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Oil land leases

by , Posted to on 02/14/2012 07:29 AM | "Quote" | "Quick Reply" |

Joined: 02/11/2002
Location: ND
What are they getting per acre on their oil land leases in North Dakota and Montana?
How long are their leases for?  Heard they only have so long to drill for oil once they lease the land is that correct?  Had a person inquire about leasing our land but we said no at least at this time.  They didn't offer very much as we are in central ND. 2K2  Don't think i will see it here in my life time but maybe our kids will and they can cash in on it!
Do the bigger companies pay more for leases?
What does the land owner get if they hit oil every 8th barrel or is it better than that?
Any info greatly appreciated. 
We in the central and eastern part of ND hear so many rumors and i am sure we don't even dare to believe half of them.
Heard the traffic is terrible out there.  My bride and i want to drive out there this summer hopefully if my body will cooperate.  Let me know some places to check out and how things have changed.
Oil brought money to our State which is good but the trouble is at what expense.  I know there is good and bad.  Many people have jobs and good paying jobs.  Hopefully they aren't spending it as fast as they make it.
Johnny 7
Re: Oil land leases
by on 02/14/2012 08:07 AM | Reply #1 | "Quote" | "Quick Reply" |

Joined: 02/24/2010
Location: ND
I wouldnt hold your breath on getting really anything that far east. Im highly doubting that there will be much, if any activity east of Minot. There were people in the plaza/berthold area that got LESS money this year/contract on their oil leases, compared to previous years since the big push is going southwest. Alot of oil leases around that area are near the 60-80 bucks per acre right now. I saw a few people getting around a 100 per acre. NOW, that is a one time payment every 3-5 years, depending on your contract. Oil lease prices are going much higher further west and southwest. If someone was to hit oil, it is a 1 out of 6 share. You get one barrel of oil for every 6 that come out of the ground. I will have to ask a few of my family members what they are getting per acre right now as im not sure on the exact numbers. As for the 60-100 acre for oil leases, this is coming from one of the bigger players in the oil field in ND currently.
brokenbackjack Said:
What are they getting per acre on their oil land leases in North Dakota and Montana?
How long are their leases for?  Heard they only have so long to drill for oil once they lease the land is that correct?  Had a person inquire about leasing our land but we said no at least at this time.  They didn't offer very much as we are in central ND. 2K2  Don't think i will see it here in my life time but maybe our kids will and they can cash in on it!
Do the bigger companies pay more for leases?
What does the land owner get if they hit oil every 8th barrel or is it better than that?
Any info greatly appreciated. 
We in the central and eastern part of ND hear so many rumors and i am sure we don't even dare to believe half of them.
Heard the traffic is terrible out there.  My bride and i want to drive out there this summer hopefully if my body will cooperate.  Let me know some places to check out and how things have changed.
Oil brought money to our State which is good but the trouble is at what expense.  I know there is good and bad.  Many people have jobs and good paying jobs.  Hopefully they aren't spending it as fast as they make it.


 
Re: Oil land leases
by on 02/14/2012 08:11 AM | Reply #2 | "Quote" | "Quick Reply" |

Joined: 03/05/2009
Location: ND
 Nothing if ya leased to Chesapeake recently. Badum Dum Ching!



Re: Oil land leases
by on 02/14/2012 08:37 AM | Reply #3 | "Quote" | "Quick Reply" |

Joined: 07/14/2003
Location: ND


brokenbackjack Said:

What are they getting per acre on their oil land leases in North Dakota and Montana?

I assume we are talking mineral leasing versus actual land.  It's all over the place.  Anywhere from $30 to $1,500 + depending on where you are.  In hot oil country I wouldn't expect anything less than 600 and probably around $1,000 to 1,200 is correct.  When you get to the "unknown" areas I'm sure they won't lease for much.

How long are their leases for?  Heard they only have so long to drill for oil once they lease the land is that correct? 

Again sort of an all over the place deal.  You may be able to work that into the deal.  A lot of times it is around 3 years.  But if you get leased for cheap perhaps the talking point will be it must be a shorter lease.  I don't know, lots of scenarios and with gag orders put on many people (my family included) it is tough to get all the mumbo jumbo on the floor.  I advise getting a hold of the folks out west that have created landowner groups.

