I just received an offer to lease some mineral acres in Dawson County Mt. The offer consisted of a $100 bonus per acre with a 15% royalty. This seems awfully low but I am not familiar with current offerings in this area. Can anyone provide some information for me? Thank you in advance for your advice.
we have some minerals in Dushesne County, UT and we were just offered $200 per acre for approx. 640 acres of minerals we have and 1/6 of the royalties (about 16%). It seems low to me but like you I'm trying to figure out a fair market value for leasing. I'm sure these energy companies are looking for "low hanging fruit".
The state leased their school trust lands for about $600 per acre last summer. I am not sure what the royalty rate was. Where is you land?
Oh, the school trust land was in Dawson County and I think it was in the north half of the county near the Yellowstone River.
Section 2, Township 15 N. Range 58 E
Joe Jackson said:
Oh, the school trust land was in Dawson County and I think it was in the north half of the county near the Yellowstone River.
I would not take the offer...............you can do better.
what formation?
not sure...will ask next time we talk
marlene ferrel said:
what formation?
Ed,
This is interesting you have an offer. I believe your area is fairly far removed from all other 'recent' activity. As far as I know, leasing action in Dawson Co. has primarily been either right up against the Richland Co. line, or well to the west - northwest of Glendive. Your minerals are in the opposite direction of both.
As a rule I'd never accept the first offer anywhere. If you want to lease now, 3/16th or 1/6th royalty should be attainable, and possibly/ probably a little more on the bonus amount. I'd be surprised if the $600/acre mentioned above on State minerals was near you. Though check the State's website to find what Lease bonus they have received near you. You should check several of the past sales.
Montana's primary oil & gas site is www.BOGC.DNRC.MT.Gov you may need to find link from that site to find the DNRC's mineral lease info. Finding a recent State lease near you would provide a nice starting point as to where bonus rates should be.
P.S. I'm now curious. Do you mind sharing which company is trying to lease it? Thanks and Good Luck.
We ended up at 200 per acre with 17% for 3 years with a two year option with all the usual pugh and shut in verbiage. I also have acreage in Wibaux Cty that they were initially interested in but decided not to make an offer on. I agree that 600 seems high for this area. I think I pushed it about as far as I could. I don't think they would go any higher than that. Montana Oil Properties was the leasing agent.
Eastern MT said:
Ed,
This is interesting you have an offer. I believe your area is fairly far removed from all other 'recent' activity. As far as I know, leasing action in Dawson Co. has primarily been either right up against the Richland Co. line, or well to the west - northwest of Glendive. Your minerals are in the opposite direction of both.
As a rule I'd never accept the first offer anywhere. If you want to lease now, 3/16th or 1/6th royalty should be attainable, and possibly/ probably a little more on the bonus amount. I'd be surprised if the $600/acre mentioned above on State minerals was near you. Though check the State's website to find what Lease bonus they have received near you. You should check several of the past sales.
Montana's primary oil & gas site is www.BOGC.DNRC.MT.Gov you may need to find link from that site to find the DNRC's mineral lease info. Finding a recent State lease near you would provide a nice starting point as to where bonus rates should be.
P.S. I'm now curious. Do you mind sharing which company is trying to lease it? Thanks and Good Luck.
Ed, sounds like you struck a fair deal. Thanks for sharing the name of the leasing company. .
Now I'm curious as to where they passed on your minerals. Would you mind posting which Township and Range the Wibaux minerals were in. Was it in the adjacent TWP, T15-R59, or were they elsewhere ?