Anybody getting any leases in this area? Got a few calls but no lease yet. What’s up with this area? Anybody know.
John:
Looking at the GIS map, it appears that your area has previously been targeted for the Nisku formation and no Bakken activity noted. I have been told that lease offers for areas to the east of your area have been active. I have minerals in Township 30 North; Ranges 58 & 59, which just expired and I know that Continental is making offers in these areas. I think over the next couple of years, your area as well as others in these areas will begin to see increased activity possibly taken in with larger spacing units. These areas are undeveloped in regards to the Bakken exploration and it will take an operator with substantial capital to begin development. Currently, these operators are involved in Richland and southern Roosevelt counties mainly near the North Dakota border. Rig availability also enters the picture. Keep in mind, majority of these rigs remain in North Dakota. I would advise you to contact Gary Hutchinson, another individual on this board, as he is very knowledgeable on the geological makeup of your area and areas around you. Have you had any lease offers? I would be very careful not to hurry and sign a lease agreement without knowing exactly what is going on as this could tie you up for a minimum of 3 years and a lot can occur in that timespan. I am currently playing the waiting game with my minerals and studying the activity near my area. You have a large holding and this should be an asset in future lease negotiations. Again, contact Mr. Hutchinson as this will help shed light on your question.
Thanks Charles, we will give Gary a call.