I also suggest looking for an attorney that is skilled in negotiation.  Don't look just in the boundaries of North Dakota state lines.

Point is, once you lease and they drill.  You are forever stuck.

Had a person inquire about leasing our land but we said no at least at this time.  They didn't offer very much as we are in central ND. 2K2  Don't think i will see it here in my life time but maybe our kids will and they can cash in on it!

Again I assume you are talking leases but holy smokes did you drive home a point that sits very close to me.  My dad fought for quite some time on surface issues.  Minerals, we were taken to the woodshed.  I'll just flat out tell you we were leased for $35 or so bucks in regard to our minerals.  Same situation where we've been through it before, oil is unobtainable and they moved on.  Well, they don't fill you in with all the goodies and the details.  They started having around 95% + success.  That $35 was a joke but that is what happens when you are the guinea pig and don't have the cash upfront to do some major negotiation.  Plus, you also have many times where you don't just contend with your own decisions, you have to weigh in others and sometimes they want the lease NOW, NOW, NOW.  Fun stuff.

Make sure you do the research on the geology below you.  Watch out for multiple formations...should negotiate that into the lease!!!!!  We didn't and burn baby, burn.

Now back to your kid comments.  Dad apologized to me on the phone and said he has run out of time and the ability to negotiate.  He said we one some battles but lost many more and wanted to say sorry for how the land is forever tied up in easements, roads, electrical lines, pipelines, lost to production, etc.  Said he won't suffer from it but us kids will.  Kind drives it home if you think about it.

Point is, make sure you don't get warm and fuzzy inside when a landman comes calling.  Think about 20 years from now or beyond.  Once it starts, it changes things.  Go to sleep knowing you did all you can do.

Granted, you may never see a rig but still, if you lived without the check before, you can live without it in the future.  Bottom-line is, they will drill no matter what if they start finding success.  Remember that.

Do the bigger companies pay more for leases?

I cannot really answer.  Bigger companies may be able to but they also have more clout to out do you on the negotiation table!

What does the land owner get if they hit oil every 8th barrel or is it better than that?

Again, guinea pigs like us got what most did in the early stages.  That was an 1/8 royalty.  If you take note to what the state just asked for changes on it was the royalty.  They are now asking for 3/16 which is the going rate.  Negotiate that if you can.  To heck with the pathetic land damage they give a person (robbery).  Negotiate it by barrels of oil if you can.  Or give it heck on both ends.  As you have done, saying no won't hurt you.

Any info greatly appreciated.

We are years upon years separated from it now.  So you can take my words and put an out-date stamp on much of it probably.  I don't know what it is like now out there.  But still, what I wrote above could help with question asking.  Wish I could offer more but Dad was put on a gag order and he hasn't said a lick to me.  I'm drawing my points to you off other conversations from work, friends, family and just the rumor bin.  
 
We in the central and eastern part of ND hear so many rumors and i am sure we don't even dare to believe half of them.

Yeah, rumors should always be taken with a grain of salt.

Heard the traffic is terrible out there.  My bride and i want to drive out there this summer hopefully if my body will cooperate. 

Let me know some places to check out and how things have changed.

When things are in the exploration stage it is down right ridiculous.  Hundreds to thousands of vehicles go in and out of a well.  The best time to come take a look at the misery of traffic is toward dusk.  Most roads are made of questionable gravel and the lease roads are often scoria.  On a calm summer day you are scared to death to drive down a gravel road because the dust is so bad.  With our heavy air in the summer the dust just rides like a heavy fog.  With the sun beating on it at a low angle it is almost a nice sight until you remember it isn't fog you are looking at, it is a dust bowl.  Of course, you can then check out the nice roads.  For giggles, put on a nice new pair of blue jeans and freshly oiled leather or suede shoes.  Walk though the road ditch about 300 yards and then come back.  Take a look at your lower body.  I bet you feel like taking a shower!

Once it gets dark head to Watford City and pull off in a parking lot where Highway 85 and Highway 23 converge by the Kum and Go gas station.  I bet you cannot keep count of the headlights after the first 40 seconds!

