Lease and royalty - what is fair?

North Dakota Mineral Rights Williams County, ND
1

We are 14 cousins in Norway who have inherited a quarter in Williston county, Township 153 North, Range 100 West. It was the homestead of our grandparents. We are now approached by Sundance Oil&Gas in Bismarck who represents Oasis Oil. Sundance wants to put a rig on our land a and offers 2.000USD an acre for access and 7.000 to build a road. Then 2.000 as a lease every year. They need 6 acres so all together this offer is 20.000USD before the 2.000 lease. As for time length, they said they then would have the right to drill as long as they wanted. I asked about royalty and the man referred to a "production hold" agreement regarding some drilling going on on the neighboring property and where we have received a small amount of money since the 1970's. I do not understand much of this and thought we should have the right to know how big a percentage they would offer?

Is this a fair offer?

Ivar

2

I don't know anything of the land end of how oil pads and roads work. But I can tell you that Sundance offered me a lease and they were all talkative until they sent me the actual lease to sign--then they wouldn't answer questions..Didn't ever hear from them again. Could you work directly with Oasis?

3

Hei,

Min mor har leased 80 acres to Empire Oil Co. og fikk 1500 USD for 3 års leie, samt 20 % av produksjonen. Det er Hess Corp. som opererer på oljefeltet

Braaten 15-33H (156-97-28 & 33).

Inntekter i år har vært på ca. 40000 nk.

Hva er status for dere?

Artig at det er nordmenn med i dette.

Mvh

Marit

4

Marit, If I am understanding what you are asking, the GO-BRAATEN 156-97-3328H-1 well has produced 48,328 barrels oil as of October. 1664 barrels in October. The natural gas that is produced is not being sold, it is being flared/burned. I hope this helps.