I have an opportunity to purchase mineral rights from family in Dunn Co. North Dakota. The price is $1000/acre. The mineral rights are currently being leased (and have been twice in the past), but no oil has been found as of yet. The royalty is 3/16. Is this a risk worth taking, even for just a couple acres? What information should I use to make my decision? Thank you!
As a magnanimous gesture to a family member you are to be applauded. As a business decision in need of a return on investment, a lot more information is needed beginning with location. If the acreage is small, the transaction cost may be more than the value. However in some locations in Dunn, you may be considered a their in the future.
The land is in the town of New Hradec. What other information would be pertinent? Thanks.
Look on the lease. It will show Section, Township and Range. I need that specific information
D Schmidt said:
The land is in the town of New Hradec. What other information would be pertinent? Thanks.
I just talked to a friend in ND he said the big rig was moved from the Powell in Slope County to Dunn County to drill before the lease ran out, This is a Marathon rig. They plan to return to Slope County to continue drilling, the rig will be setup on the hill about a mile north of section 31 which is just west of the Powell well, which is close to being fracked, just waiting for weather to warm up. There is a saying that goes, I've already told you more than I know, this the latest hand me down I can contribute to Dunn county, and Slope county. If you would like I will pass on information as I get it, I have been promised some pictures later on. Dean woodsend
I have acres in Dunn county and it ranges from spectacular to ho hum in the Bakken and Three Forks. I believe that even the ho hum Bakken acres may be profitable in other formations. If you give the TWP RANGE AND SECTION, Mr. Hutchinson will surely be able to tell you something about it.