I’ve recently leased acreage for 5 years and now that company wants to buy those same acres and additional acres that I’m still working out details on. This sounds to me like they are going to build/drill and know something I don’t about the location. Their offer seems low considering various recent developments. They’ve also mentioned price per barrel has slumped since I signed the original lease several months ago. Their offering less than half bonus on the new acreage (part of same sections -net acreage) I’m still working on.
There will be wells drilled there. There has been spacing approved for drilling unit covering your sections you have described. Where are your additional acres? My family has been leasing in your area for over 40 years. We also own minerals in the township. It is tricky geology and oil price dependent for operators to make a financial return high enough to drill in this area. How long was it before you leased your other acreage, I am guessing 8-10 years prior to having any offers to recently lease. Many times I have not leased thinking a better offer would come, but then the price of oil drops and no one comes with an offer and the offer in hand is withdrawn. Be careful or you may not get the any offer and the time value of money is real. I wouldnt take any offer of half what you received. But the people offering are not lying when they tell you oil price has dropped significantly from 6 months ago. Just food for thought, do as you my but money in hand is not always bad…
We also own mineral rights in 159/103. Signed leases earlier this year and 3 years ago on a smaller number of acres. Both with Koda and Phoenix. From the above post it seems likely that permitting/drilling may be in the works. In March of 2026 the smaller section leased 3 years ago comes up for renewal with Koda. Exciting times. Oil prices go up and down. Geopolitical and economic concerns all seem to play a part. A long range chart shows oil in its midrange from what I’m able to see. If one was an oil company now would be the time I’d be trying to secure leases or purchase rights at a discounted price ($57 PB). These somewhat lower prices currently might be a result of the peace deal on the table between Russia and Ukraine?
What section are you in for 161N-101W? There is active leasing in the area for the sections that do not have horizontal wells. Current permit for 31/30/19 by Koda.
We have a few interests in the same township. Based on interest from Phoenix and KODA, my guess is 4 mile Laterals in the top half of the township. Our acres down by Climax are not as in demand.
Ukraine has little to do with the oil prices. It’s mostly policy right now to lower gas prices, which means lower oil prices. USA is producing a lot, and the WH has asked the Saudis/OPEC to increase production as well. (If you have Bakken Mineral Acres, hope for $5 gas.)
KODA, Murex Petroleum and Phoenix Energy are leasing in 33-161N-101W (Divide Co). They are also leasing in section 28. Since there are already horizontal wells to the north and east of you at two section, they wll prbably drill 28/33 together (and possibly 29/32).
KODA has horizontal permits for 31/30/19 to the west of you. They also have permits for 13/12/1 directly south of you in 160N-100W.