Just got a query from Continental re participating in the Ellison 1-21H1 to be spudded early Nov in 21-161N-94W. We don't want to participate but I'm about to talk to Diamond Resources about leasing. Our last lease in this area was at $1000/net acre and 20% royalty. Is that still about "the ceiling"?
Sounds right to me depending on length of this. We signed same agreement last year for five years.
Thanks for the feedback AD. I've been signing for 3 years on the 4 I've done with them since 2011. Don't think I would want to go any longer.
I talked to diamond again, told them that I thought the offer they gave me was too low for the amount of time they wanted. He told me that the numbers I was seeing during my research were Bakken numbers and they weren’t drilling there. He told me that the offer the oil company gave was their best offer which was $75/acre for 5 years. Not sure if we’re going to lease now.
3 years is optimal lease time for sure. Someone should of told my mothers that!! LOL. If they are not tapping the Bakken then I have no idea what you should be expecting.
My understanding is that Continental will be testing the Three Forks with the new Ellison well.
FWIW:
Burke County, Township 162 north, Range 92 west of the 5th. P.M., Section 19: NE 1/4 (160 net acres)
Offered, and signed, lease with Diamond Resources, 10/17/13. Three years, $400/acre ($64,000). 18.75%.
Previously had signed lease with Empire Oil Co. in 2006, Oasis Pet. drilled and went active in 2010 with Rebne 11-7H. Produced for about one year (approx. 67,000 bbl) and then went into SI status, and (apparently) Oasis let the lease expire.
John - I know this is kind of an old thread, but I signed a lease with Diamond/Continental last year in 3-162N-94W (the section next to yours). So they must be looking at doing something in the Larson area eventually. Section 4 is where the old lignite mine is, right?
John Anderson "Andy" Davis said:
Just signed leases with Continental Resources a little North of the above discussion. Both are for small net acreage.
One was in Sec 4-162N-94W for 3yrs at 20% with $800/acre bonus.
I got the impression that Continental may start a well soon in/near the 4-162N-94W parcel, but that they probably wouldn't be touching the 163N areas for about a year.
Mike Mitchem said:
I just got a lease in the mail from Diamond and was just wondering what others thought, any input is appreciated. We have min rights in 162/91 sec 19 and they are offering $75/acre with 16% for 5 years, not sure if that is a good deal or not, I was told by a family member that it is not a bad deal...
P. Lanse Larsen said:
Did you really mean that they offered $75/acre? Cornerstone has been drilling wells in that area further east of where Continental and Oasis are working. Conerstone is on a well right now in T161N R91W. Always nice to have more than one offer.
Mike Mitchem said:I just got a lease in the mail from Diamond and was just wondering what others thought, any input is appreciated. We have min rights in 162/91 sec 19 and they are offering $75/acre with 16% for 5 years, not sure if that is a good deal or not, I was told by a family member that it is not a bad deal...
Diamond offering $1250 and 20 % and 3 yr lease
Pam, do you mind saying the legal description?
Pam said:
Diamond offering $1250 and 20 % and 3 yr lease
Lease offer for Burke County, Township 161 North, Range 94 west of the 5th PM, Sections 21,22,27,28,29,33. I have 0.25 net acres of gross acres of 2040.00 with bonus per acre of $1,000.00. The "Paid-Up" oil and gas lease I received today offered me $250.00. I was offered over 1k about 2 years ago. Royalty of 20%, term of 3 years. Continental Resources.
Donna-did you lease or are you non-consent?
or put up $1,500 to participate for your .25 acre?
I am not sure what to do here or if I want to participate.
I have not done anything yet as I need to investigate what this is all about.
r w kennedy said:
or put up $1,500 to participate for your .25 acre?
I have not done anything yet as I need to investigate what this is all about.
Pam said:
Donna-did you lease or are you non-consent?
Hey,
Anyone have any experience around T161N, R91W, Section 14NE? The current lease is about to expire and I have no idea where to begin negotiations if I am approached (no interest yet)
We have 320 acres in T162N, R89W, Section 26. Our last lease expired a year ago, but have heard nothing from anyone at all this year, except for the occasional letter from someone wanting to buy our mineral rights. Since we are just E of Bowbells, we are wondering if that will be the cutoff line for offers for a while. Any insight from anyone out there?