Serious leasing companies?

Hi,

My family owns mineral rights in Williams County ,ND, Township 158 North, Range 98 West of the 5th P.M., Section 1: Lots 1,2, S1/2NE1/4. The current lease expires soon and
Diamond wants to extend it for 3 years. The offer is USD 1500/acre and 18,75% royalty.
We are not quite sure that this is the best offer we can get and we are therefore considering contacting other companies or landmen.

Any help regarding which companies we should contact or whether the offer sounds fair would be greatly appreciated.

That sounds about right for Diamond. I have minerals in 157-99 that I did not lease. Last offer was $5500 an acre, 21% and 3 years. I decided on going non-consent. My brothers have some in 159-97, their last offer was $2500, 20% and 3 yrs. We shopped our minerals to investment companies. Just know any lease you get they will subtract transportation costs, compression, treating etc. You are in a good position. My advice is read as much as possible on this forum to make the right decision for you. If you do not need the money, read up on non-consent or you can participate in the well if you have extra money laying around. Good luck!

Haven't seen any recent deals in your area, but I do believe that area has cooled off somewhat. Your lease is on file in the courthouse and I guarantee that every landman who works the area already knows your lease is expiring. If anyone else was interested you would have heard from them already. Trying to contact Companies directly will almost surely be a waste of your time. Having said that you can always hold out for a while. You didn't say how soon it is expiring, but the closer you get to the expiration date the more likely they are to up their offer.

Hess Bakken Investments II llc seems to be the most active operator in your area. They also seem to be inclined to drill 2 wells at least part of the time, I would try to get a 2 well commitment. Continental seems to be doing their usual "one and done" drilling program in the area. You might as well have 2 wells while you are waiting decades for full development as just a single well.

I have a couple of wells drilled by Continental, I would rather someone else drill my wells.



r w kennedy said:

Hess Bakken Investments II llc seems to be the most active operator in your area. They also seem to be inclined to drill 2 wells at least part of the time, I would try to get a 2 well commitment. Continental seems to be doing their usual "one and done" drilling program in the area. You might as well have 2 wells while you are waiting decades for full development as just a single well.

I have a couple of wells drilled by Continental, I would rather someone else drill my wells.

Thank you Steve! Seems like a good idea to hold out for a while. The lease expires end of May.

Steve Durrett said:

Haven't seen any recent deals in your area, but I do believe that area has cooled off somewhat. Your lease is on file in the courthouse and I guarantee that every landman who works the area already knows your lease is expiring. If anyone else was interested you would have heard from them already. Trying to contact Companies directly will almost surely be a waste of your time. Having said that you can always hold out for a while. You didn't say how soon it is expiring, but the closer you get to the expiration date the more likely they are to up their offer.

Thanks Mr. Kennedy! This is something to discuss with my family.

r w kennedy said:

Hess Bakken Investments II llc seems to be the most active operator in your area. They also seem to be inclined to drill 2 wells at least part of the time, I would try to get a 2 well commitment. Continental seems to be doing their usual "one and done" drilling program in the area. You might as well have 2 wells while you are waiting decades for full development as just a single well.

I have a couple of wells drilled by Continental, I would rather someone else drill my wells.

Awesome Advice for Mineral Owners Everywhere, As Kevin says, 1) understand the value of your minerals to industry, 2) know your legal rights, and of utmost importance, "make the right decision for you". If one focuses on lease bonus alone, as the industry desires you to do, your horizon is severely limited especially in the Bakken.
Kevin said:

That sounds about right for Diamond. I have minerals in 157-99 that I did not lease. Last offer was $5500 an acre, 21% and 3 years. I decided on going non-consent. My brothers have some in 159-97, their last offer was $2500, 20% and 3 yrs. We shopped our minerals to investment companies. Just know any lease you get they will subtract transportation costs, compression, treating etc. You are in a good position. My advice is read as much as possible on this forum to make the right decision for you. If you do not need the money, read up on non-consent or you can participate in the well if you have extra money laying around. Good luck!