Good Rule of Thumb For Golden Valley ND

General Mineral Rights Discussion
1

What would be a good rule of thumb for a well to impact your lease negotiations?

3 sections (miles) from a spacing unit? Or more?

Example: I have Maus 23 right above, does that mean that a well as far away as Brookhart would impact my leasing terms?

I am one lowball offer, which is the first, and I am waiting on Whiting to get back to me.

I told Whiting that I had other interested parties and to come in with their best rates, terms we will discuss later, since there is no other way but for this thing to end up in a horse trade. I do not want to sound stupid or uneducated.

2

Joel:

What kind of production figures does the Maus 23 have and how far away is the well located from your mineral acreage? Same with the Brookhart well. Do you know any of your neighbors who have recently negotiated new leases? It has always been a rule of thumb that the more “great wells” within your mineral acreage vicinity, the more negotiating power you will have. In the vicinity, I refer to wells in your field or adjacent fields. If you are not happy with the current offers, you may want to hold out and see what 2012 has to offer for your area.

3

Joel:

If you don’t get any decent offers, I would be very tempted to wait until the Nistler comes off confidential in March as if the production figures are good, your negotiation power just got larger. Sounds like the area is definitely being developed but the more wells the better off you are in your matters.

4

Joel:

The production is much greater on a horizontal vs vertical well. This horizontal drilling has been the backbone in the Bakken drilling program and yes, the cost of completion on a horizontal well can run in the neighborhood of 8 -10 million depending on the number of frack stages.

Joel said:

Thanks Charles:

That is my current thinking is to wait for Nistler-H. Is a horizontal well that much more of a producer than a vertical? (Maus). Would it be correct that since Maus cost 3.8 mil, say Nistler twice that, at the very least they would not have doled out twice as much if the H well would not produce at least twice as much? So that would put it at 10K barrels per mo, or 333 bpd at a minimum. If that is the case then I agree Nistler will most definitely affect me. And I know I am trying to tell my accountant’s head that there are no consistencies, that is why I appreciate this website, I get at least some answers and am politely told when there are none. So I would like to express my appreciation for your humanity. US MO’s are truly between a rock and hard place. So outside of this website, we do we turn, as nonresidents of ND, to our politicians? I can hear the roar of the general public, especially these days, when MO’s would complain, after all aren’t we rich?

I guess that Maus has paid for itself before it has come off confidential (and I using sales not production) is irrelevant.

You guys know what business I am in, Dec 31st is fast approaching, so please excuse my previous rant, I bit the bullet and sold my losers to cash flow me through next tax season. I am moving into the acceptance phase: I did my due diligence, I read the footnotes to the financials, I crunched the numbers, and the stock market F*d me. I’m alone right guys (lol).

Again thank you for being humane.

charles s mallory said:

Joel:

If you don’t get any decent offers, I would be very tempted to wait until the Nistler comes off confidential in March as if the production figures are good, your negotiation power just got larger. Sounds like the area is definitely being developed but the more wells the better off you are in your matters.

Joel said:

Charles:

Maus is selling about 5,000 barrels per month. Maus is maybe 3/4 mile north, if the spacing for Nistler goes east I am 2 miles east of that, I am 5 miles from Peplinski and 7 miles from Brookhart. Now that I spelt that out I think the wells that will impact my lease are certainly Maus which is pumping and Nistler which comes off confidential March 10th.

5

Gerald-Rapid City

My sister and I have about 850 acres of mineral rights in Golden Valley, North Dakota. The oil drilling of one is about 1 mile from our land, the other about 1/2 mile. Most companies I have contacted say they want to wait until they see what these wells produce before they give us any offers. Are the names of the wells called Maus and Nestler? All I know is they are being drilled on State Land. Contact me Joel and we can share.

charles s mallory said:

Joel:

The production is much greater on a horizontal vs vertical well. This horizontal drilling has been the backbone in the Bakken drilling program and yes, the cost of completion on a horizontal well can run in the neighborhood of 8-10 million depending on the number of frack stages.

Joel said:

Thanks Charles:

That is my current thinking is to wait for Nistler-H. Is a horizontal well that much more of a producer than a vertical? (Maus). Would it be correct that since Maus cost 3.8 mil, say Nistler twice that, at the very least they would not have doled out twice as much if the H well would not produce at least twice as much? So that would put it at 10K barrels per mo, or 333 bpd at a minimum. If that is the case then I agree Nistler will most definitely affect me. And I know I am trying to tell my accountant’s head that there are no consistencies, that is why I appreciate this website, I get at least some answers and am politely told when there are none. So I would like to express my appreciation for your humanity. US MO’s are truly between a rock and a hard place. So outside of this website, where do we turn, as nonresidents of ND, to our politicians? I can hear the roar of the general public, especially these days, when MO’s would complain, after all aren’t we rich?

