Section 6 and 7 Burke county

North Dakota Mineral Rights Burke County, ND
#1

I just this minute joined this forum so forgive me if I am asking the same questions that you may have answered before. My brother and I own 6 acres of mineral rights in sections 6 and 7 and leased the rights to Hunt Oil Canada. they have done the testing and have determined that that they will drill, according to Diamond Resources. Living 700 hundred miles away makes it hard to know what to expect as far as average time before they drill, what is the average barrels per day in that area and what could one expect with a tiny plot of land after pooling. 21 relatives own 269 acres and I realize that pooling would involve even more people. Could anyone tell me if this could amount to anything or is it more likely to be a whopping 2 figures a month instead of putting a down payment on a new house? (kidding of course.) any help would be appreciated.

Thanks

Denny

#2

Dennis, would you care to put a Township and Range with that ? It would give me some idea of where you are at, what is around you. I'd have to know also how big of a down payment you would need and whether it's 6 acres each or 6 acres combined ?

#3

Denny, If you are in T160 94 W Sec 6 and 7, depending on the lots you have rights to....here is what I know of to date. 2 days ago I spoke with a landman from Continental who has dealt with Diamond Resources, among others I'm certain. On or near Feb 8th, Continental was planning to touch ground as they are involved with the Points Well. Like your family, 2 siblings and myself have 195.11 acres in Sec 6 and disappointment reigned big time when the drill date was pushed up. The original lease was due to expire March 15th.

If Hunt Oil Canada has touched soil from what I can understand and those like R.W. have been helpful in my thirst for knowledge...then the lease stops. From then on, only if oil or whatever is struck do you obtain anything further from what I understand. In the case of Continental I was told drilling might not stop until the end of April or if they strike something. From then on it would be the end of the year...closer to October at least if something starts to roll in monetarily wise.

If you have 21 relatives splitting 269 acres it still isn't small change but how much I haven't a clue either. I suppose for one it depends on what arrangement you have with Hunt Oil Canada. As I had an extremely difficult time finding anyone other than Diamond to talk to in a short period of time, and the landman was less than responsive to begin with, you may well find the same difficulty. It seems odd to me that mineral rights owners aren't provided a "case worker" or something similar that can feed information on a timely basis. For those of us that are newer to the game, I've found better support through the forum than via those who the lease was signed with.

If not done so already, I'm sure I'm not telling you anything new, the division of rights within the relatives needs to be recorded.

My impression has been that a large company seeks out your rights to pool their resources and to claim a larger pool. Once acquiring those rights, they company does not go out of their way to inform you further. Again, I don't have the history behind me but from what I've gotten so far, I've found it's like pulling teeth to get support help or return phone calls. I realize they are busy people and probabably with limited staff. But when it is your mineral rights to begin with that afforded them entry you'd think information would be far easier to obtain.

#4

Yes. Township 162 north range 94 west. I'm not selling the rights, just wanted to get some info.



r w kennedy said:

Dennis, would you care to put a Township and Range with that ? It would give me some idea of where you are at, what is around you. I'd have to know also how big of a down payment you would need and whether it's 6 acres each or 6 acres combined ?

#5

Thank you so much for your reply. You gave me a lot of welcome information as I am so in the dark in this process. I took a bike trip to Noonan two years ago just to get a feel for the land that has been in our family for decades. We were very relieved to find that we still owned the mineral rights and promptly renewed them. All kinds of thoughts went through our heads that went from thoughts of great wealth to the possibilty that it would pay for our dog and cat food each month. It's been enough time for reality to set in and now we don't spend a lot of time worrying about it at all these days but all the "buzz" about the Bakken on the news has triggered our imaginations once again. Our min rights are located in township 162 north range 94 west if that tells you anything.

Thanks again for your help and would appreciate any further info that you might have in the future and I will do the same.

Denny Baanna

T Starkweather said:

Denny, If you are in T160 94 W Sec 6 and 7, depending on the lots you have rights to....here is what I know of to date. 2 days ago I spoke with a landman from Continental who has dealt with Diamond Resources, among others I'm certain. On or near Feb 8th, Continental was planning to touch ground as they are involved with the Points Well. Like your family, 2 siblings and myself have 195.11 acres in Sec 6 and disappointment reigned big time when the drill date was pushed up. The original lease was due to expire March 15th.

