I currently have mineral rights in Williams County, ND. Curious what a fair market lease is in Township 158, Range 97 West.
Alice:
The area in T158N;R97W is in the New Home Field. Currently, there appears to be 5 confidential wells and one active well. You didn't specify your Section and this will have major impact on the bonus amount. Since these are confidential wells, the production has not yet been revealed. The only active well is in T158N;R97W;Sec 21. Your bonus amount will be directly impacted by the proximity of your well to others in this area. I have no access to the production data on the active well in this field but this might be a very good starting point to address. Also, as these other wells are removed from the confidential status, you should get a better idea about what bonus amount to expect for your minerals. It might be wise to wait until these wells are removed from the confidential status unless you have been offered an amount per acre and % royalty that you can't turn down. Bonuses in the area just South of yours has leased for $2500 -3,000/acre and I have a small amount of acreage in this area. Again, don't get in a hurry as the area you are located in appears to be undergoing current development.
The section is 26 NW. This was very helpful. I really appreciate your advice.
Alice:
This active well that I previously referred to is operated by Crescent Point Energy; lease name is Perry Larson; the location is approx. two and one-half miles from your area. As I stated earlier, I have no access to the production figures on this well but perhaps someone on this forum can assist you in this matter.
Thanks again Charles!
Charles,
Does this help? I am unsure how to read this...
NDIC File No: 19338 API No: 33-105-01915-00-00 County: WILLIAMS CTB No: 119338 Well Type: OG Well Status: A Status Date: 1/3/2011 Wellbore type: HORIZONTAL Location: SESW 21-158-97 Footages: 250 FSL 1420 FWL Latitude: 48.489241 Longitude: -103.227145
| Lateral 1 Start Coordinates 16 N 5 E From Wellhead, End Coordinates 10097 N 13 W From Wellhead |
Current Operator: CRESCENT POINT ENERGY U.S. CORP. Original Operator: ANSCHUTZ EXPLORATION CORPORATION Current Well Name: PERRY LARSON 1-21-16H-158-97 Original Well Name: PERRY LARSON 1-21-16H-158-97 Elevation(s): 2289 KB 2257 GR 2257 GL Total Depth: 19945 Field: NEW HOME Spud Date(s): 8/20/2010 Casing String(s): 9.625" 2004' 7" 10441' Completion Data Pool: BAKKEN Perfs: 10441-19945 Comp Dt: 1/3/2011 Status: F Status Dt: 1/3/2011 Cumulative Production Data Pool: BAKKEN Cum Oil: 12587 Cum MCF Gas: 24858 Cum Water: 22293 Production Test Data IP Test Date: 1/3/2011 Pool: BAKKEN IP Oil: 44 IP MCF: 0 IP Water: 422
Alice:
The IP Oil: 44 is the "initial production" of 44 barrels of oil. The Cum Oil is the oil produced during the 6 month confidential period. Again, I don't have the access to the production from the time the confidential period was over to current, but if someone subscribes to the NDIC publication, they could advise you on how this well is performing. Keep in mind, the production figure declines as time marchs on. This well is not standout compared to other Bakken wells but I feel that you should get a decent lease on your minerals. As I stated earlier, there are other wells on confidential status in that area and you might keep tabs on their production figures after the release dates. Take your time and don't get in a hurry as you will most likely get a better lease in the end. Be sure not to lease for more than 3 years and don't agree to an extension. I would demand a 20% royalty at the least. Good luck.
Alice Briggs said:
Charles,
Does this help? I am unsure how to read this...
NDIC File No: 19338 API No: 33-105-01915-00-00 County: WILLIAMS CTB No: 119338 Well Type: OG Well Status: A Status Date: 1/3/2011 Wellbore type: HORIZONTAL Location: SESW 21-158-97 Footages: 250 FSL 1420 FWL Latitude: 48.489241 Longitude: -103.227145
Lateral 1 Start Coordinates 16 N 5 E From Wellhead, End Coordinates 10097 N 13 W From Wellhead Current Operator: CRESCENT POINT ENERGY U.S. CORP. Original Operator: ANSCHUTZ EXPLORATION CORPORATION Current Well Name: PERRY LARSON 1-21-16H-158-97 Original Well Name: PERRY LARSON 1-21-16H-158-97 Elevation(s): 2289 KB 2257 GR 2257 GL Total Depth: 19945 Field: NEW HOME Spud Date(s): 8/20/2010 Casing String(s): 9.625" 2004' 7" 10441' Completion Data Pool: BAKKEN Perfs: 10441-19945 Comp Dt: 1/3/2011 Status: F Status Dt: 1/3/2011 Cumulative Production Data Pool: BAKKEN Cum Oil: 12587 Cum MCF Gas: 24858 Cum Water: 22293 Production Test Data IP Test Date: 1/3/2011 Pool: BAKKEN IP Oil: 44 IP MCF: 0 IP Water: 422
Ms. Briggs, another well about the same distance from you in 158 - 96 - section 31 drilled by Hess has done 65k barrels in 9 months, july being the last month I can see production for. Hess has another wells as close to you in 157 -97 - section 3 that has done 63k + barrels in 18 months. Hess has more wells just south of you and a little more east and west that seem to be doing pretty well. My take on this is I would rather have my acres drilled by Hess. Hess may be the more experienced driller and may have better completion practices. In your area Hess has the better track record for certain. While the wells in your area won't qualify for monsters, I think your acres can probably do better than the 12.5k barrels that the Crescent Point well [ original operator Anshutz], which seems to have had troubles from the start, has done in 19 months. I think your acres are better than using the Crescent well as an example. Now that I have explained my reasoning, I have no current figures for lease rates in your area. I would ask for 20% royalty and $1500 per acre and be open to some negotiation on bonus but not the royalty. If it's a poor well they weren't going to make money on it anyway, 20% of nothing is still nothing, and if it's better than expected you both make money and what could be more fair than that?
What did you end up leasing for? I am looking to see the going rate for
Township 155 North, Range 95 West of the 5th P.M Section 1: SE 1/4
I have been offered 1500 acre and 20% any advice would be great