Making money in the Bakken is all about picking the ‘only the best companies’, and even more important the ‘right drilling companies’ who have permitted leases with unit designations and at least 80% leased acreage. North Dakota is a ‘forced pooling’ state and as such you are forced to drill a well when you have a company or drilling rig operating in a specific area with 80% of the working interest ownership. The net result of such a ruling or law is you get your wells drilled. Industry, or what are called ‘heads-up investors’ who don’t put-up funds are placed into a ‘non-consent category’ and essentially ‘lose their rights to particpate’; until investors who put-up funds are paid back, and usually several times with most ‘industry operating Agreements’.

The most successful Bakken investors and the best oil companies who drill wells in the huge oil play will often invest in multiple deals, and in many horizontal wells with only reputable major oil companies, or large independants who have very strong balance sheets. The reason is simple, there are only about 200 drilling rigs in North Dakota right now, and not all of them are owned by companies with adequate capitialization, or the most experienced personnel. 78% to 81.25% net revenue interest leases are the norm…and anything less should be scrutinized carefully, as someone is getting a ‘royalty’ and not typically for putting-up any money for it. Premimums are paid for the following leashold interests: Wells permitted, ‘Spudded’ or drilling has begun with a rig on location, drilling in progress, waiting for completion or FRAC, and finally wells in production, meaning someone has not met the terms of the drilling and funding contract, and had to drop-out.

If you would like to know more, and want to participate as an accredited investor in our biggest oil boom since Alaska, let me know with a phone call, or email with your questions.

Sincerely,

Dennis W. Stutes, CEO
New Oil & Gas Technologies & Discoveries, Inc.
408 975 0800 Cell: 805 701 7761