Oil & gas discussion group for those interested in McKenzie County, ND. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
Our family interest inherited from Benjamin Lovell Robertson, aka “Robertson Oil” include:
ND, McKenzie CO. T-148, R-104W,Sec 34 ALL, Sec 27 = 12 acres
Well Name Hatter, in production w/ Headington for many years.
thanks for letting me into this group.
It must be good to be a landman, some days. I saw where the landman who signed my aunt (who didn’t consult me) in 2005 carved himself a nice 5% override out when he flipped the lease to yet another middleman who flipped the lease to the operator for an unknown amount of cash and a 0.625% override. Total? 20.625% out of which my aunt gets 15%. Oh well, it’s only 350 net acres or a little more.
I am not sure how this works. Hopefully just posting a message. Family has 327 acres in McKenzie county 146/104/26 &10. Signed a lease in May with $1200/acre bonus & 20% royalty. Hopefully helps anyone else in the area. No longer with Continental.
I got a question ? how much could i sell my interest in my royaltys per acer there drilling now on land but i cant wait im looseing my home i dont know what else to do ?
Your property could be worth quite a lot. The normal thing would be to sign for a bonus, say, 1,ooo per acre then a royalty of say 20%. The problem is there is a lot of language in the lease they send you that you will not like and it will take time. There are peopel who probably would quickly just buy your land and include these things in the price. Contact the township to get some names of drilling companies adc call them. These are just thoughts but hope they help.
Mr. Gifford, I think there must be a way. I think you are saying you have signed a lease and you want to sell your royalty stream or interest? That may take some time and buyers may want to see what they are buying or the offers will be very low, meaning they will want to see production. If you are elegible for the Govt. programs or a reorganizational bankruptcy, I think they ( especially the bankruptcy ) would save your house and the minerals. A bankruptcy attorney can stop the forclosure and buy you some time, possibly lower your payments. I’ve lost a home before and know how terrible the threat of losing what seems like everything is. My best wishes go with you.
I am doing some consulting work in McKenzie County. Who are the major players and lease terms if anybody knows. All responders are greatly appreciated.
Rickie, I can look at the production of your wells if you give a legal deascription, township range section. It could be a number of things, 1 you have very few acres, 2 you have very poor wells, 3 they aren’t paying you what they should,4 possibly you signed a very poor lease that allows them to charge you for absolutely everything and the resulting checks are whatever is left that they can’t find a way to keep, check your lease to see what you are expected to pay for, trucking oil, seperating, compressing and so forth up to and including marketing charges for your gas.
I have mineral rights that are paying me in McKenzie Co. . 1/6. two sections in a township. Petro Hunt is the company that is handling my wells. 3.5 years ago (I) we accepted an offer for $300.00 per and 1/6 for 5yrs. Have received aprox. 6 checks ranging from $32.00 to $900.00.
What is going on up there now?
What is the approximate value of 10 acres of mineral rights in McKenzie Co. (T150N,R98W,S11) in the current market?
S E Thompson, you have very respectable wells surrounding you operated by Denbury Onshore LLC. All seem to be producing in the 10,000 bbl a month average or more in their first 6 months ( must have been a busy time in that area for the frack crews). They will decline but they appear to have looong, profitable lives ahead of them. You didnt state if you were wishing to sell or lease.
That’s the issue. To sell or lease. I sense that the value is in leasing with royalties. On the other hand, I need cash right now, so would be willing to sell for the market price.
S E Thompson, I would be wanting at least $2,000 per acre bonus and a minimum of 20% royalty to lease such acres were they mine (but I might have to negotiate with the bit in the dirt to get that). They might have a marketable sale value unemcumbered by a lease of $5,000 or more per acre. For a reasonably quick sale I would probably allow someone to negotiate down to $4,000 per acre. This is my opinion only, the minimum I would require to deal for those acres if they were mine and I was in dire need of immediate cash. If you need to sell it fast, I hope you have a deed in your name. It could complicate matters if you need title work. Try to get other valuations than mine. I think I have it fairly close, and I don’t think anyone else is going to go out on a limb and give their best estimate. I wish you the best of luck.
If you need to sell your net mineral acres, I would try to find out the going rate, and then ask family members (aunts, uncles, cousins, siblings) first; if they would be interested in buying them.
I know that could put you in a spot for confrontation or judgement by them, but with the Bakken activity as such, it is quite an opportunity for them to have additional acres they may already have a part of.
If you read this forum, you will see many times that people suggest to NEVER sell, and leasing would be a much better option for your future chance at having royalties; but if you need cash that is your choice.
If you are able to find a family member to buy them, and your future wealth would change, there may be a chance you could buy them back again. If you sell to a stranger, they will be gone forever.
Best of luck to you in your decision.
Mr. Price, 96,618 BBL of oil through Oct., roughly 6 months and 11 days production for the Brenna 152-96-14B-23-3H alone. There is another well legging into section 14 ( very respectable production, 87.177 for 18 months, but bears out my theory that the newer wells are completed with better tech ) along with what appears to be a couple of old verticle wells still producing, and a confidential well dot in sec 23 that will be yet another horizontal well legging into section 14 when it is drilled. I have little doubt that it will be drilled. Just my opinion, but if you are leased, don’t sell. If you are unleased, I’d consider all my options, before I signed a lease. I think you have a very nice part of the oil patch. Congratulations!
I agree with RW & Snues. It’s generally better to hold on to them. That is a good area and you should be able to get a good lease bonus and royalty.
Hey all, just received my third offer to buy my rights. First one was for $300.00, second one as for $1000.00 and the latest was for $2,000.00. mmm guess they really want the well.
My area in McKenzie is 159 96 14-23
Correction on my lease area. 14-152N-96W. McKenzie Co.