I have been made an offer to buy my mineral rights. Has anyone else had offers to buy up minerals? If so, what is the going rates these days?
It is not uncommon to receive offers such as the one you received. Over the past ten years, I have had numerous offers in regards to selling my minerals, mainly from two specific companies.
158 -102 g3 only offered 600 and still say they are moving out of the area and might come back some time
Lease Bonus for around T158-R102W-S7. Have offer but would like to have what the going amount around this area is. Thanks!
You have two active wells near your mineral area; Newfield Production Co (Larson 159-102-29-29-32-1H)…this is the nearest active well from your mineral area; G-3 Operating Co. (J Haugen 1-9-4H) is another nearby well. If someone who has the NDIC subscription could provide the production figures for these wells, this would be a start at determining a bonus rate for your area. Several years ago, the area around T157N;R103W was leasing from $1500 - 2000/acre with a 20% royalty. Of course I would limit your lease term to 3 years with no extension.
The J Haugen 1-9-4H, file #22545, began producing in mid July of 2012. Total production (as of April 2013) is 48,018 BBLs, with 3516 BBLs produced in April. According to NDIC it is still free flowing (no pump/artificial lift).
The Larson 159-102, file #19969, has been producing since May 2011, but has only produced a total of 68,305 BBLs as of March 2013, not a large producer; it is also flaring all of the gas and produced 2170 BBLs in March.
On another note, I just signed a lease in 158-100, for $1500/acre and 20%, with Continental. Crescent Point is another company who has been doing a lot of drilling in the area, but I heard from a reliable source they are also pulling out area and ND to concentrate efforts in Utah.
Continental and Hess are still leasing and drilling in the area. Zenergy is also a player in the area, but like Petro-Hunt (who sold the area to G3) is concentrating their efforts in McKenzie and Mountrail counties.
I am helping my mother she has mineral rights in painted woods section 23 and 26 township 154 range 102. There is one well in those sections and one rig on painted woods. She is supposed to start getting royalty checks. Is that because if the one rig or because of the one well?
Thanks. I saw there was one new well as of January this year so that makes sense. Sounds like there could be possible 4 wells on those 1280 acres so she may eventually get 4 times the amount she is getting now?
I think this is the info Rob was looking for. The well in 23-154-102 seems to be operated by Zenergy Oil, name of the well is OWAN 23-26H, and was active as of 1/20/2013. Bob do you concur.
Rob, your well looks like a good one, IP of 1263 bbl oil. and a cumulative oil production of 25,732 bbl through March, the last month I can see production for.
Yes, she signed the division order a couple of weeks ago. She expects first check at the end of the month and they said it would be a lump sum to get caught up. I was curious abouthow many wells to expect on this 1280 acres and if the check she was getting was for the one well on her two sections. I didnt know if they pooled based on the two sections she is in or if they pooled for the entire “painted woods” field. Sounds like she is getting paid based on that one well and she will get a portion of all wells drilled on that 1280 acres
If she is getting royalty checks, this would be from the sale of oil from a well. The rig on location would not play into the royalty picture until the well is drilled / completed and oil is sold.
That is right, I saw the paper work for her. So she is .003125 interest. How does the math work to compute the royalty? You said 25,732 through march. Is it roughly $80 a barrel times 25,732 times her interest of .003125?
I concur Bob.
Rob, I think you could use $80 and not be far wrong either way. That amount is far enough under what I have been getting per bbl price that it should cover taxes and post production costs if any.
I don’t have the april figures for your well yet. It could be a week before the are out.
Remember that royalty is based on sales and not production, there is always something left in the tank so while 25,732 bbl have been produced there might be some oil that has not been sold yet. Of course you have two more months production that we don’t know the figures for yet, happy thought.
RW, wouldn’t Rob expect a division order to come his way before he would expect any checks to come. Doesn’t this order confirm that the operator agrees to your interest share, ie, legal deed, etc, and then the checks would be eventually cut?
Bob, a division order means that the operator’s legal team has decided that you own something, they are not always correct, the amount isn’t always correct and many division orders have you agreeing to pay back any money you received by mistake. Also by stipulating your interest, you are letting the operator off the hook should they underpay you. By law the operator has to pay you whether you return a division order or not, providing you have marketable title, so I do not return division orders in ND.
The pool would be 2 section with all acres share and share alike in the 1280. Rob, you are correct that she will be paid on any other wells with the laterals in that spacing. I would allow for some slippage on the first check, they don’t always come when they say they will.
does anyone know about the two wells on sect 4 N157, 98W sect 4. well # 24819 & 24820 respectively. they are being drilled by Continental Resources and have been on the confidential list for months now. are they being drilled or are they on hold for some reason. any info you can give will be greatly appreciated
regards Robert Jones
Mr. Jones, I took a look and none of the wells have been spud yet. I would say they are just not at the top of the list for infil wells. The well coming from section 9 holds the 9-4 spacing so Continental need not get in any hurry. The CASS 1-9H while I think it will be profitable is not a great well.
Wish I had something better to say. It’s just going to take time and believe me, I know how the waiting game goes, seems like everyone I know is in the middle of it right now, including me.
QUICK OWNERSHIP QUESTION: MOM HAS MINERAL RIGHTS DEED WITH PRODUCING WELLS. SHE WANTS TO SPLIT THE OWNERSHIP BETWEEN THE TWO ADULT CHILDREN. IS THIS A SIMPLE MINERAL DEED FILL-OUT FOR EACH CHILD TO BE RECOGNIZED AS THE NEW OWNERS OF 50% OF THE ACREAGE DESCRIBED IN THE ORIGINAL DEED? ANY THOUGHTS ON A REPUTABLE ATTORNEY IN WILLIAMS COUNTY TO MAKE SURE WE DON’T SCREW IT UP FOR HER? WE ARE ASSUMING THAT WHEN THIS IS DONE THEN WE INFORM OIL COMPANIES OF NEW OWNERSHIP. THANKS IN ADVANCE. KRIS