I haven't even been to Williston.  Not sure I want to.

For another look, head to Tioga and see what highway 40 is like going into it.  While there, head a little further west and pull into the gas station at Ray.  Keep track how long it takes for you to do a left turn or right turn.

While in Williston and Watford City take a gander at the endless amount of campers set up.

The list can go on.

Oil brought money to our State which is good but the trouble is at what expense.  I know there is good and bad.  Many people have jobs and good paying jobs.  Hopefully they aren't spending it as fast as they make it.

Oil will be our major source of energy until technology allows for it to slowly be replaced.  Lots of investments are going in place to find that magical alternative but from here and into the distant future (from my eyes and my lifetime) I don't see the dependency on oil going away.

That said, you MUST take the good with the bad.  Things are more responsible and as safe as possible in most situations.  But as you said, the bad cannot be gotten rid of.  I listed some.  The list goes on.  All you can do is make sure you don't wet yourself when the landman comes a knocking.  You passed the first test and fortunately for you, you are trying to get informed.  That will help you and by all means don't be afraid to ask for help.  Get an attorney or seek representation from another quality source.  Doing this on your own will just wear you down.






 
Kirsch's Outdoor Products | Fargo, ND | 701-261-9017 Garmin GPS Hunting Maps
Liebel's Guide Service | Williston, ND | 701-770-6746 liebelsguideservice.com
Jig-em-Up Guide Service | Grand Forks, ND | 701-739-9198 jig-em-up-guide-service.com

 
Re: Oil land leases
by on 02/14/2012 08:47 AM | Reply #4 | "Quote" | "Quick Reply" |

Joined: 02/28/2008
Location: ND
The 1 barrel out of every six or eight is not necessarily right. That all depends on what you negotiate for royalty. If you are in a good area and a company needs your lease I have seen 20-25%. But that is less common. More likely to get around 18.75%. It's not so much as how big the company is regarding how much they give. It's more determined by what area you are in and at what stage the leasing process is in your area. If I were you I would go to your county courthouse and check out a few other leases and go from there. Usually the leases only show the royalty and not the bonus.

There are dozens and dozens of oil companies leading here right now but only one or two or even none might be interested in leasing minerals in your area. I can't stess that enough. Even within a producing county there are huge fluctuations of royalty and bonus per acre. Again, I would talk to your immediate neighbors and see what they are getting offered because it really doesn't matter what some guy got 7 sections away from you.
One last thing, I would go to an attorney that UNDERSTANDS oil and gas law before signing anything if you have a decent amount of mineral acres. Sorry I couldn't answer more of you questions but there are too many variables that come in to play and there are no set rules. So the best advise would be to talk to your neighbors and see what they are being offered and go to the courthouse and check the most recent recorded leases for terms and royalty and also what kind of provisions they agreed to.
Hope some of this helps.
 

Re: Oil land leases
by on 02/14/2012 09:03 AM | Reply #5 | "Quote" | "Quick Reply" |

Joined: 02/28/2008
Location: ND
I didn't see Tim's post before I sent mine. He got a lot of it right. After reading Tim's post you should understand why you should see an attorney.
 

Re: Oil land leases
by on 02/14/2012 09:18 AM | Reply #6 | "Quote" | "Quick Reply" |

Joined: 02/11/2002
Location: ND
One of our engineers for our rural water talked with a Halliburton engineer and he told him at this time they are only able to extract 10% of the oil with our present technology.  If this is true and i have no reason to doubt it, then think of all the oil that is left to be developed in the future.  In our are 2K2 there were test holes drilled here in the 50's and one is only 2 miles from our farm.  My Dad was told there is oil here but it is deep.  Don't know what they meant by deep as i was very young at the time and my Dad has long passed away.  A well was drilled here a couple of years ago and they hit a huge natural gas vein.  Probably a lot of it by the sounds of things in this State.
Tim you are spot on when talking about thinking before signing.  I am not going to jump on the band wagon and sign anything.  I was brought up to pay cash for the things you want and not take out loans.  That has stuck with me through life and while there are things i would like to have or things that i would like to do, there is nothing that i need at this time, it is just things that i would want or want to do if i had the means.  I can live without them and i feel i have been very blessed in my life.  While my body is shot, i have a beautiful and loving bride, great kids, and friends!  What more can one ask for in life?  I think my kids will have to make that decision someday. 
It is nice to have all of your thoughts and other peoples  inputs that have been through this, it is worth its weight in gold!  Thank you all for your comments and help!!!!
Johnny 7
Re: Oil land leases
by on 02/14/2012 09:27 AM | Reply #7 | "Quote" | "Quick Reply" |

