Tom, The well I have interest in is producing but we are not yet receiving royaltys, so thats the extent of my experience. I’m thinking the communitization has to do with Div. orders. The pooling order was done before drilling started. The initial production was as Tim says below and I think he could be right about additional wells. Don’t try to use that ratio to put a value on your production. One bbl. oil=$105 18800cft. gas=$45
I see on the Mineral Owners website that they are “now drilling” both sections 28,29 14N 9W. But I do not see any new spacing orders or drilling permits on the Oklahoma well info website. Think this is an error? Or just reporting lag? Which one would be a more reliable source to you guys?
Francis, what mineral owner site did you go to?
Francis i believe it is a reporting lag i do not see any new wells for either 28 or 29 except they drilled from 28 into 21 and 29 into 20. Devon would have to ask for increase density to drill other wells in either 28 or 29. I know from experience that the owners registry is showing about 5 to 8 wells that are drilling now in Grady that have been completed for awhile, they are getting there completionrecord from the Corp, comm. and the oil companies are not reporting on time since there is very litle fine for not reporting.
Francis, Devon drilled a well in the southwest corner of section 28 14 9 they recently Fracked and flowed back, I also noticed today they were putting on a well head.
The Oklahoma Mineral Owners Registry Leon. I did get ahold of them and they posted inaccurate information. It is as Richard said, they are drilling on section 29 but into section 20. I was not aware that they could do that. Section 20 owners do not loose an inch of top ground but gain all the benefits of the minerals beneath. So what if they decided to drill every surrounding section from ours? Pretty bogus if you ask me.
I really have to thank my late grandmother Jean Hampton for having the sense to never sell these rights. She left these to me as a kind gesture and I currently receive a small 35/month royalty on some other wells. But, this well was completely unexpected!
Steve If I was 99 and had no heirs, I might sale. What interest do you have? Are you keeping up with what is going on around you? Things are just getting started in McClain Co. Have you leased you interest yet? If not I would take my time, they are just getting started. We have interest in tracks in McClain Co. But have been busy watching Grady, Garvin, Stephens. My son is getting ready to start plotting the activity in McClain Co. so I’ll try to update you.
Ron, Take a minute to read the previous posts. They have been drilling the well for a week! Sounds like Steve is on top of things.
A well we are under started 12-28-11, still not producing. And then 6 months? Nov.?
I have recently received 2 more offers to buy my mineral rights. When I say offers, they do not include how much they want to pay but, do you want to sell your mineral rights from Cheryl DeLay and Cosmo Investments. I know they would expect to make money on their purchase, so why would anyone actually sell their mineral rights to them?
If a company is starting to drill on your minerals in a new play wouldn’t you want to keep those mineral rights forever? btw this is in MCClain county sec 9 town 6 north range 3 west
Steve, The only reason I can think of to sell is just if you are desperate for money. It looks like Newfield will be drilling that section soon, so I imagine you have already leased or been pooled. Our well was completed in Feb. but I’m still getting offers to buy. Let us know how your well turns out, we got a pretty good one in Stephens Co. 17-2N/4w
Steve, Did you know they have been drilling for about a week. Newfield spud the Danni 1H-9 on 3-31-12.
Thanks Don, well said.
yeah. I saw that Monday when OCC scanned it in, needless to say it piqued my interest. So how long until I get a royalty…cut to the chase…lol…I figure 4-6 weeks until completion and then division orders…but I don’t know how many months out until I could receive a royalty check.
Operators have 180 days from first production to pay royalty owners. After that, payments normally trail production by 60-90 days. The amount of time they have to pay is controlled by statute in Oklahoma. The law is called the Production Revenue Standards Act. If they don’t pay within the time allowed by the law, they owe 6-12% interest (depending on whether or not there are title issues that are preventing payment).
Michael I didn’t mean to said he wasn’t. But I started my response an was called away, by the time I got back to finish he already had a wealth of information. And I also type slow.
Thanks for sharing your experiences. I’ve learned a lot about the time frame from spudding until production. And I didn’t know about the fracking delay. I would like to think that the mid-continent newfield team would be timely in the fracking, because they have basically been pulling out of the gulf and eastern oklahoma natural gas plays and re-branding themselves as oil and liquid gas drillers. Because their stock has been murdered. management will be a key factor, they are saying on company news by summer and those kind of comments are pretty telling and forward. McClain seems to be the big secret that is coming out in this play because it’s not the traditional cana - woodford topographic. so if they are on to something and can land grab early like my lease last august, they can march in and start this new play without a bidding war. which is exactly what I think is going on…I just know these 3 oil formations are tight shale 120 feet or so each, which doesn’t mean anything to me because I’m not an engineer…(I feel like doc mccoy on star trek) Now I see why the oil business is crazy.
I think you will see more of this in McClain Co. Look at CD# 201105614. Some one good with words might tell everyone what is going on but I’m not and I type slow.
Larry-
I am not that familiar with the codes in Oklahoma. I do know that the gas can fall into different price ranges based on the btu in the gas. One of the codes is probably for condensate and even then, condensate can vary on it’s saturatiuon of oil and therefore there can be different codes for that. You could see this difference in consensate prices from well to well. The oil and dry gas are pretty straight forward in seeing what the production stream got for them. The fourth code will have to come from someone more familiar with it, I don’t know.
If you can, will you tell us what the rate of production was the sixth month after first production. My guess, based on a decline curve I have from Cimerex, is that it was down from 30 to 40% from first production. I would be pleased with a 20% drop and not surprised at a 50% drop.
To all concerned-These declining production rates are to be expected and those starting to collect royalties need to keep this in mind as far as finiancial planning is conserned.