Mineral rights leases

General Mineral Rights Discussion
1

Hi All,

I am looking to lease mineral rights on my family's land south of Belfield. Township 138N Range 99W; SE1/4 section 22; section 27 all; SW 1/4 section 28. I see Whiting has been busy to the north with horizontal legs across 2 sections, so I wonder what it takes to make a place more attractive to drill (or lease) for that matter.

2

Dwight:

Looking at the GIS map, not much activity in the immediate area of your minerals. Do you know if any seismic tests has been conducted on your area? My guess is that you will be contacted by a landman if an interested operator wants to lease. You need a good well or wells to be drilled in your immediate area to spur development. Most likley as time goes, you will be contacted but you need to stay abreast of the activity in your area.

3

Mr. Mallory:

What would you consider "your immediate area" with regards to how it affects leasing activities? I understand the phrase "the closer, the better" but do you have a sense of distance that alerts the mineral owner to pay closer attention? As an example, would it be a 3 mile radius around ones property or might it be further? If you could give us a general idea, I think it would benefit the mineral greatly.

Thank you for all the help you've provided in the past.

4

Fred:

When I use the term "immediate area", I am referring to adjacent spacing units, not necessarily a 3 mile radius as it could be somewhat further. If you look at some areas of the GIS map, it is obvious that no recent wells have been drilled and in some cases, only old P&A'd wells exits.

5

Thank you Mr. Mallory. I appreciate your knowledge.

6



charles s mallory said:

Charles:

I know there have been at least 2, maybe a third seismic study done. I do not know what the results of those have shown. Does the state keep a record of those results, or are they a proprietary thing? I do know that there are salt water springs on the property, so I would consider that a positive sign, if nothing else. Thank you for your insight.

Dwight:

Looking at the GIS map, not much activity in the immediate area of your minerals. Do you know if any seismic tests has been conducted on your area? My guess is that you will be contacted by a landman if an interested operator wants to lease. You need a good well or wells to be drilled in your immediate area to spur development. Most likley as time goes, you will be contacted but you need to stay abreast of the activity in your area.