I was just notified that I have inherited a small amount of mineral rites. I am navigating thru this site to try and get a little educated.
I have had the well pulled up and it is the Vera1-1h in Williams County, ND
Why did they only now just contact me with a lease? Should they have notified me earlier? My uncle (who owns next to us) was notified ten years ago and has been leasing all this time. Just wondering...
Mary they may just not have found you, sometimes they don't make much of an effort. They haven't begun drilling the well yet so they are being timely in trying to lease you now.
Hi
Thank you, this is all very foreign to me. How can I tell when the well is drilled?
Mary, you can generally tell when a well is drilled from the confidential list on the NDIC O&G site. The wells that have not been drilled, just permits, will not have a date on which they will no longer be confidential. I have the $50 per year subscription to the NDIC and I looked up the Vera 1-1H and they didn't give a spud (commence drilling) date.
thank you. diamond resources has offered me 1500 per acre bonus and 20% royalty. What do you think of that?
Mary, the area is commercially feasable but I didn't see any monster wells. It would probably be easier to get them to move on the bonus than the royalty. I think $2000 is realistic per acre. The lessee needs to lease acres to make money. The landmans job is to lease acres. I have had landmen tell me the most outrageous lies trying to get me to lease. The landman may tell you anything he thinks will stampede you into leasing. Take notes and check out whatever he says. You might also list your acres on the home page here and call Northern oil and gas or empire oil to ask them if they would like to make an offer, then you can tell Diamonds landman that you are exploring other options, that you have your minerals listed and are in contact with a couple of companies, all true. If someone else were to lease your acres and participate, the client of Diamond's landman couldn't make money from your acres, and that is the whole point of this exercise. Diamond's client wants to be the one to make the money off your acres.
Hi Mary-
If you are interested in watching a high-level overview of mineral rights leasing, check out a video tutorial here:
The only upside to the landman part of the equation is they seem to drive up prices. They also seem to lease when no one else will, then try to flip the land to a driller. They never offer what you could get yourself, if you make a few phone calls companies working in the area. Everyone says they dont want them if they haven't call to lease the rights but our family has found that not to be true. Sometimes they think the land is under lease and its recently expired. You still have to make a deal either way and if there is offset production just coming off the tight well list then your land could be a hidden gem. Provided the well was a better one than anticipated and the operator is still raising money lease more land, or drilling into a sale. Lots of twists and turn is the point.
Hello,
I am also a newbie and wondering how I know if any activity is planned for my particular parcel of land?
Can you help?
Also, thanks for the video link, it was very informative!
Thank you!
Brian Burns
r w kennedy said:
Mary, you can generally tell when a well is drilled from the confidential list on the NDIC O&G site. The wells that have not been drilled, just permits, will not have a date on which they will no longer be confidential. I have the $50 per year subscription to the NDIC and I looked up the Vera 1-1H and they didn't give a spud (commence drilling) date.