Joined: 05/26/2006
Location: ND
Out of curiosity, since the Bakken continues up into Canada, is the madness up there as well or is all the drilling being done on our side?
Teach a man to fish and he will still vote for the guy who gave him a fish.
Re: Oil land leases
by on 02/14/2012 09:35 AM | Reply #8 | "Quote" | "Quick Reply" |

Joined: 02/28/2007
Location: ND
don't be surprised when they start drilling east of minot.  there's oil there from what I've heard.  won't be surprised if it goes all the way to MN.  The last extraction figures I've heard are that we can now extract in excess of 20% of the known reserves.  the technology is advancing very fast right now.  In five to ten years they will be over 50%. 
Re: Oil land leases
by on 02/14/2012 09:40 AM | Reply #9 | "Quote" | "Quick Reply" |

Joined: 01/09/2002
Location: ND

BBJ,

Tim did a good job of highlighting some of the issues and is on the right track.  Bottom line is that it is a capitalist market, you need to have your negotiating skills sharp and all the information you can find.  Talk to your neighbors, talk to anyone you can think of when it comes time to negotiate.

Personally, I as a geologist don't hold out much hope for economic wells being found that far east.  Then again, even if a well is NOT economic (meaning they don't pump enough oil to pay off the $6 million price tag) getting a 1/6 or 1/8 share of $5.9 million is stil around $900,000 to you if you owned all of the minerals.  Not too shabby over the next 20+ years.

One thing I will caution you on.  There are a lot of shady companies out there who will send you letters that sound like leases, in reality they are offers to BUY your mineral acres.  Not that you can't, wouldn't, or even shouldn't consider selling your oil minerals, just go into it with your eyes wide open.  I know of at least one person who sold their minerals recently (past year or so) because they needed the money for medical bills.  Heh heh heh, the joke is on the company who bought them as the most recent wells that came up dry are between them and the heart of the Bakken which suggests they sold something worth nothing for a pretty penny.

p.s.  if you were to consider selling, I would keep the surface minerals (gravel) separate.  No reason to have someone come in and build a gravel pit next to your house if you can help it!

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” ~ Mark Twain
Re: Oil land leases
by on 02/14/2012 09:43 AM | Reply #10 | "Quote" | "Quick Reply" |

Joined: 01/09/2002
Location: ND
eyexer Said:
don't be surprised when they start drilling east of minot.  there's oil there from what I've heard.  won't be surprised if it goes all the way to MN.  The last extraction figures I've heard are that we can now extract in excess of 20% of the known reserves.  the technology is advancing very fast right now.  In five to ten years they will be over 50%. 
You would not be able to find a single geologist to agree with that statement.  Well, at least none that are familiar with the geology of ND.

“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” ~ Mark Twain
Re: Oil land leases
by on 02/14/2012 09:52 AM | Reply #11 | "Quote" | "Quick Reply" |

Joined: 02/18/2004
Location: ND
I grew up in Fargo, moved out west just over 10 yrs ago. The little ag communities that we once had out here are almost gone. The population is growning very fast, at times its like being back in the bigger populated part of the state like Fargo, however the mass of people coming into our western communities are not the midwestern people we once had.

The southern culture is much different than ours, and a great majority of the influx is not the cream of the crop moving up to bless our towns. Some quality families coming in, a lot more not so much coming in.

Traffic, crime, drugs, vandalizem, rape, murders, dui's, etc. have risen 5 times.

However property values, some incomes, some small businesses have really benefited.

I my perfect world it would be one tenth what it is. I am not sure why we have to get all the oil we can in the next few years as if it is going to some how disappear.

