We just got an offer from Bakken Oil for leasing rights to Township 154 North, Range 96 West, 5th PM, for $300 an acre for only Section 21: E 1/2 SW 1/4, for 1/8 royalty. We didn’t even know we owned this until we were contacted. We live in Washington and we don’t know the area. What we want to know is, is there anything producing in that area, and should we accept or sell? They offered $1,000 to buy the rights.
It looks like that’s right in the middle of Lake Sakakawea.
I am paying at least $2,500 per net mineral acre in the area so their offer is not very good to buy and their lease offer sucks to put it bluntly.
Tim Metz
Do you know if anything is producing there, and what is a good lease offer?
I wouldn’t settle for less than a 3/16ths. You won’t get a very good offer from Bakken Oil probably and I’d wait to see if XTO leases more since it is in their area.
There are many wells in the area. XTO just drilled a 2 section well to the Northeast in Section 3 and 10 which so far doesn’t look too good for a 2 section well but they could be bringing it online slowly which they have found works better on the multistage frac they are using. They have one next to it that has produced a few months but it’s not the best either and down to 5,500 bbls after only 3 months, down from 8,585 so not too steep of a decline rate but just producing 5,500 after only 3 months isn’t the best for a 2 section well.
Donna,
We are currently leasing in there as well. We are much better than what Bakken offered you. Also by the way Bakken Oil purchases leases for XTO, so they are one and the same. If you would like to contact me you may at 701-774-3161. Thanks Donna!
Mat,
Who are the we when you say we are leasing in the area and is this we drilling the wells or is the we just a lease broker/agent? Also, what are the terms you’re leasing for in this area? I didn’t know that Bakken Oil only leases for XTO being they are one and the same, I thought they were just an independent lease broker and tracts they lease could end up with anyone.
So you’re offering higher bonus and royalty than XTO?
It was monthly production as per NDIC production history data which is monthly production data by number of days the well was producing.