MONTANA: 120 Acre Land - Oil & Gas Lease Rights - MT

This prime oil and gas lease acreage is located in an area of extensive production fro the March Apex field in northern Montana close to the Canadian Boarder,.

You are acquiring a 100% mineral interest (not fractionalized nor in partnership) in the parcel.  While this parcel is not yet producing, there has been interst in the area by several major oil companies.

Once sold to an oil company for development, in addition to the up-front cash bonus drilling fee, you also hold back a royalty interest as well.  This percentage can range from about 3% to 6% of the total production.  So for an example, if successfully drilled and oil production were 500 barrels per month.  At today's average price of about $60.00 per barrel would gross $30,000.00 per month.  The oil company, of course, takes the lions share of that (because they take the risk of drilling) but if your Royalty Reserve is 5% (somewhere between 3% and 6%) your monthly royalty would be $1,500.00 per month.  (See the Royalty Graph Illustration in pictures)

Of course there is nothing to stop you from drilling the land yourself, but it can get expensive that's why the way I've done it in the past is to let the oil company take that risk and simply take back a royalty percentage.   Even if the lease is not successfully drilled (which can happen - there are no guarantees in this) you would still receive the up-front cash bonus regardless, once the lease sells to an oil company (although the monthly royalty income is where the big dollars are).

Once the lease is in your name (by virtue of a formal assignment that I can prepare upon receipt of your payment) oil companies can contact you directly to negotiate a sale and overriding percentage.  Or you can engage the services of a lease broker to actively market your lease to oil companies that are active in this area.  There has been interest expressed in this particular lease, and it remains subject to prior sale - anytime prior to auction close.

The companies that are active in the area are:  North Sands Oil Company, George Dobson, Ranck Oil and Quicksilver Energy and could prove to be likely candates to ultimately purchase and develop this parcel along with a couple of others we've spoken with.

Upon successful bid you agree to remit a $250.00 deposit (paypal prefered).  I will forward you (2 day air) everything on this parcel including a sample of the formal assignment that will record it into your name (or any name you specify - some use a trust - if individual must be U.S. Citizen).  Please take 15 days fully review everything to your total satisfaction.  If, for any reason, you decide against going forward, return the items to me and I will immediately refund your money.  My eBAY reputation is very important to me, should you have any questions please feel free to email or call 800.673.8076.  (2 Other MT parcels and 3 Wyoming Parcels also available)

Good luck in the bidding - Stan

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