None oil field people coming out west to visit must pay hundreds for a motel room, wait in lines to go dinner, lock their cars up, look at all the liter on the highways, risk their lives driving our roads, etc.... other than that its pretty awesome

LINDY FISHING





Re: Oil land leases
by on 02/14/2012 09:53 AM | Reply #12 | "Quote" | "Quick Reply" |

Joined: 11/09/2004
Location: ND
 
brokenbackjack Said:
What are they getting per acre on their oil land leases in North Dakota and Montana?
How long are their leases for?  Heard they only have so long to drill for oil once they lease the land is that correct?  Had a person inquire about leasing our land but we said no at least at this time.  They didn't offer very much as we are in central ND. 2K2  Don't think i will see it here in my life time but maybe our kids will and they can cash in on it!
Do the bigger companies pay more for leases?
What does the land owner get if they hit oil every 8th barrel or is it better than that?
Any info greatly appreciated. 
We in the central and eastern part of ND hear so many rumors and i am sure we don't even dare to believe half of them.
Heard the traffic is terrible out there.  My bride and i want to drive out there this summer hopefully if my body will cooperate.  Let me know some places to check out and how things have changed.
Oil brought money to our State which is good but the trouble is at what expense.  I know there is good and bad.  Many people have jobs and good paying jobs.  Hopefully they aren't spending it as fast as they make it.
Tim and others have offered some real solid advice. In a nutshell there are 3 main recommendations I would make 
  1. Talk to your neighbors and people in the area about what they are getting offered
  2. Hire/Talk to an attorney who regularly deals in mineral leasing. They know the laws and can check out the wording, and also are familiar with what sort of offer you should expect
  3. Be comfortable with any decision you make. I know that sounds funny, but once your name is signed on that line there is no turning back for the term of that lease. I know folks who really regret leasing for what they leased for and also know some who just regret leasing period. I also know a few who regret not accepting a lease.


Allen Said:
eyexer Said:
don't be surprised when they start drilling east of minot.  there's oil there from what I've heard.  won't be surprised if it goes all the way to MN.  The last extraction figures I've heard are that we can now extract in excess of 20% of the known reserves.  the technology is advancing very fast right now.  In five to ten years they will be over 50%. 
You would not be able to find a single geologist to agree with that statement.  Well, at least none that are familiar with the geology of ND.

I'm not a geologist, but i wouldn't agree with eyexer's statement either for what it's worth. I did stay at a Holiday Inn Express a while back though...

J
Re: Oil land leases
by on 02/14/2012 09:57 AM | Reply #13 | "Quote" | "Quick Reply" |

Joined: 07/14/2003
Location: ND

Allen Said:

BBJ,

Tim did a good job of highlighting some of the issues and is on the right track.  Bottom line is that it is a capitalist market, you need to have your negotiating skills sharp and all the information you can find.  Talk to your neighbors, talk to anyone you can think of when it comes time to negotiate.

The oil boom has pit a lot of neighbors against neighbors.  Communication is key, key, KEY!  It is natural for people to be secretive of their efforts.  Especially in the farming world it seems to be that way at times.  All I can say is you need to open that level of communication open.  Get in a room and start arguing.  Best to do it face to face instead of in back stabbing fashion.  Landmen will offer different things to different people once they get a feeling of where they are.  A neighbor can actually be a road block in your own negotiation.  That is why it is important to get as much out into the open as possible.  Now in fairness, one neighbor might have different bargaining chips and different situations.  One could not have family influences, trust influences, estate worries, etc, etc, etc.  They might see a negotiation in a different light.

All I can say is yes, use your neighbors as sources but make darn sure they will play ball.  Things are fairly okay in our neck of the woods but I know some areas where people flat out hate each other.  Quite simply, when you get people giving permission to build roads in X and it affects Y but not X you get tempers.  Same with lease agreements.  You get a bunch accepting the first offer and soon you are pigeon-holed.

Again, it all can come down to barriers where each neighbor is in "life" but knocking down the communication barriers is absolutely key.

