What are fair lease terms in Stark County, ND

Oil and Gas Leasing Help
1

I have mineral interest in ND stark county township 137 range 99 sections 28,29 &30.

What is a fair lease agrement terms ie price per acre 3 yr option for 2 % of oil?? Help

2

Mr. Hecker:

Looking at the NDIC website GIS map, it appears that this area has no activity in the immediate vicinity of your minerals. Also, the bonus/acre amount at the February State auction for an area near your minerals, specifically, T138N;R94 was auctioned for $275 - 475/acre. I would contact others in your area for information about the current bonus/acre amounts or research what companies are leasing or have leased in the area and contact their land departments. You did not indicate the amount of mineral acreage you have but the larger amount, the better for advertising to interested parties.

3

I think you mean 20% ? Also that would be a 3 year lease ? I think the best information to be had is from local mineral owners and what offers they have received, and when they received them. I just took a look at your area for producing wells. There was a verticle well 2 miles SW of you but it wasn’t great. Alot of dry holes around you, but none drilled on your minerals evidently. If I understand correctly, things can be hit or miss in Stark co. In your position I would certainly lease if I had an offer. They may not be able to get a rig free to drill you in 3 or 4 years, with better prospects elsewhere. In any case I don’t think they are going to make you a great offer, from what little I can see. I would not let them do seismic testing until I had a lease. If they test and find indications of a large amount of oil, they won’t share that information with you. If they test and it doesn’t look promising, your lease offer may disappear. I hope this helps and good luck.

4

Christ,

If you are in control of a large amount of acreage, I would advise you to be patient, determine the potential of your minerals, clear your title, monitor drilling activity and wait for a good operator to come to you. I believe the play will move your way eventually so you should be able to make a fair deal then that will benefit you and an operator. There are plenty of bad deals out there right now due to the popularity of the play. You don't want that headache.

Gary L. Hutchihson

Minerals Mangement

5

Hi Mr. Hecker,

We have minerals in 138-99-28 and leased them for $650.00 per acre. Along with that info is the fact that we had other leases with the same guy and he may have given us that much bonus for that reason.137-99 is not right in the thick of drilling country, although it could be in the not too distant future. I wish you luck in whatever you do.

Wes Luke

6



Wes Luke said:

Hi Mr. Hecker,

We have minerals in 138-99-28 and leased them for $650.00 per acre. Along with that info is the fact that we had other leases with the same guy and he may have given us that much bonus for that reason.137-99 is not right in the thick of drilling country, although it could be in the not too distant future. I wish you luck in whatever you do.

Wes Luke

7

who did you lease to. My be I can get the same deal.

8

Hi Christ,

Please address your messages to the person you are messaging so everyone will know. It makes for a lot less confusion. Thanks in advance.

If you were addressing me, I will give you the name of the land leasing company with the caveat that I do not recommend them. We are having issues with them as we speak. Blanca Peak is the leasing agency. Andy Marlette is the landman. He supposedly leased our minerals with a 60 day draft. That was 45 days ago and no lease as of today. Please heed the advice given you above and take time to research any landman/company to see if they have a good reputation. Some very knowledgable people have given you advice freely trying to help. I'll get off my soapbox now.

9

Thanks for your reply.

Christ

Wes Luke said:

Hi Christ,

Please address your messages to the person you are messaging so everyone will know. It makes for a lot less confusion. Thanks in advance.

If you were addressing me, I will give you the name of the land leasing company with the caveat that I do not recommend them. We are having issues with them as we speak. Blanca Peak is the leasing agency. Andy Marlette is the landman. He supposedly leased our minerals with a 60 day draft. That was 45 days ago and no lease as of today. Please heed the advice given you above and take time to research any landman/company to see if they have a good reputation. Some very knowledgable people have given you advice freely trying to help. I'll get off my soapbox now.