Hello

Anybody have anything exciting going on with your minerals. I don’t have a well yet but hopefully this is the year.

We just signed a lease, granted only for small acreage (8.88 between 4 of us), in McKenzie County 151N 94W on the Berthold Reservation for a $2,000 /acre bonus, 20% share, and 3 year term. I thought those were great terms considering we leased other acreage in the same tract 3 years ago for $200/18%/5 years. At least one well has been permitted on the spacing, but no drilling yet. Just watching & waiting!

Good. We are 146N 104 sec 26 and 10. Family acreage. Continental has permit for sec 10 but no well yet. Still waiting. 2011 looks promising.



Ronald Hagen said:

We just signed a lease, granted only for small acreage (8.88 between 4 of us), in McKenzie County 151N 94W on the Berthold Reservation for a $2,000 /acre bonus, 20% share, and 3 year term. I thought those were great terms considering we leased other acreage in the same tract 3 years ago for $200/18%/5 years. At least one well has been permitted on the spacing, but no drilling yet. Just watching & waiting!

153N 101W signed lease Dec of 2009/$500. acre for 3 years at 1/16th. Still waiting for the excitement to start. I have no idea how to determine what might be (or might not be) going on. The suspense is hard to handle. I don’t understand the NDIC information, so I …wait. It’s exciting to see $2000. per acre and 20% !!! I am surmissing it’s just a matter of time but some of the postings I read are alarming. It appears you have to be alert for things…my trouble is knowing what things. It’s all 'Greek" to me. I’m kind of laughing but, really, it’s not very funny.

Good to hear. Hope this is the year for us all. I’m currently putting together a deal but cant talk specifics yet.

Suzanne Vohs said:

153N 101W signed lease Dec of 2009/$500. acre for 3 years at 1/16th. Still waiting for the excitement to start. I have no idea how to determine what might be (or might not be) going on. The suspense is hard to handle. I don't understand the NDIC information, so I ...........wait. It's exciting to see $2000. per acre and 20% !!! I am surmissing it's just a matter of time but some of the postings I read are alarming. It appears you have to be alert for things.....my trouble is knowing what things. It's all 'Greek" to me. I'm kind of laughing but, really, it's not very funny.

Ms. Vohs, I sure hope you meant that you signed for 1/6th or possibly 3/16th royalty. I/16 would be very small. In the event that 1/16 is accurate, I hope you get the chance to lease again at better terms. If you should get the chance to lease again, I and many others here will be glad to give you whatever information we can to help you get a better lease. I think if you lease again it will likely be the last time, until your property is drained of oil, so making the best deal you can will be even more important. Please do not hesitate to ask. RWK Ps. for anyone who does not know, if you refuse to sign a lease at all the absolute minimum you could receive is a 1/8 cost free royalty, and you would likely receive more as the weighted average of all the leases in your pool or a flat 16% cost free whichever the operator elects.

Suzanne Vohs said:

153N 101W signed lease Dec of 2009/$500. acre for 3 years at 1/16th. Still waiting for the excitement to start. I have no idea how to determine what might be (or might not be) going on. The suspense is hard to handle. I don't understand the NDIC information, so I ...........wait. It's exciting to see $2000. per acre and 20% !!! I am surmissing it's just a matter of time but some of the postings I read are alarming. It appears you have to be alert for things.....my trouble is knowing what things. It's all 'Greek" to me. I'm kind of laughing but, really, it's not very funny.

It’s not news but I have 6 wells in McKenzie co T - 149 to 151 and R - 96 & 97, all singles on 1280’s. All but 1 drilled from early 08 to early 09 They are not barn burners, but they all appear that they will pay out and have long profitable lives ahead of them. Sadly, I don’t think the necessary infil wells to produce more than a slight fraction of the oil, will begin for at least another decade. McKenzie county seems to be a good place to own minerals and the wells North of mine seem to do even better. Good luck with your wells everyone.

I am just wondering if anyone knows what the going rate for mineral right leases in the McKenzie County area is now. Our lease is coming up and we know the prices have changed from 3years ago. We have 1 yr left but they will start negotiating our lease soon… we are T152N-R103W Sec 24 . I am just wondering if anyone has any help they can give me . when we leased 2 years ago it was at $165 per acred & 1/16 royalty. Our lease is now with Encore and I am wondering if anyone has had experience or knows anything about this company. I am in Nevada and mostly all previous communications have been over the phone . Thanks For The Help

Pam: I have old old wells from the early 1980s that Encore was owner of. Last I knew they sold to Denbury Onshore, but I don't know if they sold all of their holdings. They are (were) a pretty reputable company. We never had any problems with them. I can't imagine most oil companies letting their leases expire at this point in time, especially the ones they got "cheaply" with the lower royalties, but the weather and flooding could cause this to happen. If you get the chance to re-lease these, I'd try to get 20% royalty and $2000 an acre and see what happens. Some people are getting that and there is oil under the Bakken.

Pam said:

I am just wondering if anyone knows what the going rate for mineral right leases in the McKenzie County area is now. Our lease is coming up and we know the prices have changed from 3years ago. We have 1 yr left but they will start negotiating our lease soon.. we are T152N-R103W Sec 24 . I am just wondering if anyone has any help they can give me . when we leased 2 years ago it was at $165 per acred & 1/16 royalty. Our lease is now with Encore and I am wondering if anyone has had experience or knows anything about this company. I am in Nevada and mostly all previous communications have been over the phone . Thanks For The Help

Pam, I will echo Well wisher. Don’t accept the first offer and contact other companies to get competitive bids. You were lowballed 3 years ago. Good luck this round which will probably be the final deal before those acres are drilled, make sure you make the most of them.