Personally, I as a geologist don't hold out much hope for economic wells being found that far east.  Then again, even if a well is NOT economic (meaning they don't pump enough oil to pay off the $6 million price tag) getting a 1/6 or 1/8 share of $5.9 million is stil around $900,000 to you if you owned all of the minerals.  Not too shabby over the next 20+ years.

There are some pretty solid rumors that a well done to certain "standards" with certain "company secrets" can cost up toward 10 to 14 million now!  I fell over when I heard that but it came from a pretty solid source.  Hard to believe so I haven't fully bought into it but holy smokes!!!!!!!!!!!!

One thing I will caution you on.  There are a lot of shady companies out there who will send you letters that sound like leases, in reality they are offers to BUY your mineral acres.  Not that you can't, wouldn't, or even shouldn't consider selling your oil minerals, just go into it with your eyes wide open.  I know of at least one person who sold their minerals recently (past year or so) because they needed the money for medical bills.  Heh heh heh, the joke is on the company who bought them as the most recent wells that came up dry are between them and the heart of the Bakken which suggests they sold something worth nothing for a pretty penny.

p.s.  if you were to consider selling, I would keep the surface minerals (gravel) separate.  No reason to have someone come in and build a gravel pit next to your house if you can help it!

I guess I am sort of lucky.  I never had to deal with the level of stress everyone has with negotiation, etc.  Lots and lots of decisions that I'm sure cause lots and lots of stress.  Maybe in the future I will have to make decisions but much of what was made is now forever inked in the courthouse and other legal documents with very little wiggle room ever to be available again.

Hence why conservation programs tied a certain way are not appealing many times.  But that's a different subject for a different day.






 
Kirsch's Outdoor Products | Fargo, ND | 701-261-9017 Garmin GPS Hunting Maps
Liebel's Guide Service | Williston, ND | 701-770-6746 liebelsguideservice.com
Jig-em-Up Guide Service | Grand Forks, ND | 701-739-9198 jig-em-up-guide-service.com

 
Re: Oil land leases
by on 02/14/2012 09:59 AM | Reply #14 | "Quote" | "Quick Reply" |

Joined: 07/14/2003
Location: ND

johnr Said:

I grew up in Fargo, moved out west just over 10 yrs ago. The little ag communities that we once had out here are almost gone. The population is growning very fast, at times its like being back in the bigger populated part of the state like Fargo, however the mass of people coming into our western communities are not the midwestern people we once had.

The southern culture is much different than ours, and a great majority of the influx is not the cream of the crop moving up to bless our towns. Some quality families coming in, a lot more not so much coming in.

Traffic, crime, drugs, vandalizem, rape, murders, dui's, etc. have risen 5 times.

However property values, some incomes, some small businesses have really benefited.

I my perfect world it would be one tenth what it is. I am not sure why we have to get all the oil we can in the next few years as if it is going to some how disappear.

A lot wonder the same (me included) but with fracturing and the evil tag put on the oil industry they simply MUST drill while they can and while they can in an affordable manner.  Right or wrong?  I don't know, but it is the reality.  Tomorrow a big move could arise, or the next day or the day after that to end it all.  I think that's why it is a 100 mph.

None oil field people coming out west to visit must pay hundreds for a motel room, wait in lines to go dinner, lock their cars up, look at all the liter on the highways, risk their lives driving our roads, etc.... other than that its pretty awesome





 
Kirsch's Outdoor Products | Fargo, ND | 701-261-9017 Garmin GPS Hunting Maps
Liebel's Guide Service | Williston, ND | 701-770-6746 liebelsguideservice.com
Jig-em-Up Guide Service | Grand Forks, ND | 701-739-9198 jig-em-up-guide-service.com

 
Re: Oil land leases
by on 02/14/2012 10:06 AM | Reply #15 | "Quote" | "Quick Reply" |

Joined: 07/14/2003
Location: ND
P.S.

Do your homework on being a "participant" on the well.  That means you help foot the bill for drilling, production, maintenance, etc.  Some call it sweet deals but man, if you were a participant in the wells we have you'd never see green.  Pumping 80 some barrels a day?  The goal is longevity and a portfolio of diversification for the company on us.  If you were a participant and late aged I'm not sure you'd see green.

