We were just offered $50 an acre for a 4 year oil lease for the Red River Formation. We don’t know anything about whether this is typical or not. We are in the Western part of Slope County. Royalty fees offered are 1/6th if they get a producing well. We were told that the well, if it hits, would just be a 50 barrel a day well, not much. Any comments or advice would be appreciated. Also, can anyone recommend an attorney who specializes in this area?
Thanks to all -
Roxanne Hutton
I think you should do some searching for more money we just signed for $500 per acre southeast of Amidon. DEW
To recommend an attorney, we use Diane F. Melbye, at 229 First St W Box 1136 Dickinson, ND 58602-1136 phone 701 483-1700. Hope this helps DEW
Ms. Hutton, all I can say is WOW, there is obviously no money in it and they volunteered to drill a multimillion dollar oil well on or near your property just to help people in the area and put a few dollars in your pockets. I am impressed with such giving spirit, so much so that I might counter offer to take $25 per acre and 1/3 (33%) royalty instead of 1/6 because the well won’t produce much. Just call it my way of giving back to such a generous company, because I realize that they must be cash strapped when it comes to bonus money.
Dean, can I ask who you signed with? We are in 135 Section 7 & 18, Range 98W
Tom
dean e woodsend said:
I think you should do some searching for more money we just signed for $500 per acre southeast of Amidon. DEW
Thanks for the recommendation. We are part of Sections 22 & 23. Is this close to you? Did you solicit oil companies?
dean e woodsend said:
To recommend an attorney, we use Diane F. Melbye, at 229 First St W Box 1136 Dickinson ND 58602-1136 phone 701 483-1700. Hope this helps DEW
They are too low on their offer in my opinion. I wouldn’t think it would be worth it for 50 bucks an acre.
Both the lease acreage offer and production estimate appear low. Hard to imagine drilling the Red River hoping to hit 50 bbls/day.
I’m curious where you got the production estimate? Unless I’m missing something, we don’t know within miles of where the OP’s minerals are.
We are in negotiations now for $200/acre. Our property is in Section 32, Slope County. Part of the family wants to hold out for $500.
Kurt, a Township and Range to go with the Section 32 would pin it down. I believe there are several Section 32s in Slope County, not that I want to pry. Whatever you lease for, I hope you get cash before you let the lease leave your hand and not a draft or order for payment/bill of exchange. Give the lessee a copy, boldly marked copy to hold onto until you have cash then they can have the original, or let your bank act as escrow to hold and not release your lease until certified funds arrive.
Kurt Erickson said:
We are in negotiations now for $200/acre. Our property is in Section 32, Slope County. Part of the family wants to hold out for $500.
Sorry RW…just now getting back to this forum. Township 135 N, Range 101 West of the 5th P.M. We have Section 30 SE 1/4, Section 32 S 1/2
Kurt, My family is in 135 98W Sections 7 & 18. I am wondering who you are negotiating with?
Tom
Hi Tom,
The name of the company is Lazer Petroleum. We ended up with the $200/acre price on the lease.
I would hold out for a lot more than 50 - we were offered this a year ago - oil companies are moving south and that will be in Slope - we hope - there is a lot more than $50 at stake - just wait - that is my advice - we have rights at 136/104.
We did… $200. However that is nothing if they drill and hit oil on the property.
Kurt - my family owns mineral rights in Sect. 34 & 35 in same Township & Range as you. I have never seen this land. All I know is that it is NE of Bowman, I believe. Would you have any information for me? Is it pasture, cropland, etc? We have had no inquiries in regards to the mineral interests to date.
It has been a long time since I have seen the property, but it is farmland J.
J Kalainov said:
Kurt - my family owns mineral rights in Section 34 & 35 in same Township & Range as you. I have never seen this land. All I know is that it is NE of Bowman, I believe. Would you have any information for me? Is it pasture, cropland, etc? We have had no inquiries in regards to the mineral interests to date.
Kurt Erickson said:
Sorry RW…just now getting back to this forum. Township 135 N, Range 101 West of the 5th P.M. We have Section 30 SE 1/4, Section 32 S 1/2
Every now and then I call the Slope County assessor’s office and ask if there is any activity and not too much yet - they said it is a matter of time and she thought that the infrastructure could still not keep up with what they have going on - roads, housing, etc. I have not seen the land either - my sister and I inherited it and we grew up in ND - my father bought the rights before I was born - just patience to see what will happen.
Merry
Kurt Erickson said:
It has been a long time since I have seen the property, but it is farmland J.
J Kalainov said:
Kurt - my family owns mineral rights in Section 34 & 35 in same Township & Range as you. I have never seen this land. All I know is that it is NE of Bowman, I believe. Would you have any information for me? Is it pasture, cropland, etc? We have had no inquiries in regards to the mineral interests to date.
Kurt Erickson said:
Sorry RW… just now getting back to this forum. Township 135 N, Range 101 West of the 5th P.M. We have Section 30 SE 1/4, Section 32 S 1/2.
Kurt, I’m sorry I missed your reply, on the basis of better late than never and because it might apply to someone else also, I see that you are close to the established Amidon field. In 1974 there was a vertical well that did relatively poor in the Red River and Bird Bear formations. The fact that the well was poor being a vertical wouldn’t bother me too much as a vertical Bakken well is usually poor also. I think your area has potential, it’s just that the pickings are relatively richer elsewhere for the time being. Some people may think of your area as being the crumbs to be swept up at a later date but I think if you consider the long term, say the well averages 10 barrels a day over a life of 20 years at $80 a barrel it would produce $58,400,000 worth of oil. Even if it produced less oil or the price went to $50 a barrel, it would still be worthwhile over the long term. The sad thing is we have no influence with the operators and you have to wait for them to come to you. The good thing is that as technology improves the amount of recoverable oil rises, so while you would like to have a well now, I think you will be rewarded for the time you have to wait. I wish you good fortune with your minerals.
Kurt Erickson said:
Sorry RW… just now getting back to this forum. Township 135 N, Range 101 West of the 5th P.M. We have Section 30 SE 1/4, Section 32 S 1/2.