I have some mineral rights in Dunn County that are producing right now and a company has contacted me offering to purchase the mineral rights for $5,000.00 per net mineral acre. This sounds like a good deal. Is there anything new going on in Dunn County that I should know about in making my decision to keep or sell? Thanks
What kind of production/royalties are you getting off the producing acreage now? Remember, once you seel, there is no going back. I think the price is pretty low. There still is a lot of activity going on around dunn county. If it were me, I wouldn't sell. I've been offered numerous times over the year to sell my mineral rights, and I'm so glad that I didn't. I have 4 producing wells drilled in a little over a year, with potential for more. I would be sitting high & dry now if I had sold them & regretting my decision.
Stevo, depending on where you are at and when your well was drilled they could have just scratched the surface. How many wells have they drilled on you so far? Do you have both Bakken and Three Forks production? If your acres were next to mine I wouldn't sell for twice that amount. If you will give a township range and section I will look it up for you. If you aren't right there they could be drilling 2 more wells on you right now and you wouldn't know it.
As Mr Kennedy points out, it is a matter of location, location, location. Actually $5,000 per net acre might be a very good offer depending upon where you are in Dunn County. Though as R.W. points out it may be low too. Township, Range, and Section would be useful to assess your situation. Yet ultimately it really depends on if you need the money or not.
Yes, currently producing in Dunn County since 2-2010. It started out at about 8,000 BBL/MCF per month for 2010 then about 5,000 BBL/MCF per month for 2011 and then 3,000 for 2012. 1-2013 was again at about 3,000 BBL/MCF. The location is 33-144N-95W. It was being run by Anschutz but now is being run by Oxy USA Inc.
Kay Maas said:
What kind of production/royalties are you getting off the producing acreage now? Remember, once you seel, there is no going back. I think the price is pretty low. There still is a lot of activity going on around dunn county. If it were me, I wouldn't sell. I've been offered numerous times over the year to sell my mineral rights, and I'm so glad that I didn't. I have 4 producing wells drilled in a little over a year, with potential for more. I would be sitting high & dry now if I had sold them & regretting my decision.
Yes, currently producing in Dunn County since 2-2010. It started out at about 8,000 BBL/MCF per month for 2010 then about 5,000 BBL/MCF per month for 2011 and then 3,000 for 2012. 1-2013 was again at about 3,000 BBL/MCF. The location is 33-144N-95W. It was being run by Anschutz but now is being run by Oxy USA Inc.
r w kennedy said:
Stevo, depending on where you are at and when your well was drilled they could have just scratched the surface. How many wells have they drilled on you so far? Do you have both Bakken and Three Forks production? If your acres were next to mine I wouldn't sell for twice that amount. If you will give a township range and section I will look it up for you. If you aren't right there they could be drilling 2 more wells on you right now and you wouldn't know it.
Yes, currently producing in Dunn County since 2-2010. It started out at about 8,000 BBL/MCF per month for 2010 then about 5,000 BBL/MCF per month for 2011 and then 3,000 for 2012. 1-2013 was again at about 3,000 BBL/MCF. The location is 33-144N-95W. It was being run by Anschutz but now is being run by Oxy USA Inc.
Eastern MT said:
As Mr Kennedy points out, it is a matter of location, location, location. Actually $5,000 per net acre might be a very good offer depending upon where you are in Dunn County. Though as R.W. points out it may be low too. Township, Range, and Section would be useful to assess your situation. Yet ultimately it really depends on if you need the money or not.
Looks like wells are being drilled or have been drilled all around the location you mentioned. With improved drilling methods, a lot of the newer wells will probably be re-worked. It's a gamble, but I would NEVER sell, unless ofcourse you need the money.