If Hunt Oil Canada has touched soil from what I can understand and those like R.W. have been helpful in my thirst for knowledge...then the lease stops. From then on, only if oil or whatever is struck do you obtain anything further from what I understand. In the case of Continental I was told drilling might not stop until the end of April or if they strike something. From then on it would be the end of the year...closer to October at least if something starts to roll in monetarily wise.

If you have 21 relatives splitting 269 acres it still isn't small change but how much I haven't a clue either. I suppose for one it depends on what arrangement you have with Hunt Oil Canada. As I had an extremely difficult time finding anyone other than Diamond to talk to in a short period of time, and the landman was less than responsive to begin with, you may well find the same difficulty. It seems odd to me that mineral rights owners aren't provided a "case worker" or something similar that can feed information on a timely basis. For those of us that are newer to the game, I've found better support through the forum than via those who the lease was signed with.

If not done so already, I'm sure I'm not telling you anything new, the division of rights within the relatives needs to be recorded.

My impression has been that a large company seeks out your rights to pool their resources and to claim a larger pool. Once acquiring those rights, they company does not go out of their way to inform you further. Again, I don't have the history behind me but from what I've gotten so far, I've found it's like pulling teeth to get support help or return phone calls. I realize they are busy people and probabably with limited staff. But when it is your mineral rights to begin with that afforded them entry you'd think information would be far easier to obtain.

#6

Sorry Dennis, I wasn't offering to buy. You asked if your royalties would make a down payment on a house and to answer that question I needed to know where your acres were and how much you needed for a down payment. I also needed to know where it was to get a reasonably close answer to how many barrels per day. From 2 wells by Hess bracketing you, I'd say about 50 barrels a day average after a year. The wells varied widely in their initial production, so just enjoy it because it's downhill from there.

Dennis Baanna said:

Yes. Township 162 north range 94 west. I'm not selling the rights, just wanted to get some info.



r w kennedy said:

Dennis, would you care to put a Township and Range with that ? It would give me some idea of where you are at, what is around you. I'd have to know also how big of a down payment you would need and whether it's 6 acres each or 6 acres combined ?

#7

Thanks RW. That gives me something to go on. I have heard stories about wells in the Bakken producing as much as 3000 barrels a day and of course that brings the thought of sugarplum fairies dancing through my head. Whatever it turns out to be, it's more than we ever expected and life was pretty good before we found out so I will be happy with whatever we get but it sure is fun to think that it could be "THE BIG ONE."

r w kennedy said:

Sorry Dennis, I wasn't offering to buy. You asked if your royalties would make a down payment on a house and to answer that question I needed to know where your acres were and how much you needed for a down payment. I also needed to know where it was to get a reasonably close answer to how many barrels per day. From 2 wells by Hess bracketing you, I'd say about 50 barrels a day average after a year. The wells varied widely in their initial production, so just enjoy it because it's downhill from there.

Dennis Baanna said:

Yes. Township 162 north range 94 west. I'm not selling the rights, just wanted to get some info.



r w kennedy said:

Dennis, would you care to put a Township and Range with that ? It would give me some idea of where you are at, what is around you. I'd have to know also how big of a down payment you would need and whether it's 6 acres each or 6 acres combined ?

#8

Dennis, it's all about location, the operator and timing. Some areas will be more productive than others. I think some operators have a better track record of making the most of whatever is there. As for timing, if you were drilled in 2002 with a single frack, your well could be plugged and abandoned now after some years of low production. Barring some major breakthrough in gaining production or a large jump in the price of oil, the timing for your well is pretty good.

#9

I just realized that I told you sections 6 and seven but it is actually section 6/ lots 6 and seven. township 162 north and range 94 west. I'm not sure if this makes any difference. In trying to physically find my property on my bike trip, I was pressed for time and I'm not sure that what I was looking at was truly the right land. Outside of going to the Cty. seat of Bowbells to ask someone, is there a simpler way. I thought it would be a piece of cake as I had a map of the area but it was still confusing. I am taking another trip this year to track down some ancestry and hopefully a family member or two so I would love to see where my great uncle had his coal mine as that is located on the same property. Thanks in advance for any help you may give me.

Denny

#10