I have been approached by 3 companies all offering $25-$60 per acre, 1/6 to 16% royalties all wanting 5 year leases. Does anyone have information on what the average is for Bottineau county? One landman was a tad bit threatening saying if I don’t lease they will just"lease around and drain your oil horizontally"!! I am not interested in gouging or holding out for the top dollar,just fair market value with a company I can build a solid relationship with. Is this naive thinking or to old school business?
Let me just bluntly say, that landman that threatened you is a TOOL! If nothing else, you should give his name, as that is not someone anyone should be dealing with. You are not naive. I think most of the landman are actually pretty decent eggs, although some come across better than others. Of course keep in mind that the landman quite likely does not work for the company that will be drilling. So, it’s not like it’s going to be a real long relationship. Sorry, I have no idea what rates are going for in that area. Did you do a search in that corner box under your county name?
Can I ask where you are located?
Bottineau, ND. Land is scattered through out the county mostly south of town starting anyplace from 8/10 miles.
Gayle said:
Can I ask where you are located?
Andrew, Yes, some land men can be crass. $60 for a 5 yr. lease could be acceptable, depending on whether there are any projects near you. You have got to remember that most of your money will be made by producing a well, not by leasing land. The lease money is a nice bonus. Visit the ND DMR site for a lot of good info. Do you know who they are working for? I’m just in the Renville county line near Mohall. The companies trying to get our land were willing to deal a little, make a counter offer of $100 for 5 and see if they’'ll take it. The ND DMR has a local rep. Try to locate him directly. -Joel
Just received an offer from a landman for $105 per acre and 3/16 royalty for 3 year lease with a 2 year extension option. Is this a fair offer for Bottineau County. We own about 1500 surface acres and 375 mineral acres. Landman will not disclose the company he is working for but he has assured us it is a oil company not an investors group.
I would have an issue with him not telling you who the company is. We had one broker that made us sign a non-disclosure agreement before they would tell us who the operator was. If privacy is important, I don’t know why they couldn’t do the same thing. I’d be inclined to think he lying–probably a flipper.
Andrew C Edwards said:
Just received an offer from a landman for $105 per acre and 3/16 royalty for 3 year lease with a 2 year extension option. Is this a fair offer for Bottineau County. We own about 1500 surface acres and 375 mineral acres. Landman will not disclose the company he is working for but he has assured us it is a oil company not an investors group.
Lisa do you know how I can check the landman’s creditials? His name is PS Dudley and he sounded as though he was in Colorado but the oil company was out of Texas. I have only talked to him on the phone and email. To the best of my knowledge he has not been up here.
I’m afraid I don’t know if there’s a way to check his credentials. Have you googled the company he works for? Personally, I’d tell the guy you’re perhaps interested in his offer, but you won’t be signing anything until you find out who he is working for. Maybe offer to sign a non-disclosure agreement. Perhaps start another discussion asking for advice on how to handle his non-disclosure. I might just be making too much of it.
Andrew C Edwards said:
Lisa do you know how I can check the landman’s creditials? His name is PS Dudley and he sounded as though he was in Colorado but the oil company was out of Texas. I have only talked to him on the phone and email. To the best of my knowledge he has not been up here.
It’s actually TS Dudley. I am also in Bottineau County and have received offers from TS Dudley and Contex.
Thank you yes TS Dudley!! Welcome to Mineral Rights Forum!! Are you comfortable disclosing your offers?
Andrew C Edwards, Would you be willing to share contact info ? I would like to lease for 3 years in 163- 075 I tried sending a private messege but your computer rejected it. Thanks.
Rohn, What part of Bottineau couty are you from ? And have you had any offers for a 3 year lease ? Thanks
Rohn Newman said:
It’s actually TS Dudley. I am also in Bottineau County and have received offers from TS Dudley and Contex.
Our larger parcels of land are in 161 & 163. Yes as I mentioned before we have an offer on the table right now for a 3 year lease. What part of the county are you in?
I am North of Bottineau in the hills , 3 Wildcat wells were drilled less than a mile away over the years, 2 of them had casing and had pumping units but never were producers back then.
Andrew C Edwards said:
Our larger parcels of land are in 161 & 163. Yes as I mentioned before we have an offer on the table right now for a 3 year lease. What part of the county are you in?
Andrew,
I’m in township 161 also.
Landman is sticking hard to 1/6 share. Attorney says the offers will get better. They started with a 5 year lease, but have now come down to a three year with two year extention.
I’m still thinking. …
Botno said:
I am North of Bottineau in the hills , 3 Wildcat wells were drilled less than a mile away over the years, 2 of them had casing and had pumping units but never were producers back then.
Andrew C Edwards said:Our larger parcels of land are in 161 & 163. Yes as I mentioned before we have an offer on the table right now for a 3 year lease. What part of the county are you in?
What company is your landman with? Do you know what oil company he is leasing for? Check out other more knowledgable individuals on this but we have been told to avoid the 2 year extension. We are now looking at a straight 3 year non standard lease. Perhaps your attorney can give you the best advice on that.
Why are extentions bad?
They all seem to want some level of extention.
Botno said:
Rohn, What part of Bottineau couty are you from ? And have you had any offers for a 3 year lease ? Thanks
Rohn Newman said:It's actually TS Dudley. I am also in Bottineau County and have received offers from TS Dudley and Contex.