Cut out the middleman and drill it yourself (diy)?

Posted by bakken

In my previous post titled Bakken Message Board Musings, I discussed chatter of people owning mineral rights and converting that into a source of income. For some reason I couldn’t shake the thought and started doing some research. I did find a website called bakkenoil.com that seems to trade in Bakken properties, but after registering and browsing, the number of properties look to be under 10 and a few of those don’t look legitimate (I’ll keep checking though). I then expanded my search to other sites, and lo-and-behold, i was able to actually find someone selling an interest in a well in Lafayette Parrish, Louisiana on Ebay! If you are interested in bidding, click here to see the auction in action. For $6375 you can a own a 0.0000848 interest in a well operated by Royal Production Inc. However, at $85 per month in royalty income…….don’t quit your day job.

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Bakken Message Board Musings

Posted by bakken

As I do almost every day, I troll through the various message boards related to Bakken stocks. Along with the usual obfuscated swearings between longs and shorts, I have begun to notice quite a bit of banter between folks (ie individuals not affiliated with any company) who claim to have mineral rights in the Bakken region, Montana, and Texas to name a few. A recent exchange on a board involved an poster who berated another individual for overestimating lease data and NRI estimates on Bakken land and claimed he knew his facts because he had leased mineral rights to Marathon Oil in Texas.

I’d love to hear from our readers on whether this is a viable investment vehicle and whether anyone has achieved decent returns by buying land and then convincing an oil producer to exploit it. I gather from the number of postings of individuals claiming to do this, it can’t be all that lucrative or dependable. Maybe I’m in the wrong profession.

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