I hold mineral rights for property in Divide County ND and would like to know current leasing rates and terms as well as who is actively leasing in the area. My rights are in Township 161 North in Section 33.
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Lease to Formentera April 2025
Township 163 North, Range 98 West, 5th P.M. Price/Acre: $200.00 Lease Royalty Rate: 17.00% Term: 3 Years + 2 year option for $300/acre
Thanks for the heads up. It is Range 101 in Township 161 North.
Most of the sections in that township are already in production. The open ones have had leases posted in the last 24 months. The royalties range from 1/8th (12.5%) to 1/6th (16.67%). Bonus amounts are not public. The main agents leasing are Aurora Energy, KODA Resources, Murex Petroleum an Phoenix Energy.
The newest permits are for a set of three section horizontals planned in 31/30/19 by KODA for the Kolsch wells. The next obvious sections would be 18/7/6 for another set of multi-section wells. The other sets would be 29/32 and 28/33.
Actually they seem to be tiptoeing around section 18 in Fertile Valley. This may be a good thing as it will mean any revenue will be in a following year. Too much in one year can raise your medicare premium, and push income into a higher bracket.
Lynx Oil Company is another company that seems to compete with Phoenix and Koda in North Dakota as of late. Sometimes the smaller family offices can move quickly and pay more than some of the operators.
Our experience with Lynx was that they were first contact. But the offers were low. When offers come in, take your time, as Phoenix might be a few weeks behind, and then Koda a month later.
I’ve worked with Lynx and other independent family land shops, and more often than not, they beat the competition on price, sometimes even outperforming the larger operators. They’re faster, more flexible, and often willing to help with probate costs, which can be expensive. Operators, on the other hand, are slow, offer lower prices, and won’t assist with probate. They usually put you in suspense and make you handle it yourself. They also tend to have long due diligence and payment periods and can back out at any time, especially when oil prices drop. While operators often say, “We’ll be the ones drilling it,” that’s misleading and can take advantage of landowners who are less informed about the process.
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I didn’t intend to slander Lynx or any other oil company in the Bakken. We signed multiple leases this year. we were the most successful when we were able to engage with more than one company.
Our best offers came with patience and more than one operator making an offer. It was slow, and the due diligence was 45 business days. The process drove me nuts. End result: bonus money in the bank with good lease terms and clauses. The end results were absolutely worth it.