Activity in 2n2w

Has anyone heard if there has been any activity in 2n2w? I have 80 net acres in Sec 29 & 30. I have been receiving legal notices regarding horizontal drilling in 30. If I understand the notices, OK Oil Gas Comm has approved it. Don’t know if I will be affected. Thanks for any comments.

Section 29 is a 640-acre unit for the multiunit horizontal well drilled by Rimrock--the Herrin 1-32-29H.

Hi Don, yes there is drilling in the area by Rimrock resources. I have been doing some leasing and buying in the area. It appears you have mineral interest in Section 30 that is probably held by an old lease. Originally they were going to drill the horizontal in Sections 19 and 30, but there is a new application asking for the drilling to be in sections 30 and 31. You will not receive any bonus money due to being held by an older lease, but you will receive payments if/when the well is up and running. I own some minerals in Section 19, so if they are changing the spacing from 19 to 31 I won't see anything from the drilling.

Rimrock has shown they have a lot of money resources, but I have not seen any production reports that show that they can drill a good well. Hopefully you will see some $$$ off of their well no matter what the spacing is.

Darla is close to the courthouse, so she might know something different. But it appears you leased both Sections to Ceja in 2015:

  • S30 T2N R2W S2 N2 SE
  • S30 T2N R2W NE NE SE
  • S29 T2N R2W NW SW

I was just going by the fact that you were not listed on the pooling you were leased. Glad it is a more current lease. Ceja sold their leases to Rimrock.

Darla, didn't Rimrock also buy some of Merits production around here or was it Samson's stuff they bought?

"I was just going by the fact that you were not listed on the pooling order..."

Darla, you are such an optimist to think think the pooling order is accurate. :-)

Don...I'm thinking one of those rigs I told about seeing over toward Elmore City would be around 2n2w wouldn't they? That one right by the highway 29 was inside the Elmore City City limits on the south side of the highway and the other was on the north side of the highway but west about 6 or 7 miles but before you get to the Stephens/Garvin Co. line. The latter one was somewhere close to the Williams well that they drilled a few years ago or pretty close to the Studdard well..I believe it was closer to the Williams.

Yes they did buy Merits. That is one of the reasons I say they have money to

"...That one right by the highway 29 was inside the Elmore City City limits on the south side of the highway..." That rig is drilling North into Sections 16 and 21--the John Kent Well.

As far as I know, none of the Rimrock wells have been fraced yet. They appear to be making pipeline connections so they can flowback into the lines when they do frac the wells.

Don, Sections 29 and the North half of 32 are being spaced together, so you should be getting royalties on it when it is drilled. It was pooled in December, but the spacing has been continued to July.

Don, go to the OCC Imaging Web Application, and under "OAP Orders..." look at the following order Nos:

657601 640 spacing Sec 32

658678 pooling Sec 32

647469 640 spacing Sec 29

658677 pooling Sec 29

Darla, thanks for the info. Please educate me on spacing. Also, any info on the horizontal app on Sec 30. I believe the vertical well is McCAA 1-30-19H. My current leases expire in Feb 2018. I am a novice at this, so I do not understand about spacing and pooling and most everything else.

Frank, thanks for the info. I went to the occ website for the above info you referenced. It appears I would have received $750 plus 3/16ths royalty by being pooled. I leased it in Feb 2015 for $700 plus 3/16th for three years. I am not sorry, I had a use for the money at that time. Darla commented that the spacing on Sec 29 had been continued to July. Do you know what the issue is and does that mean they can't drill until that is settled? I appreciate all the info you can give me.

First, you never go broke making a profit. The choice of taking a lease bonus when it is available, or waiting for a higher bonus (pooling or leasing) is a gamble either way. I have gambled on waiting for a higher bonus and received zip. Hindsight is 20-20.

The two 640-acre spacing orders have already been entered for 29 & 32. I have no clue as to which proceeding Darla was referring to. Maybe a location exception or an increased density.

The Herrin 1-32-29H Well has already been drilled, but it appears they haven't fraced it yet. If you live in the area, you can see the well pad at the intersection of County Road N 3120 and E 1670.

I haven't been by the location for the MCCAA well (Sections 19 and 30), so I don't know what has been done there.

Thanks Frank. I live on the Lake of the Ozarks in Missouri (happily retired). Was a 33 year resident in OKC.

RimRock has a multi section horizontal well spudding in 30 and going north into 19. Permit was issued February 2017. You will receive royalties from that well in the percentage of how much of the well is perforated in 30. Looks like about 45%. The well is named MCCAA 1-30-19H. It spud May 3, 2017. It should be finished soon and put on line. So I would expect a division order in about December.

Rim Rock has another multi section well in 29. It spuds in 32 and goes north into 29. You will get royalties from that well. Looks like your percentage will be about 60%. The final percentages will be posted by the OCC when the wells are done. The well is called the Herrin 1-32-29H. It spud on January 24, 2017. It should have been done for months, but no completion report is posted yet. I am estimating that it was finished in March, so you should see a Division Order in September or so.

If you get notices, then you are usually affected. When those wells are finished, the operator will send you a final notice of the OCC determination of the percentages for each. It will also be on the Division order. Make sure they match. I have one right now that does not.

Just got back on the computer. Martha and Frank thank you for the information. I pulled the geologicals for the well they are planning in Sections 30 and 31. It looks like the entry hole will be in the SW/4 of Section 31 and run North into Section 30. Ending just South of where the entry hole for the MCCAA 1-30-19H is. Have no idea what the well name is/will be, but you will also get paid on it. Originally I had thought it was an either/or since Section 30 was named in both applications.

Thank you Martha so very much. Two questions. How can I found how many barrels of oil and/or gas the two wells you referenced above produced at completion of the vertical drilling. How will the horizontal drilling affect my lease when it expires in Feb 2018. I understand that as long as I am being paid for any production, the existing lease continues as written. What if someone, other than RimRock, wanted to drill a vertical well or explore a different sand, does that mean another lease?

Darla, thank you. I would have never known any of this until I received division orders.