Weld County, CO - Oil & Gas Discussion

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Comment by Jason Haack 7 hours ago

Barry, Every Barrel of oil they sell wheter now or later has you entitled to the minerals according to your lease. You will get a check for all oil sales but being in oil business i know it takes a few months to have every thing set up. All the title and deeds should all be done and divisions order is done to, now it's just about getting the DO on pay status.

Comment by Barry Songer 21 hours ago

I have leased minerals on a section that has a well that has been producing since December. I have not received a division order yet but expect one soon. When I start receiving payment will I get paid for all the oil produced since December? While the oil company is getting all the title and deed searches and other paperwork in order to distribute division orders are they still pumping oil and storing it? Selling it? Not producing? Different articles I've read have me a little confused.

Comment by Larry on May 21, 2012 at 2:35pm

Lynn

i'm a novice trying to learn the basics myself. happen to have a division order basics tutorial handy;

http://www.americanroyaltycouncil.com/Portals/_default/Skins/ARC/tu...

Comment by Jason Haack on May 21, 2012 at 2:26pm

Lynn,

A division order is how you get paid your mineral rights percentage. Commonly Operators will have whomever buys there oil production send checks directly to the royalty owners. It looks like this is the case with your lease. This is good thing. Don't waste your money on an attorney he will tell you same thing i just did but charge you $300 an hour to review docs that oil operators have been using for 100 years or more now.

Comment by Lynn Howell on May 21, 2012 at 1:54pm

We currently have producing oil interests in weld county ...Another firm just sent us a letter called "Divison Order instruction" asking us to sign with a Sunoco Partners LP....DCP Midstream is also involved. Is anyone else receiving this correspondence, or have an idea what a division order is? Perhaps we need to secure an attorney that specializes in these cases...

Comment by Hanna on May 4, 2012 at 12:12am

Our well is the DRAKE well....there are two wells on the same pad, but only one of them is ours.  It is the 14 - 15 D or some such.  It is in Section 14, 7N 67W.  I have seen the production reports, such as they are (behind) and it seems like it is 3-400 barrels.......per month I suspect, but I cannot be sure.  We are in process of getting leases signed etc.  

Comment by Jason Haack on May 3, 2012 at 11:12pm

Woops typo in last post there, Jake did about 88,000 Barrels it's first year, If you want to pm me your well name i can look it up and tell you. The only thing i can say JW is an 1/8th in a 30 year old D or J sand well is nowhere near what and 1/8th of a Niobrarra Horizontal Well will do. I don't see anything wrong with going after HBP leasehold and moving up to different formation. This is a far more proven method and going into existing well bores and cut panels and drill baby drill! The Critter Creek 02-03H well next to the Jake did 130,000 barrels first year on track for 100,000 barrels it second year so the more they drill the better the HZ and Fracs are getting. FYI the Niobrara is a psuedo shale really a Chalk and those boys are fracing with no chemicals just Water!!!! Take that EPA!!! 

Comment by r w kennedy on May 3, 2012 at 10:24pm

Many people do not realize how cheap it can be to operate a well. There are some horror stories but I think most have very little upkeep or there wouldn't be so many low producing wells and there are a huge amount of wells in the US that produce less than 10 barrels a day.

Comment by Hanna on May 3, 2012 at 10:15pm

Thanks rw....Jason, Jake well only produces 55 barrels in the whole year??  I thought it produced hundreds of barrels a day;/  I'm not sure how good, or bad our well is...I don't know if the report online is barrels per day or month;/

Comment by Jason Haack on May 3, 2012 at 9:37pm

Hi Hanna Mr. Kennedy had a pretty good explanation of pressures. We have so much oil and gas in Colorado its mind boggling and we are developing and finding better more efficient ways to extract the hydrocarbons so don't worry to much there is an operator for every formation and for all types of drilling. Because Oil is $100 per barrel even a 2 barrel a day well is economically viable, although gas is a different story it to can be produced cheaply so I know operators making millions on $2 gas. Most every well drilled has a model to be paid back in less then 18 months, look at the Jake well for example which is now not even that impressive at 55 barrels produced its first year. There are wells nearby the Jake well that have done 30% better! Sometimes wells disappoint but taking a loss is not so bad either in the oil patch. I have looked at thousands of wells in my time so far in the energy business and I can tell you I have never seen a well dry up, and I mean never.

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