Got an offer (V-Arrow) for two parcels: They seem out of line. Are there ulterior motives?
163-98-09 SE 42.67 acres $46,934 Had a well 5-6 yrs ago but was TA, as gas processing cost more than the oil proceeds. It never was a very good well to begin with ()#19530
163-97-19 Lots 1&2 SE4NW4 27.84 acres $22,272
No one has ever shown any interest in this location and there are few if any wells close by.
We are not going to sell.
NARO (National Assn Royalty Owners) had an article in its most recent newsletter, in the ND Chapter’s section, regarding a new trend: using mineral leases to obtain gas right at the well head to then power data centers. Apparently one is already planned in Divide County. I could be misstating the topic, but perhaps that could be a possibility for your situation. I am no expert. Just suggesting you read their most recent newsletter.
Ole’s onto something real in general. Using stranded or flared gas to run data centers is a live trend, and Divide County has the kind of gassy, hard-to-move production that fits it. I couldn’t confirm a specific project there, so I’d track down the NARO newsletter he cited before leaning on it.
On your question: an unsolicited offer with real money on quiet, marginal acreage usually means the buyer sees something the public record doesn’t show yet. Your first parcel was shut in on gas economics. If gas picks up a local buyer nearby, stranded acreage like that gets more interesting, and that’s the kind of thing buyers move on early.
Before reading motives into it, pull both sections up on the ND DMR well search and GIS viewer (gis.dmr.nd.gov). Look for recent permits, a new operator, or fresh spacing or pooling cases. County deed records will show if anyone’s been buying or leasing around you lately.
Did the V-Arrow letter give a reason, or just a number? @Mike20
Its probably a buy and hold, because Divide and Burke are starting to get looked at more. They are probably trying to buy 5-10 years ahead of the companies. They are taking a risk and hoping that someday it will be drilled again.
This longterm approach to oil & gas investments is not particularly unusual. While a decade from now seems like a long time, many family offices & even some PE shops have a longterm view of their investments.
Got another offer to sell section 9 , this time for $1,175 / acre. This time from Lynx Oil Co. in MN.
Slightly higher than V-Arrow . In their favor, V-Arrow did use a better grade of paper for the offer.
Guess I rather get more money on a check than my initial letter! The paper check will be the same thickness from both parties. I’ve worked with both companies, they are both reputable and I’d deal with both of them again.