligible cost. The price rises steeply when an operator wants to acquire the leases to drill, they must pay the land company for taking the risk, pay well for the land companies title work which they had to perform and so the $4,000 per acre for an operator to obtain a lease from a land company, where you may have received $250 per acre in bonus amount would not be unusual. If the operator had leased the acres himself he could have $3,000 per acre invested in it after title work is done. The difference is paying for the risk that the land company took in leasing the acres.