And then what if something happened and poof and issue?  Lots of dollars sitting there.

But if it works out, a person could be in a pretty good situation.  Need a hot play, a guarantee on no blow outs, no fires, oil and all that good stuff.  And then you hope the government doesn't get involved and change the rules in the middle of the game.

I'm not an expert on this.  It was looked into but found to not be advised given our situation.  That doesn't mean it isn't for others.  There are several ways a working interest owner can be setup.  Again, an attorney that knows oil can help greatly.

Just and FYI.




 
Kirsch's Outdoor Products | Fargo, ND | 701-261-9017 Garmin GPS Hunting Maps
Liebel's Guide Service | Williston, ND | 701-770-6746 liebelsguideservice.com
Jig-em-Up Guide Service | Grand Forks, ND | 701-739-9198 jig-em-up-guide-service.com

 
Re: Oil land leases
by on 02/14/2012 10:08 AM | Reply #16 | "Quote" | "Quick Reply" |

Joined: 12/11/2006
Location: MT
It also helped when my grandparents set up their lease because my sister has worked fo 5 years writing up leases and negotiating details for a company in Williston. Her knowledge of the "fine print" was very useful. Drill Baby Drill!!!!! haha
Re: Oil land leases
by on 02/14/2012 10:22 AM | Reply #17 | "Quote" | "Quick Reply" |

Joined: 02/28/2007
Location: ND
Allen Said:
eyexer Said:
don't be surprised when they start drilling east of minot.  there's oil there from what I've heard.  won't be surprised if it goes all the way to MN.  The last extraction figures I've heard are that we can now extract in excess of 20% of the known reserves.  the technology is advancing very fast right now.  In five to ten years they will be over 50%. 
You would not be able to find a single geologist to agree with that statement.  Well, at least none that are familiar with the geology of ND.


must be the same geologist that did the work for Chesapeake
Re: Oil land leases
by on 02/14/2012 10:54 AM | Reply #18 | "Quote" | "Quick Reply" |

Joined: 01/09/2002
Location: ND
eyexer Said:
must be the same geologist that did the work for Chesapeake


Yeah, Chesapeake was kind of on the fringe with their estimates of what could be considered reasonable.  Turns out they were probably far too optimistic based on their latest decision to pull up stakes here and head for greener pastures.  I am guessing their results were pretty darn bad.  Carbon rich rock is one thing, having it "cooked" into oil is also required.

Just another indicator that Lynn Helms and the State may have been generous in their estimate of how long this boom will last and the total number of wells.  Some places, like the New Town area, are rapidly approaching 80% drilled.  As the edge of what is economic and what is a loser gets better defined, the number of total wells needed will fall.  Then we will be left with just the production side of the house and that will take a lot fewer people, Williston and Dickinson will "bust" again, I am guessing in about 10 years at current prices.  A lot sooner if oil falls into the $50-60 range.
“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” ~ Mark Twain
Re: Oil land leases
by on 02/14/2012 11:12 AM | Reply #19 | "Quote" | "Quick Reply" |

Joined: 03/05/2009
Location: ND
 So nobody knows how close the oil will come to Minot or if it will go east of Minot. East 10 miles, 20,50?



Re: Oil land leases
by on 02/14/2012 11:30 AM | Reply #20 | "Quote" | "Quick Reply" |

Joined: 02/11/2002
Location: ND
The engineer for Halliburton also said they really don't know how far east it will go.  He said could go 20 miles and maybe to ND and MN border and maybe to central MN.  He said no one knows at this time and exploration is the only way it will be known.  I don't know just saying what was told to me.  Heck the older i get the more i find out the less i know!  One thing for sure is we probably only can believe 10% of what we hear or what is being told to us. 
Just darn glad i own the land that i own as it is getting higher priced and cash rent keeps going higher also.  The cash rent is great for me as we rent ours out.  We have always worked with the farmer as in tough times you have to lower the rent and in good times it goes up.
Johnny 7
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Posted On: 02/14/2012 07:29 AM
2200 Views, 37 Comments

Tags: oil, land, leases, north, dakota, montana, acre, drill, lease, getting
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Region: Minnesota

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