Division order question


#1

Hi to all forum members!

Hopefully you are having a great year!

My wife and I have some interest in a horizontal well that is supposedly going to be drilled by Four Point Energy!

The well has been permitted as best we can tell, it is Wiederstein 442X439 in Lipscomb County Texas, we have interest in the other half section of 439 which has been leased by Four Point, it is our understanding that it will be pooled, we are guessing the well will be pooled in a 1280 unit.

Can anyone tell us where to get info as to whether or not this well has been drilled, the drilling permit was approved in January of 2018.

What can we expect in production values from this well?

Any help would be much appreciated, especially if you can direct us to a way of finding out any info on the status of this well.

Thanks to the forum for getting us all on track!

Tony White


#2

Dear Mr. White,

It’s not too early to be happy, but it is much too early to be excited.

An application for well permit is one of the very first steps in the process. A drilling permit is just part of the administrative process done prior to the drilling of the well. In Texas, I believe they go stale after 24 months. It might be 18 months. I’m not sure and don’t choose to look it up.

Mini horizontal well drillers will drill number of wells and leave them open bore and at a later date bringing a completion rig to complete them all at one time.

The short answer is that there’s no way to estimate when you may receive a division order in order to be paid on production.

The easiest way for you to monitor the well and it’s productive status is to get familiar with the intricacies of the Texas Railroad Commission website.

Congratulations on your good fortune to have a well permitted on or near your property and best of luck for future Drilling.

Warmest regards,

Buddy Cotten
Mineral Manager


#3

Thank you so much for the response! Have a great 2018!