Hello, I am wondering how long oil wells tend to last in north dakota. also, wondering if the royalty payments of 17 per cent are from the current price of seventy dollars for bakken shale oil, or if the companies use a different formula. my land is on the drilling list... any comments welcome. thank you, zoey
Zoey:
It's difficult to answer the longivity of wells since each formation and different geographical areas play a major role in this matter. I have heard of some wells still producing after 30 years while others were plugged in less than 10 years. Of course, I'm referring to the old verticle wells as the new horizontal wells are mainly too current to make an analysis. If you're referring to the Bakken/Three Forks horizontal wells, I have heard figures of 15 to 20 years but these are just guesses. The % royalty would be your dollar amount on the production sold but from this you would have various expenses (severence taxes, transportation expenses, etc.) from which are finally paid. Then of course, your own taxes which are paid on the earnings. If you are about to begin recieving royalty checks, you should study up on these deductions and some good information is available on this forum and other websites. Good luck and hope you get a great well(s).
We have a horizonal well in 143 102 and it is still doing well hope this helps
Hi, Gary, mine is township 162N, range 98W, section 17, on welling schedule as I said. (what are the key numbers I use to shorten the description? How long has yours been going? how many years? has the production per day gone down? I feel asking how many barrels per day is perhaps something you may or may not want to share, up to you. Is the formula for your royality 17 per cent of barrels per day times what price is the oil now? I don't own the whole section, but enough to make a difference. thank you very much, Zoey
Hello, Charles, didn't see your email at first...various expenses - severance, transportation... hmm do these add up at A LOt? I know the average well is about 250 barrels per day..if I owned all of the section, which I do not, but if I did how much could you guestimate 250 barrels a day would give me, before taxes, but considering severance, transportation, etc? trying to look at this realistically, knowing production could actually be 40 barrels a day to over 600. I do have a good feeling about the well, it will be a horizontalone. Truly, thank you so much. Zoey
Zoey Smith said:
Hi, Gary, mine is township 162N, range 98W, section 17, on welling schedule as I said. (what are the key numbers I use to shorten the description? How long has yours been going? how many years? has the production per day gone down? I feel asking how many barrels per day is perhaps something you may or may not want to share, up to you. Is the formula for your royality 17 per cent of barrels per day times what price is the oil now? I don't own the whole section, but enough to make a difference. thank you very much, Zoey
call me @608 934 5418 and i'll give you info.
Zoey:
These expenses, severence tax/transportation, etc. does make impact on the royalty check as does when the tax man arrives in April. Keep in mind, the decline curve in production on some wells are more rapid than others and some wonder why their checks begin to get smaller as time goes on and these pesky expenses don't help matters any. In regards to the 250 bopd well question, it depends on the your net mineral acreage in the unit, the price of oil per barrel and your % royalty in the well. For instance, if the unit is 1280 acres, you have 250 net mineral acres, the price of oil is $80/bbl, you have 20% royalty then your take would be about $781/day. From this amount, the various deductions, severence and transportation, etc. will be taken. You can negotiate a lease whereas the transportation charges will be exempt but the operator usually gets to you on the % royalty amount as they will want to settle for say 15% instead of 20%. This is just an example, but remember, transportation plays a major factor in the Williston Basin area. Hope this helps.
gary speckman said:
Zoey Smith said:Hi, Gary, mine is township 162N, range 98W, section 17, on welling schedule as I said. (what are the key numbers I use to shorten the description? How long has yours been going? how many years? has the production per day gone down? I feel asking how many barrels per day is perhaps something you may or may not want to share, up to you. Is the formula for your royality 17 per cent of barrels per day times what price is the oil now? I don't own the whole section, but enough to make a difference. thank you very much, Zoey
call me @608 934 5418 and i'll give you info.
charles s mallory said:
Zoey:
These expenses, severence tax/transportation, etc. does make impact on the royalty check as does when the tax man arrives in April. Keep in mind, the decline curve in production on some wells are more rapid than others and some wonder why their checks begin to get smaller as time goes on and these pesky expenses don't help matters any. In regards to the 250 bopd well question, it depends on the your net mineral acreage in the unit, the price of oil per barrel and your % royalty in the well. For instance, if the unit is 1280 acres, you have 250 net mineral acres, the price of oil is $80/bbl, you have 20% royalty then your take would be about $781/day. From this amount, the various deductions, severence and transportation, etc. will be taken. You can negotiate a lease whereas the transportation charges will be exempt but the operator usually gets to you on the % royalty amount as they will want to settle for say 15% instead of 20%. This is just an example, but remember, transportation plays a major factor in the Williston Basin area. Hope this helps.
gary speckman said:
Zoey Smith said:Hi, Gary, mine is township 162N, range 98W, section 17, on welling schedule as I said. (what are the key numbers I use to shorten the description? How long has yours been going? how many years? has the production per day gone down? I feel asking how many barrels per day is perhaps something you may or may not want to share, up to you. Is the formula for your royality 17 per cent of barrels per day times what price is the oil now? I don't own the whole section, but enough to make a difference. thank you very much, Zoey
call me @608 934 5418 and i'll give you info.