O.K. Sometimes I think outside the box …so just ponder this… What if we prepared our own contracts and sent them to the company(ies) we know are in our area? They can accept them or let the ‘other guy’ accept them. If we stuck together on this, we would have more control. When we know our leases will be expiring get an expert to prepare the contract that protects our interests, gives us a fair lease and royalty amount, pugh clause etc. We just need to stay in contact with fellow mineral owners to know what companies are in what areas and what shall we all agree on to ask. I now I just struggled for weeks before I signed the last lease. I asked for some items to be changed/included that I thought would protect me and my heirs down the line and was told NO. They wouldn’t change a thing. If we all ask for the same protections etc. they won’t have choices. I am not advocating asking crazy amounts of money, royalties or protections, rather asking for fairness.

r w kennedy said:

Pam, I will echo Well wisher. Don't accept the first offer and contact other companies to get competitive bids. You were lowballed 3 years ago. Good luck this round which will probably be the final deal before those acres are drilled, make sure you make the most of them.

Thank You for the help. Being so far away from ND and also just now starting to help my mom handle these affairs is very important for me to do the right thing and get the best deal possible for my family and hopefully generations to come. We have had these minerals for 30 years and this is the closest we have seen that they will actually drill on our land. Good Luck to everyone and I hope God Blesses us all

Well Wisher said:

Pam: I have old old wells from the early 1980s that Encore was owner of. Last I knew they sold to Denbury Onshore, but I don't know if they sold all of their holdings. They are (were) a pretty reputable company. We never had any problems with them. I can't imagine most oil companies letting their leases expire at this point in time, especially the ones they got "cheaply" with the lower royalties, but the weather and flooding could cause this to happen. If you get the chance to re-lease these, I'd try to get 20% royalty and $2000 an acre and see what happens. Some people are getting that and there is oil under the Bakken.

Pam said:

I am just wondering if anyone knows what the going rate for mineral right leases in the McKenzie County area is now. Our lease is coming up and we know the prices have changed from 3years ago. We have 1 yr left but they will start negotiating our lease soon.. we are T152N-R103W Sec 24 . I am just wondering if anyone has any help they can give me . when we leased 2 years ago it was at $165 per acred & 1/16 royalty. Our lease is now with Encore and I am wondering if anyone has had experience or knows anything about this company. I am in Nevada and mostly all previous communications have been over the phone . Thanks For The Help

Pam is my cousin and I have a portion of the mineral rights in the same location, but I confirmed today that my lease is up on the 30th of October of this year and I am handling the process of getting it leased again. How to you go about contacting other companies? Do I just look at what companies are drilling close to our property or is there a pecking order that someone recommends? I appreciate any help you can provide.

Your acres may be of more interest to companies drilling near you than they are to other companies.

I know in the past I have phoned companies and been told they aren't interested in that particular area.

Your best bet would be to contact the company that holds your current lease, and then some of the others that are drilling in surrounding areas. Let them know you are "taking offers" and will be considering several. That way they will hopefully give your the best amount up front. You may get offers to top lease these as well...which is a slightly different ball-game.

Other people may recommend a particular company, but I guess I don't know who is best although I have a few opinions...lol.

Good luck on a great lease and royalty interest.



r w kennedy said:
Ms. Vohs, I sure hope you meant that you signed for 1/6th or possibly 3/16th royalty. I/16 would be very small. In the event that 1/16 is accurate, I hope you get the chance to lease again at better terms. If you should get the chance to lease again, I and many others here will be glad to give you whatever information we can to help you get a better lease. I think if you lease again it will likely be the last time, until your property is drained of oil, so making the best deal you can will be even more important. Please do not hesitate to ask. RWK Ps. for anyone who does not know, if you refuse to sign a lease at all the absolute minimum you could receive is a 1/8 cost free royalty, and you would likely receive more as the weighted average of all the leases in your pool or a flat 16% cost free whichever the operator elects.

Suzanne Vohs said:
153N 101W signed lease Dec of 2009/$500. acre for 3 years at 1/16th. Still waiting for the excitement to start. I have no idea how to determine what might be (or might not be) going on. The suspense is hard to handle. I don't understand the NDIC information, so I ...........wait. It's exciting to see $2000. per acre and 20% !!! I am surmissing it's just a matter of time but some of the postings I read are alarming. It appears you have to be alert for things.....my trouble is knowing what things. It's all 'Greek" to me. I'm kind of laughing but, really, it's not very funny.

corrected - 1/6

My horizontal but still early horizontal tech wells are still pumping 50 to 75 bbl a day average as they have for the last couple years since they settled down after the first flush of production. Newer wells would be doing better after 5 years im sure. My first producing well in far NE Dunn cty IP'd at 2695 bbl in the first 24 hours. Three more wells to follow in that spacing, waiting to see how they do.

Can anyone tell me the approximate value of 10 acres of mineral rights on 150 N 95 W Section 11?

Need quick reply.

SE Thomson