Hello, curious if anyone has thoughts on a $5400/acre offer to purchase our minerals in 161-102W sec 15? It was leased to Koda in 24 with them planning on drilling soon. We haven’t heard much since.
Thank you.
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Hello-
Hold on and be patient. Koda has a six-well pad permitted in that exact same section along with one salt water disposal well. Your life is going to change drastically in the next year or so. Based on other six-well pads in the surrounding area, these KODA wells in 2560 acre spacing have been producing over 17,000 barrels PER WELL! Permit wells in your section are Daneville Field wells Bock 1534-1BHN to 6BHN with one SWD. I wish you well.
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Thank you for your insight. I guess we better hang on and see what happens. Figured something was going on since we have gotten several purchase offers the last few months.
Happy to help out - that’s 17,000 barrels per well per month BTW.
Cheers,
I wouldn’t sell but FYI KODA is not going to actually drill 6 wells in those units to the North part of the Daneville. These DSUs are spaced bigger so they can drill the least amount of wells to hold the most amount of acreage in preparation for a sale. They drill great wells though, most of them bigger than 17k bbl/mo.
It is always nice to get royalty checks from wells. For what it is worth, $5,400 is the highest offer I have seen Divide county in awhile, almost double from the rumblings I’ve heard, so they are offering a premium price. If you have time to hold, I would. If you want out and want the tax advantage, sell!
We are getting offers as well. Recently got one from a reputable company for approx 3X last available leases. Depending on section at was 2K to 4.6K per nma.
When selling an asset like that, you need to consider the tax implications. Fed tax for us would be 37%, State Tax 9%, cap gains…
You don’t pay income tax AND cap gains on the same dollars, it’s one or the other depending on income source
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Absolutely correct–brain freeze from paying income tax on lease payments this week.
The tax advantage on the hold side is a 15% depletion credit on federal taxes on the royalties.
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Cheers—we just got an offer a similar offer in a neighboring township. Gotta be honest it’s nice to imagine that money In the bank, especially with all of the uncertainty in the Bakken and DC and World right now. Not that long ago Williston oil was $52.