I guess that Maus has paid for itself before it has come off confidential (and I using sales not production) is irrelevant.

You guys know what business I am in, Dec 31st is fast approaching, so please excuse my previous rant, I bit the bullet and sold my losers to cash flow me through next tax season. I am moving into the acceptance phase: I did my due diligence, I read the footnotes to the financials, I crunched the numbers, and the stock market F*d me. I’m alone right guys (lol).

Again thank you for being humane.

charles s mallory said:

Joel:

If you don’t get any decent offers, I would be very tempted to wait until the Nistler comes off confidential in March as if the production figures are good, your negotiation power just got larger. Sounds like the area is definitely being developed but the more wells the better off you are in your matters.

Joel said:

Charles:

Maus is selling about 5,000 barrels per month. Maus is maybe 3/4 mile north, if the spacing for Nistler goes east I am 2 miles east of that, I am 5 miles from Peplinski and 7 miles from Brookhart. Now that I spelt that out I think the wells that will impact my lease are certainly Maus which is pumping and Nistler which comes off confidential March 10th.

6

Gerald-Rapid City

My sister and I have about 850 acres of mineral rights in Golden Valley, North Dakota (Mercer County). The oil drilling of one is about 1 mile from our land, the other about 1/2 mile. Most companies I have contacted say they want to wait until they see what these wells produce before they give us any offers. Are the names of the wells called Maus and Nestler? All I know is they are being drilled on State Land. Contact me Joel and we can share.

charles s mallory said:

Joel:

The production is much greater on a horizontal vs vertical well. This horizontal drilling has been the backbone in the Bakken drilling program and yes, the cost of completion on a horizontal well can run in the neighborhood of 8-10 million depending on the number of frack stages.

Joel said:

Thanks Charles:

That is my current thinking is to wait for Nistler-H. Is a horizontal well that much more of a producer than a vertical? (Maus). Would it be correct that since Maus cost 3.8 mil, say Nistler twice that, at the very least they would not have doled out twice as much if the H well would not produce at least twice as much? So that would put it at 10K barrels per mo, or 333 bpd at a minimum. If that is the case then I agree Nistler will most definitely affect me. And I know I am trying to tell my accountant’s head that there are no consistencies, that is why I appreciate this website, I get at least some answers and am politely told when there are none. So I would like to express my appreciation for your humanity. US MO’s are truly between a rock and a hard place. So outside of this website, where do we turn, as nonresidents of ND, to our politicians? I can hear the roar of the general public, especially these days, when MO’s would complain, after all aren’t we rich?

I guess that Maus has paid for itself before it has come off confidential (and I using sales not production) is irrelevant.

You guys know what business I am in, Dec 31st is fast approaching, so please excuse my previous rant, I bit the bullet and sold my losers to cash flow me through next tax season. I am moving into the acceptance phase: I did my due diligence, I read the footnotes to the financials, I crunched the numbers, and the stock market F*d me. I’m alone right guys (lol).

Again thank you for being humane.

charles s mallory said:

Joel:

If you don’t get any decent offers, I would be very tempted to wait until the Nistler comes off confidential in March as if the production figures are good, your negotiation power just got larger. Sounds like the area is definitely being developed but the more wells the better off you are in your matters.

Joel said:

Charles:

Maus is selling about 5,000 barrels per month. Maus is maybe 3/4 mile north, if the spacing for Nistler goes east I am 2 miles east of that, I am 5 miles from Peplinski and 7 miles from Brookhart. Now that I spelt that out I think the wells that will impact my lease are certainly Maus which is pumping and Nistler which comes off confidential March 10th.

7

Joel said:

Gerald: I respectfully believe you may be mistaken, Maus was a farmer and either him or one of his sons bought the surface rights to my grandparents’ old place. I am not as familiar with Nistler but it is my believe that also was held privately. Leased state lands would be at land management on the web.

8

Gerald Ehli said: Who were your Grandparents? I grew up in Mercer County, and my parents lived on a ranch south of Golden Valley for 60 years. (10 miles)

Joel said:

Gerald: I respectfully believe you may be mistaken, Maus was a farmer and either him or one of his sons bought the surface rights to my grandparents’ old place. I am not as familiar with Nistler but it is my believe that also was held privately. Leased state lands would be at land management on the web.