I have 12.85 nma's in Richland County 26N 59E Sec 30 and 19. I have a well proposal which offers lease terms of $1000/nma with 3/16ths 3yr term.
I'm not very knowledgeable about these things and normally would just take the lease. However, the well in question has already been drilled and apparently shows excellent potential.
Brigham Exploration Company said that the Johnson 30-19 #1H well produced 2,962 barrels of oil equivalent (BOE) during an early 24-hour peak flow back period. This production was composed of 2,684 barrels of oil and 1.67 million cubic feet of natural gas. The Johnson 30-19 #1H well is located in Richland County, Montana.
Brigham Exploration Company said that this well had the highest initial production rate of any well drilled into the Montana Bakken. "
I cannot afford the risks/costs of participation but I'm wondering if I should just wait and let them force pool me. Although from what I can gather the risk aversion penalty in MT can be 200%? Or should I negotiate for better bonus/royalty?
Any input appreciated.