Hello. we have mineral interests were Continental has started a project in Carter County in Section 23 and I believe a unitizatuon was approved with Section 14. The wells were spudded in May and production appears poor however it appears wells continue to be spudded in an unrelated Section 25. I am not sure why there have only been two wells drilled (SEAPORT 1-14-23XHW and HIGH LINE 1-11-2XHW) and no mention of the project was discussed in their last earnings call. Their continues to be drilling in Section 25 and I am concerned it may be milk shaking potential from this new project including 23. Any way to find out if the value of my lease is being destroyed?
Also, the one ck received has our royalty broken out into 3 royalty interests which appears to not make sense if unitized.
Any help would be appreciated to figure out this lease.
The Seaport 1-14-23XHW well is for Sections 14 & 23. It is not unitized. Only a multi-section production unit.
The Highline 1-11-2XHW well is for Sections 2 & 11. It is not unitized. Only a multi-section production unit.
The Essex 1-12-13-24XHW is for Sections 12, 13 & 25. It is not unitized. Only multi-section production unit.
Your lease is not being destroyed by any of the offset wells. Without seeing your royalty statement, we can’t discern what the 3 royalty categories you are speaking about.
All of these wells are for the Woodford formation. Continental doesn’t speak about wells in their earnings calls as they figured out that brought in the competition. This is not really a project and only wells being drilled. In time, I’m sure there will be more wells drilled in each section, not only for the Woodford formation but possibly for other formations as well.
Hope this helps.
Thanks for helping me understand the coding of the wells.
I used the the word project as that is the word Continental used in correspondence.
The check stub has the interest divided into R101, R102 and R103. Combined, they total the amount CLR states is my royalty interest.
Regarding royalty, I saw the September production for Seaport which was 2,160 barrels of oil and 77,147 mcf of gas. The initial average per well production for the Woodford wells, are each matching that of Springboard, are around 1,500 BOED. The September production statement for Seaport was 2,160 oil and 77,147 mcf or 2,173 of BOE for the month or roughly 72 BOED.
Is anyone seeing anything different. This would be the 4th month since spudding. Does this appear usual? I understand conventional wells so I am out of depths here.
Those codes are the product codes for oil, gas and liquids. There is a key on the statement to tell which one is which. You will note that they each have a different measuring unit and price associated.