The Michigan Basin is a roughly circular structural basin centered on the Lower Peninsula of Michigan, extending into parts of Ontario, Ohio, Indiana, and Wisconsin. The basin has produced oil and gas since the 1920s and remains an active, if modest, producing region. Natural gas production — particularly from the Antrim Shale — has been the primary driver of mineral value in the basin for the past three decades. We buy mineral rights, royalty interests, NPRI, and ORRI across the Michigan Basin.
Approximate location of the Michigan Basin shown in tan
The Michigan Basin is filled with up to 16,000 feet of Paleozoic sediments arranged in a concentric "bullseye" pattern. The Antrim Shale (Devonian age) is the most important current productive formation — it is a naturally fractured organic-rich shale that produces biogenic natural gas from depths of 600 to 2,200 feet. The Antrim was one of the first commercially successful shale gas plays in the United States, predating the Barnett Shale. Deeper formations including the Niagaran Reef trend (Silurian age pinnacle reefs that trap oil at 3,000 to 6,000 feet), the Traverse Formation, and the Dundee Limestone have historically produced significant oil. The Collingwood Shale and Utica Shale at greater depths have attracted some unconventional exploration interest.
The Michigan Basin is operated primarily by small to mid-size independents. Muskegon Development Company, West Bay Exploration, and Merit Energy are among the more active companies. Encana (now Ovintiv) previously held a large Antrim Shale position but has divested most of its Michigan acreage. The operator base is smaller and more local than in the major shale plays, with many family-owned companies that have operated in Michigan for decades.
Michigan Basin mineral values vary by formation and production type. Antrim Shale gas minerals are valued based on current gas production, remaining well life, and natural gas prices. Niagaran Reef oil production can support higher valuations due to the higher commodity value of oil and stronger future income streams, though the small areal extent of individual reefs limits the total acreage in production. Michigan's severance tax rate is a consideration that affects net royalty income. Key factors include the producing formation, well count, production decline rate, and proximity to pipeline infrastructure.
Additional counties we cover within the Michigan Basin, sorted by recent oil and gas activity:
The Antrim Shale is a Devonian-age organic-rich shale that produces biogenic natural gas (gas generated by microbial activity rather than thermal maturation). It is the most prolific formation in the Michigan Basin, with over 10,000 wells drilled since the late 1980s. Antrim wells are relatively shallow (600 to 2,200 feet) and produce gas at modest but long-lived rates. The Antrim was one of the earliest commercially successful shale gas plays in the United States.
The Niagaran Reef trend consists of Silurian-age pinnacle reefs — ancient coral reef structures that trap oil and gas at depths of 3,000 to 6,000 feet. These reefs are prolific but small in areal extent (typically 40 to 160 acres each). When a reef is hit, it can produce significant oil volumes; when missed, the well is dry. This exploration risk is reflected in mineral valuations for tracts in the Niagaran Reef trend.
Michigan imposes a severance tax of 6.6% on natural gas and 4% on oil production. This is higher than some major producing states (Texas charges 4.6% on gas and 4.6% on oil). The higher severance tax reduces net royalty income and is factored into mineral valuations. However, Michigan's relatively low drilling costs for shallow formations partially offset the tax impact.