Hello,
I hoping that someone could possibly answer some questions re: my 5 acres of oil and gas lease in Mountrail. Last year, Mr. Kennedy kindly gave me some good info, but his email address was rejected when I tried to contact him a few days ago.
The following is currently leased to HESS. The least expires in August.
Township 158 N
Range 94 West of the 5th PM
Section 36:SW 1/4
I am quite hopeless when I look at the GIS map. Is there any likelyhood that HESS might drill in the near future? Should I contact HESS about renewing the lease if I don't hear from them?
Thanks so much!
Tammy Gallagher
tammymg1@gmail.com
Tammy, I don't see any rigs near your area. I did see some newer wells are off the confidential list, some mediocre producers and some good ones.
Petro Hunt is also moving towards your area. I think you have the potential for a good well Tammy.
It's too close to call whether Hess will move a rig in to drill your acres. If Hess does not drill I think you will receive another lease offer.
Sorry I can't pin it down for you. I can say that there are no rigs, no wells waiting to come off the confidential list and not more than one permit anywhere near you. If I had to guess. I would say that you will get a chance to lease again.
Tammy, RW has given you a good evaluation of the situation. I own and manage many parcels in the township so I watch it closely. I'm happy to see Petro Hunt activity along the eastern border. Hess has allowed many permits to expire without drilling in the area and hasn't had great luck with one Bakken completion across the Williams County line. At the same time, Hess is very active in other areas of Mountrail. One client sold a few acres last year for personal reasons and got a very good price far above what the opportunistic buyers were offering.
It is my personal opinion that Hess holds so much acreage in the area from the Tioga Madison unit that they can afford to wait and see what others do on the perimeter. It is just good business for Hess to focus their Bakken risk money in other areas. In fact, their press releases express that strategy. I just hope they learn how to do a better job of competing in the Bakken. It is a work in progress for Hess engineers i think.
Geologically, this area is as good as it gets for the Bakken and PetroHunt will show that to be the case so hold and be patient. If your lease expires, don't worry about it. I shouldn't stay open long and you should demand good lease terms.
You are in the best area of the bakken, my guess is sooner than later. I saw an afe from hess yesterday, I will find out and get back to you.
I would be interested in leasing them if they expire this fall. Please contact me at (701) 570-4502.
Derrick Ryskamp