Stevo, that is a very good area. Your well IP'd at 1,562 bbl oil, cumulative oil production of 182,880 as of january this year.2,982 bbl oil in january.I think it likely that you are going to get another well within the next 2 to 3 years if not sooner. I think you also have untapped Three Forks formation potential. Marathon is drilling secondary wells right next to your spacing right now. More spacings than not around you have a second or third well. It's yours and I won't tell you not to sell it, in fact you are exactly the position I advised someone to look for when buying someones producing minerals to profit, single good well declined, ripe for a new well. I wouldn't be surprised if you got a few friend requests wanting to top your present offer by $250 TO $500 an acre. If you got 20% royalty they might even go more. If you sell someone is going to get a nice little investment. Good luck.
Thanks and please keep me posted if any new information becomes available.
Kay Maas said:
Looks like wells are being drilled or have been drilled all around the location you mentioned. With improved drilling methods, a lot of the newer wells will probably be re-worked. It's a gamble, but I would NEVER sell, unless ofcourse you need the money.
Thanks for the information and please keep me posted of any new information that becomes available.
r w kennedy said:
Stevo, that is a very good area. Your well IP'd at 1,562 bbl oil, cumulative oil production of 182,880 as of january this year.2,982 bbl oil in january.I think it likely that you are going to get another well within the next 2 to 3 years if not sooner. I think you also have untapped Three Forks formation potential. Marathon is drilling secondary wells right next to your spacing right now. More spacings than not around you have a second or third well. It's yours and I won't tell you not to sell it, in fact you are exactly the position I advised someone to look for when buying someones producing minerals to profit, single good well declined, ripe for a new well. I wouldn't be surprised if you got a few friend requests wanting to top your present offer by $250 TO $500 an acre. If you got 20% royalty they might even go more. If you sell someone is going to get a nice little investment. Good luck.
Marlene,
Be patient. I live in Texas, but have friends in ND who know what's going on. Landmen & oil companies are NOT going to show their hand when it comes to negotiating with you. I had a landmen offer me 100K for my mineral right on 66 net acres about 4 1/2 years ago & also give me the "song & dance" about how much it costs to drill a well. They have yet to drill a "dry hole". Be patient & good things will happen.
Marlene, you are on the edge for the moment. The operator did drill what they are calling a dry hole right next to 144-91-15. There is different kinds of dry though. Most of the Bakken was considered dry not too long ago.
145-91-10 is a different story. Tracker Resources drilled a well near you in section 17 and it has remained inactive and Tracker has sold it to Hess. Hess wouldn't have bought it for no reason. Unfortunately, Hess can probably hold those leases by paying $1 per acre per year forever, or at least until they decide to try to get some production. I firmly believe that this is your better area. Kay has a good point that the Bakken is spread over a huge area and the operator rarely misses altogether, but there are places that the Bakken is thin and could be lacking the gas to make the field pressure to make what is there reluctant to migrate to the wellbore and come out. Marlene, you are stuck in the waiting game, waiting for Hessprobably to do something with that shut in well. Until Hess does something I don't think you are even going to get offers to buy your acres for amounts I would consider serious. I wish I had better to tell you.I know it's not easy being 10 miles away from where the action is.
thanks for the info. I’m in no hurry. Continental holds the leases right now, but the lease on both pieces is up this year, so we’ll just wait and see. Curiosity more than anything. Thanks again!
r w kennedy said:
Marlene, you are on the edge for the moment. The operator did drill what they are calling a dry hole right next to 144-91-15. There is different kinds of dry though. Most of the Bakken was considered dry not too long ago.
145-91-10 is a different story. Tracker Resources drilled a well near you in section 17 and it has remained inactive and Tracker has sold it to Hess. Hess wouldn’t have bought it for no reason. Unfortunately, Hess can probably hold those leases by paying $1 per acre per year forever, or at least until they decide to try to get some production. I firmly believe that this is your better area. Kay has a good point that the Bakken is spread over a huge area and the operator rarely misses altogether, but there are places that the Bakken is thin and could be lacking the gas to make the field pressure to make what is there reluctant to migrate to the wellbore and come out. Marlene, you are stuck in the waiting game, waiting for Hessprobably to do something with that shut in well. Until Hess does something I don’t think you are even going to get offers to buy your acres for amounts I would consider serious. I wish I had better to tell you.I know it’s not easy being 10 miles away from where the action is.