We have the mineral rights to Township 162, Section 11, Range 101....looks like both our Dorado & Lido wells are in this spot...they have been drilling since March of this year and we cannot find out any info about production..prob on the confidential list...just curious, is this usually a good sign? Is it like "no news is good news?" Thank you so much as I am very new to any of this:)
oh!....i also found this off the Divide County website:
NDIC Docket for Thursday, July 26, 2012
Case No. 18291:
Notice to DISMISS rec'd 07/17/12
Application of Samson Resources Co. for an order amending the field rules
for the Blooming Prairie-Bakken Pool to create and establish two
overlapping 2560-acre spacing units comprised of Sections 1, 12, 13 and
24; and Sections 2, 11, 14 and 23, T.162N., R.98W., Divide County, ND,
authorizing the drilling of a total of not more than 14 wells on each
overlapping 2560-acre spacing unit, eliminating any tool error requirements
and such other relief as is appropriate.
the fact that this was dismissed seems like bad news.... Do you know what this usually means?
Karen, I tried to answer your questions on the other site but a virus there made my antivirus close the probram. If you only own in section 11, only the Lido is yours, even though the head of both of the wells is in your spacing, the Dorado drains a different spacing. Unfortunately, the Lido has not been a great well about 16,500 barrels in 4 months [ bear with me, I'm doing this from memory }. The dorado has done better, if memory serves about 44,000 barrels in the same timeframe. Samson may not be in any hurry to drill more wells in your area, and if that is the case it wouldn't matter if they joined all those spacings together or not. The news isn't all bad because if Samson controls all of those spacings they can request that they be formed the way they want at any time in the future. ND wants wells drilled, so the state will grant Samson more permits for the asking and a $100 fee. It may just be a few years before Samson wants to drill more wells in that area and because they have it held by production they need not hurry to drill more wells. It's just a matter of wait and see what happens. You probably will be getting a division order soon, and if you don't get the division order within 2 months or so, I would contact Samson. As just the lessor /mineral owner, there just isn't anything you can do about how/when the operator will explore and produce your minerals, they have their own schedule. Good luck in the future.
thank you r w kennedy! You have been a great help in my understanding of all this and I very much appreciate it! This doesn't seem like the best news but at least the well isn't dry?...would you have any clue as to why Samson might have "dismissed" the application for the spacing unit?
Karen, to join that much area together, Samson obviously was thinking ahead to drilling on the lines that would have been the boundaries separating the 1280 acre spacings. They still can in the future, they just have to ask for the overlapping 2560's at that time. Just because an operator requests permission to drill 7 wells does not mean that they will or have to, it just means they have the option to do so. There probably wouldn't have been an immediate change even if the 2560 spacings had been granted, each 1280 is already held by production and that is unlikely to change for a very long time.
I see, thanks so much again for your time! We'll be crossing our fingers for more wells/production!
so...I have done some more digging and bugging my mom and it looks like the Dorado is ours as well so we must have another spacing or something! One of her cousins went there this last spring when drilling started and spoke with some people (don't know who) and said they were both ours...I hope this is accurate! If so, shouldn't we have heard something from Samson or are these 2 wells not economical enough for them to continue with them? Since drilling has been going on since basically last April, it seems we would have heard about something...where is all that produced oil going? Thanks in advance for any help on this matter r w kennedy!
r w kennedy said:
Karen, I tried to answer your questions on the other site but a virus there made my antivirus close the probram. If you only own in section 11, only the Lido is yours, even though the head of both of the wells is in your spacing, the Dorado drains a different spacing. Unfortunately, the Lido has not been a great well about 16,500 barrels in 4 months [ bear with me, I'm doing this from memory }. The dorado has done better, if memory serves about 44,000 barrels in the same timeframe. Samson may not be in any hurry to drill more wells in your area, and if that is the case it wouldn't matter if they joined all those spacings together or not. The news isn't all bad because if Samson controls all of those spacings they can request that they be formed the way they want at any time in the future. ND wants wells drilled, so the state will grant Samson more permits for the asking and a $100 fee. It may just be a few years before Samson wants to drill more wells in that area and because they have it held by production they need not hurry to drill more wells. It's just a matter of wait and see what happens. You probably will be getting a division order soon, and if you don't get the division order within 2 months or so, I would contact Samson. As just the lessor /mineral owner, there just isn't anything you can do about how/when the operator will explore and produce your minerals, they have their own schedule. Good luck in the future.
Karen, Just because the wellhead sits atop the spacing in which your minerals are in does not mean that the well/production from the well are yours. One wellbore goes north into one spacing, yours in the legal description and the other wellbore goes south into and draining a different spacing. The wells already existed in 1280 spacings. If the operator had succeeded in joining the spacings then any well drilled from that point on in your larger, overlapping the 1280's, 2560 spacing would have been yours. They can't make it retroactive without picking someones pocket. Of course you could have acres in both spacings but the only legal description you gave only has minerals in one spacing. The oil produced goes into the tanks until it is sold. Once sold the oil is transported/carried away by gathering pipeline or trucked to a pipeline or rail station, from there to the purchaser. The operator is supposed to pay within 150 days of first sales or they owe you interest if the delay is not caused by title problems, many don't pay within 150 days. I looked in the wellfiles and see that the sale was authorized at the end of march. Samson, did not skimp on your well, the Lido. 30 frack stages and should have been more than enough to get a good result. You just never know exactly what you are going to get. I would contact Samson about a division order if you do not already have one, sometimes there is a title problem and the operator does not inform you that there is and you can't fix it until you know there is one. I have heard of people waiting patiently for a year after they should have had a division order who finally contacted the company to find that they needed to do a probate and a probate could easily take 6 months to two years to complete and adds that much time before the mineral owner receives their royalty payment. I hope this clears things up some. This should be correct for the one legal description you gave T-162 R-98 section 11. If you come up with more information or have other questions, I'd be glad to help if I can.