I’m trying to find out any information about a Continental well called Fire Canyon Ranch. It was drilled and site set up the. Was told there was a “down hole” problem. It was never completed and now the lease has run out. How long do they have to complete? It’s been almost 2 years in February2019. Thank you!
I am moving this over to the Blaine County, OK area. If you add your Section, Township and Range, you may get more help.
Yes the legal on above question are SW/4 of sec32-13-12. Blaine County
Jean, Go back and read your lease. Does it have a continuous activity clause? Those usually have a timeframe of 90-180 days.
Contact Continental and see what their plans are and if they are in that time frame. Ask for a release of lease and see what happens. Have they paid you a shut in payment?
I shut in payment has been paid. When I have called in the past their response is that it is Completeling…I’ll contact again. It looks like lease says 90 days but they move stuff in and out… shady?
An shut in payment has not been paid. I’m not sure why that showed up as that on above response.
The usual time frame for a two section well is about four-five months to drill and complete. You don’t get paid until about six months after first sales. The reason that I asked about the continuous operations clause is that they need to keep moving on a well if there is a problem in order to hold a lease. It doesn’t go into the secondary term of “held by production” without production.
If they have done absolutely nothing for over 90 days and a year past the last real “operation”, then they need to explain it. Either pay a shut in payment (which means that there had to be production capacity to begin with) or release the lease. Sometimes, there is a good reason such as drilling a whole lot of wells in a section and then fracking them all at the same time. That can delay the payments.
If they are completing, then give them about five months and contact them again if you don’t have a division order.
I do not see the well as active on the Gross Production Tax site yet.
Thanks so much for your information. You don’t know how much it means to talk to someone who will answer questions!! Thanks again!