I own acreage as described below and was recently offered $2800 an acre to purchase. I have no metric to judge whether or not this is a good offer. Does anyone know? Thanks
XTO has leased both pieces and only one is producing, that is the one that I have the interest number on and I receive .005189270 or 43.13758 acres, the other does not produce but I own 4.1412 acres, the legal description is as follows:
The Northeast Quarter (NE1/4) and the Southeast Quarter (SE1/4) of Section Thirty-Four (34) in Township One Hundred Fifty-Seven (157) North, Range Ninety-Five (95) West of the Fifth Principal Meridian, Williams County, North Dakota. I have a .005189270 interest or an interest in 43.13758 acres .
Also:
The Northeast Quarter (NE1/4) of section Twenty (20) in Township One Hundred Fifty-Seven (157) North, Range Ninety- Four (94) West, Mountrail County, Stanley North Dakota. I own interest in 4.1412 Acres.
Mr Watkins, there is pretty good production (180k+ bbl and another 176k+ bbl compared to your 41k, similar time frames, different operator, murex) just west of you (1/2 mile) and there is a permit to drill a new well in your spacing. Your first well had alot of trouble (the wellfile is huge as a result), a small orerator (Headington) trying to work out the Bakken drilling technique as he went. They drill alot better wells these days, XTO (new operator) has the benefit of 4 1/2 more years of experience in drilling Bakken wells and improved completion techniques. I think if that next well is drilled that someone would have picked up a bargain at $2800 an acre. I hope it wasn't XTO that made the offer, as they would have a good idea of if and when they are drilling that next well. Long story short I think you'd get $2800 dollars in royalty over time and possibly that much in months if they drill the new well. To me, it would be worth more
I can tell you one thing i inherited mineral rights on approx 12 acres in richland county sidney montana I sold have of it about 5 yrs ago and would give anything to undo it i am grateful i still have the other acreage i would not sell i was given a fraction of what the land is now valued at again live and learn
Mr Watkins are you a land agent in the area?
gary:
I agree with both rw and Theresa. In the 30 plus years I've been associated in the Oil and Gas industry, the comments the Theresa made in her post is very common. In conclusion, I would not consider any sale of minerals especially in the area where your minerals are located.
Mr. Watkins, you are welcome. It's ok with me if you decide either way, to sell or keep the minerals, but it's hard to make an informed decision if you don't have the information. I'm fairly certain whomever made the offer had this information.
As i said im so new to all of this the mineral rights i sold 5 years ago i guess i didnt do the proper research and am now trying to do so i apologize if my questions are way off base again thank you for your advice.
nwatkins said:
No. I used to be a residential real estate agent in California but have recently moved to Alaska to create another arm to my lifelong friends crane company. Alaska so far has proved to be an excellent change from California the people are warm and friendly. Why would you ask?
Theresa Hennen said:
Mr Watkins are you a land agent in the area?
Mr. Watkins, I'm not in the business, other than looking after my own interests. I do sometimes wonder when I see an obvious money maker why someone (purchaser/ lessee) is trying to squeeze the last penny out of the deal. A friend of mine says of an oil and gas deal, that there is no higher expression of capitalism. I guess that is my answer.
gary watkins said:
Yes indeed I am sure they do. I am just trying to play catchup to make an informed decision as well. Are you in the business of purchasing assets like these. if so, I shall keep you in mind when my tax status is affirmed in Alaska.
r w kennedy said:
Mr. Watkins, you are welcome. It's ok with me if you decide either way, to sell or keep the minerals, but it's hard to make an informed decision if you don't have the information. I'm fairly certain whomever made the offer had this information.