Confusing Mineral ownership

Ownership and Title
1

I am new owner in ward county, BLK 34, SEC 117 H&TC PR Survey ABST#236.

Specifically, my division orders are for the properties called " Postelle J F" - which there are several producing vertical wells. My division order papers do not specify there is a depth limit on my ownership. The reason I mention that is that there are also 4 horizontal wells on that section (AUTOBAHN 34-117) which I do not show as an owner on. I mentioned this to the DO analyst at Callon, and it was suggested that they would have to find the title opinion and it could take some time.

Is this a strange scenario? I have had DO papers that list depth restrictions, and have not questioned being a owner in deeper wells on the property - but this one is a bit strange to me.

2

We can’t really tell you without knowing all of the details. There could be depth restrictions. This could be an NPRI and the horiztonals are “allocation wells” and don’t pass under your tract, thus you are on a “non-drillsite” tract. The operator made an error. The list goes on, but we have no idea without all of the facts.

3

Most likely scenario is that the horizontal wells are allocation wells and the lateral does not run under your tract.