Location: Township 147 North , range 103 west, 5th PM
Last lease was with XTO Energy for 3 years, $200.00 per net mineral acre and a 1/16 royalty. Own 18 net mineral acres.
Currently no lease but a David Gronos from Momentum Energy has contacted me and is offering $600.00 per acre and unknown royalty. Has anyone ever heard of this company? Is that fair? Anyone know if they are drilling on or near this location. Any help or information would be greatly appreciated.
Thank You!
Kurt:
Momentum Energy is either an investment company looking to lease minerals or a broker operation whom is leasing for a oil company. I would pose a question to Mr. Gronos in regards to their status. McKenzie County is one of the "hot" spots in the Bakken but some areas have not proven to be as good as others. I don't have mineral holdings in McKenzie County and cannot advise a decent bonus but the $600/acre seems low based on the location of your minerals. I would not consider any royalty less than 20% with a 3 year maximum lease. I'm sure someone on this forum who is familiar with the area can advise you further on this matter. Keep in mind, other formations exist in the area which one day could prove very profitable. Your mineral acreage is small but currently, your in a good position by having no lease which leaves you an open field for leasing. Take your time as additional offers will occur and learn more about the company leasing and their intensions for your holdings.