Lease Offer in Dawson County, MT

Township 19 North, Range 53 East, M.P.M. Lease offer for $50/acre, 1/8th royalty, 5 year term. Does anyone have experience in this area as of recent? There currently isn’t much information on the forum regarding this county. Any advice is much appreciated.

That sounds pretty typical for the area as of right now, from what I have read and heard. There isn’t a ton of drilling going on but there has been a fair amount of new leases being offered. The leases are low compared to other areas of the country and compared to what were being offered a few years ago (2013 during the boom up there). Good luck!

The 1/8th and the 5 years indicates that they are in a wait and see mode. Personally, I would not go for less than 3/16th and 3 years.

You won’t get 3 years and 3/16 lease in that area. Not going to happen. Especially not now. So many oil companies are laying people off and exploration has slowed drastically up that way.

Apparently we’ve been contacted again as of a week ago. Waiting to hear from the family member in charge as to what the offer was but I am expecting something in the 50 and 12.5% ballpark.

Cole, Agreed. And it sounds as though if anyone tries to counter offer, the oil companies are walking away and withdrawing the offers. “A bird in hand” comes to mind right now. We were offered a lease back in 2013 (200 an acre and 15%) that in retrospect was a really good one and we tried countering with something slightly higher (250 and 17.5% I believe). They ignored us…and that was during the boom up there.

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