Hello again Martha. Section 4-5-5 was reported as completed yesterday. This is the other part of the well which includes 10-5N-5W has the name Black Mesa. Are they reporting them separately? It was supposed to be one horizontal?
Those are two completely different wells. If you will notice, Great Plains 0505 4-9 1MH starts in section 4 and ends in section 9. The API number is 35051247090001. The 0001 at the end implies a revision from the original permit. In vertical holes, that used to mean a sidetrack. The well is a Mississippian well (MH). The well will pay on sections 4 & 9 (see the naming)
Black Mesa 0505 3-10 1WH also has a surface location in section 4 but the well deviates and goes into sections 3 and 10 (see the naming) and is a Woodford well. The API is 35051246550001. The Black Mesa well has also been completed but the completion report is not listed yet. Active date 2-6-20 which is listed on the OTC tax site. Gross Production
Thank you Martha! Somehow the completion date passed by me.
The first sales date is near the “active” date on the OTC site. I look there when I cannot find a completion report. The report eventually comes out about four months after the completion. Division Orders should come out about five months after the first sales date.
The completion report is on the OCC site. It show the completion idate of 2/6/20, sold to Iron Horse
Make that it shows. How can this be?
Great Plains is found in 0405N05W http://imaging.occeweb.com/OG/Well%20Records/1DDAD767.pdf
Black Mesa- posted since I looked earlier -also in 0405N05W http://imaging.occeweb.com/OG/Well%20Records/1DDAD7E4.pdf
Not exactly a great well but I will l take it. Thanks for the help.
Martha, what is the formula for figuring income from a well? I had it bookmarked but can’t find it. Thanks.
net acres/actual spacing acres x royalty x % perforations in your section if multi unit well.
The reason I say “actual spacing acres” is that the sections on the northern and western tier of a township are not usually a pure 640 acres.
You can look up their actual acreage at the Bureau of Land Management site. Search - BLM GLO Records Search Documents>Search Documents by Type>LSR> Oklahoma>County> Type in the township and range and pick your meridian and Master Title plat. You can zoom in to find your section and total up the irregular lots and the regular parts.
Martha why would I question the net acres now? It was when 10.5 when Anadarko drilled on it in 1994 and it is still that.
Grace- how do you Anadarko was right?
Just for fun I looked my minerals up in the Bureau of Land Management. It shows Section 10 as a square. There is some writing but none I could read. So, this does not show the actual acres I own but just the whole of Section 10 (and other square sections), is that correct? Where does it show where Section 10 is portioned off?
If you want to have a map showing ownership in section 10 you will probably need to make it yourself— unless you can find someone else who has done it. Sections are about the smallest divisions that have public maps. However, if your section 10 has been platted then you can look at the plat maps.
Making your own map is easy. Just Draw a square divide it into quarters, and keep doing that to the quarters until you can use your Mineral/Land description to locate your interest.
West is to the left, North is on top
FYI A section is 640 a…;. N/2 of a section is 320a; w/2 of N/2 ( or NW4 ) is 160a ; and so on and so forth
Pretty easy once you do it yourself… also google Land Description diagram for examples
The GLO map will not show the portions. You can figure it out from your description in the deed. It will have something like the NW4 NW4 SW4 10-5N-5W. Or you will have a percentage based upon the fractionation due to a will or trust document. Such as 1/4th of the NW4. Since you said you had 10.5 acres, it has probably gone through several generations before coming to you. Hint on reading the descriptions. Read them from right to left. For the example above, the SW4 is 160 acres, then the NW4 would be 40 acres (160/4) and the NW4 of that would be 10 acres (40/4). S-T-R Legal Land Descriptions in OK_Kletke-1.pdf (59.7 KB)
The final completion orders will give the exact percentage based upon the survey of the well and the perforations.
For example, if you have 10.5 acres at 3/16ths royalty and the split is truly 50/50, then your decimal would be 10.5/640 x .1875 x .50=0.00153809.
Thank you Martha. The split is not 50/50. They have allocated costs and production of 59.2784% to Section 3 and 40.7216% to Section 10. Bummer. They are saying the Woodford source of supply, which is the target formation, is approximately the same thickness and quality across each of the affected units. Length of completion interval for Section 3 is 4,929’ and for 10 it is 3,386’
I still do not see the reason they placed the well on Section 4. Is length of completion interval the length a line picks up oil? I am probably not understanding this but sounds rather arbitrariary as to where you place the lines and the longer the line the more percentage you get?
l
Only the surface location is in Section 4. The wellbore does not encounter the Woodford until it is under section 3. I don’t know what you mean by the use of the term line? Each sections percentage of the total is determined by the total footage of wellbore perforations for each section divided by the total perforations overall. Hope this helps.
It is quite common to put the surface location in a contiguous section. One reason is to use the same pad for multiple wells as in this case. More environmentally conscious to use one pad instead of two or more. Another reason is that the wells are drilled vertically and then they have to have room to make the turn to horizontal and they do not want to “waste” the turn room on the sections where they want to produce. Visualize a bendy straw. The vertical and the bend will be in the section next door and the long horizontal in the two sections that they want to produce. They cannot perforate right at the lease line, so they leave an easement before they start the perfs. Mineral owners are paid on the percentage of perforations in their section.
Thanks for explaining it, Martha.
Martha, is this calculation correct based on $25.00/Barrel of oil and $1.88 natural gas, given 285 barrels of oil per day and 706 of gas? Perforation is 40.7216 and royalty of 3/16.
706 x 1.88 x 30 Days/Mo = $39,818.40 x 0.1252666 (perforation) = $4,775.66/per month gas
285 x $25.00 x 30 Days/Mo = $213,750 x 0.1252666 (perforation) = $26,775.00/per month oil