Lease Proposals by North Range Resources, LLC

R Ward · 2017-04-03T02:59:47Z

NRR has sent me several lease proposals over the last year or so. The last was several months ago and I "checked" the box to "Not participate and be subject to compulsory pooling and risk penalty..." The packet I received a couple days ago included a letter stating "North Range Resources, LLC is planning to drill an oil well, Eagle 1-2V, located in W2 (containing 320 gross acres, more or less) of Section 1, Township 145 North, Range 100 West, McKenzie County, North Dakota. You own a share of the minerals in the mentioned section and a plat of said well location is attached. You have multiple options in regards to this well. 1) Lease your mineral interest to North Range Resources, LLC and receive a royalty on production. 2) Participate as our partner by paying your share of the estimated drilling, re-working and completion costs. 3) Do nothing and be subject to compulsory pooling and risk penalty associated with the compulsory pooling as outlined in NDCC 38-08-08." The letter goes on and gives depth of the drilling in the Mission Canyon Formation, for an estimated cost of $1,502,950.00. An authorization for expenditure was included. My estimated ownership and share of the expense to drill this well is .09469692%. If I elect to participate, I am to send them a check for $1,423.25. A Joint Operating Agreement and COPAS will be forwarded after receipt of my check. An offer to lease my mineral interest was also enclosed. The lease is for my net mineral acres of only 2.118408 acres. $100/acre signing bonus and 15% royalty. 3 year term, with of course all the continuing goobly goop. Can anyone give me advice on how best to respond to the 3 options and thus the potential best return? Anyone know the potential of this area? This is the first time I have been notified by a company, that a well is going to be drilled. On the letter there is printed: USPS CRRR: #7016 1370 0000 0971 4307 if that means anything to anyone. Thanks for any help, and I would be happy to get back to anyone with more information if needed.

Oil and Gas Leasing Help

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