We received a lease offer for our interests in subject sections. Our former lease expired in Feb, 2016 and no interest to lease the minerals until just now. I know times are tough for the oil companies but I believe their offer is to low in amount of signing bonus, $300.00, time limit, 4 yrs., and share 17.5%. Before I reply to them, I would like to know if anyone else is or has recently dealt with anyone for a lease and what are the terms. If any other mineral owners in these sections have been approached, I would like to contact them in joining forces in negotiating a new lease.
Robert I’ve been approached some years ago… is that 300 an acre ? I forget the price I received per acre but I’m getting 18% share… I believe that you are getting low-balled the producer I’m dealing with is continental resources and I believe I could have done better myself… good luck
The location of the oil well on the property is w158 r98 really close to the coordinates you gave and the reason for my response
Thanks Todd, any info is appreciated.
I own mineral rights in the exact sections. I can think of several reasons the offer is quite a bit on the low side. The well 1/2 mile to the east (30275) has produced over 61,000 barrels since the middle of last year. There are over a dozen producing wells within 3 miles of sections 19, 20 and 29. PM me and I'd be happy to talk more.
Robert. We just recently had a landman contact us as well for our tracts just north of Williston. We signed a lease 3 years ago for $1,500 per acre at 20% royalty for 3 years and now it's dopped to the same rate as yours and we are trying to find out why. The family is in no rush to agree to a lease and we plan on waiting to see what else comes along. Curious to hear what has become of your situation.
We are still thinking about the original offer. Don't really like it. Some of our family group have hired a lawyer and also contacted landmen for two other oil Companies. No reply has been received from them yet. Continental has refused to consider any of our proposals so we are at a standstill right now. We realize oil prices are low and may never get as high as they were and this will definitely affect the lease terms.
The wife and I have decided to accept the lease offered by Continental. We tried getting better terms but they would not negotiate. Two other Companies who have been active in the subject area were contacted and they are not interested in any leases at this time. We figure waiting could bring us a lot more money or it could mean no lease. We chose to gamble and take some now rather than none at all. We do not like the terms but then with the oil prices so low, who knows when they will go up enough to make a big difference. Sure wish our lease had expired two years ago. Good luck to you in whatever you decide.