We have been contacted by Paramount Field Services to lease our 16 acres mineral right for $50 per acre. Since these mineral acres sit in the Bakken oil reserve this seems quite low. I need information to be able to negotiate with the field representative. Please give info on production, rental rates, etc. Thanks
Bill
What is the legal description of your property?
Good luck,
Pat
Sec 1 township 162n 102w
I think that the Bakken formation is in parts of Montana, North Dakota, Saskatchewan and Manitoba.
Where are your minerals located? Don't you have a full legal description somewhere?
With this data, you may be able to get some "informative" responses from other Forum members.
Good luck,
Pat
Tenneco drilled a well in the SE quarter of section 1, Murex bought them out and plugged the well last July. $50 an acre could just be speculative money, or someone might really think they could make a well of it, they did find oil in the Stonewall, maybe someone thinks there is potential with a horizontal well as opposed to the vertical well that produced a modest amount of oil with just 12 feet of perforations?
Unfortunately, your acreage is not in the Bakken fairway. The better Bakken is to the northeast of your position and gradually degrades to the southwest. The wells nearest to you are all money-losers, recovering less than half their drilling costs. It seems highly unlikely that someone would be planning to drill Bakken wells here. Some Companies are getting better results with the newer frac procedures, but it would take a huge leap to make this area economic (or maybe a return to $150/bbl oil).
There was a Red River test drilled in Section 1 back in 1982, but it was plugged as a dry hole after recovering mostly water.