Needing some advice on my minerals in Mountrail county North Dakota. 157n 92w section 11. Have considered selling them but not sure who is a reputable company. I would also consider hanging on to them if the current well is in a desirable location. Seems there is activity around the area but not in my location. Would appreciate some advice on the matter.
You are in a township that was drilled mostly in 2008-2014.The Operator is Oasis. No new wells have been drilled since 2014. Any buyers would be buying known production and maybe thinking about some upside. In my experience, buyers offer a discounted cash value for the current production (to account for the time value of money). Your choice is to get some value now from a buyer or just wait out your well and collect royalties as they come. The well is in its normal decline, so you will not get much either way.
Thee was a little bit of leasing in sec 3 & 24 a couple of years ago, but nothing impressive.
The general advice on here is to not sell minerals if you don’t need the money, but whether or not to sell is a personal decision. This area is on the fringe of the basin. Someday, operators may come back in here and drill some infill wells, but it doesn’t appear that will happen anytime soon. If you do decide to sell, you will certainly get offers as many mineral buyers are gobbling up producing right now.
Thank you! I appreciate the advice. Very helpful.
$0.02
As Max says, on the edge of the basin. Mostly single wells per unit up there as the well results (from 2008-2014) didn’t really warrant any more drilling. You just have the one old 2008 vintage lateral in Sec 11, it’s quite poor so your checks should be low and you don’t want to sell for anything relative to what you are currently getting (like 40-100 months of cash flow). IMO, you want to hold out for more wells and/or someone who would pay you as if more wells will come (eventually).
In the end, most units in the Bakken should get 4-8 wells. Assuming prices are high enough to make it economic. Oasis drilled a number of units by you (see map) in the 2010s as if they could fit 8 wells in a unit. (i.e., they drilled half a unit with 4 wells). Those wells were not very good by 2010s standards. But those wells were fracked with 10 year old technology and, frankly, these days wells that make 300,000bo over their life may just make some sense. Then you have Liberty who makes their $ doing big slickwater fracs on the lesser quality parts of the Bakken…they have two wells right by you that are going to make a good bit more oil than the Oasis wells (even scaled down to two miles). So maybe newer fracks would get better results around here.
Oasis is running two rigs in the Bakken. They are down in McKenzie Cty drilling better areas. They may not get up to this area for a long while. They may sell it to somebody else who might do it faster. Like Liberty for instance. I guess conceivably it will never happen. But a lot of the Bakken is fully drilled up and the rigs have to go somewhere assuming we still need to make oil in the US. There is unproduced oil here. So don’t sell your minerals to anybody who isn’t willing to pay you more for that unproduced oil. IMO. What would that number be? I don’t know…but WAY WAY WAY more than your current check.
Thank you for responding. It sure is a crummy well!
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