We already have two wells producing on our section in the Bakken. They are in the process of drilling three more wells. Will we get another Division Order for these wells or will they just use the first one we signed?
In our case, we received new division orders for each well that was drilled. I'm not sure if that is common place or not but it has been in our situation. We have had situations where the operator was different, even though it was on the same section, and the division order they sent had a different ownership interest than the first one we received. It's best to check it and make sure everything is correct before returning it if you decide to do that. In North Dakota, it is not a requirement to return a signed division order to receive royalty payments.
Thanks Jon. We see that they are currently drilling three more wells on the GIS Map and have been since the end of September so were just wondering if we should be looking for more division orders.
We are somewhat in the same boat that we have four wells that they are working on and have been for quite some time. I am hearing that the backlog of wells to be completed is quite extensive and that the operators are not in a huge hurry since the price of oil is so low and initial production is so high. According to the NDIC website, there were 775 wells waiting on completion in November which was a 20% increase from the month before. Part of it has to do with weather, but most of it has to do with price.
I would be looking for more division orders, but not sure of the time frame on that.
Hi Jon,
Since our last conversation, we received a new division order just last week but it lists the same two wells that we signed the first division order for. I do see that they are using the same pad and have "co-mingled" the other three wells through that pad. Is this new division order because they have started production on the new wells but are using the same pad as the first wells? It's a bit confusing.