Keith. of course every well is unique and there are no guarantees and there are a lot of people on this site that can give you better advice than I can. That being said I have 2.5 acres in 23-3N-4W. Newfield is drilling multi unit wells on Section 23 and 26. I think they are scheduled to drill 7-8 wells. The first well is called the Ferguson. I have a 3/16 on 2.5 acres and last months check was 102.00. My interest is in section 23 so I will not be a part of all the wells they are drilling. The well produced in March 43,385 MCF of gas 301,250 ofNGL and 4078 BBLS. I am thinking the best I can do in the future would be $300 a month. Offers are usually what someone thinks you can get on your production for the next 3 years. I am sure there will be someone that adds to my thoughts. This is an educated group but I wanted to pass along to you something that might help. Val
Val, I canât find, or recall getting anything about Newfield multi unit wells in 23 and 26. Could you tell me where in 26 they are drilling? My siblings and I have around 8 nma in 26-2-1N.
Keith, I wouldnât sell if I had that acreage. I think that down the road, they are going to come back into a lot of these horizontal wells and refrac them again. Currently only getting about 4-7% of the hydrocarbons out, so lots remain. Even if they can only get 10% out, that is about double what they are getting now. The reservoir still has them sitting there for decades to come.
Should we expect a similar royalty check ($9k - $10k) for each well that they drill in the sec16 3N 4W?
KeithâŚour friend that has 20 acres in 16 3n4w has been receiving offers to buy for as high as $18,000. an acre and he only has a 1/8 interest. We advised him not to sell because we believe he will receive much more than this after all the wells are drilled. Of course no one knows for sure how good of wells they will be but the oil company has already set a lot of tanks on location so they are expecting big things it looks like.
Keith, they may have a bit better performance due to improved frac technology since the first well was drilled. No promises, since every well is a bit different. The dollar amount will depend upon the price of oil and gas. The first few year or two will be higher performance and then it will drop quickly down to a low but steady rate for decades. The majority of the value comes in the first four years, but production can last for many years. At higher prices, even lower production can be nice money in the bank. Especially with 7-8 wells. At lower prices, even some money is better than no money. The trick is to invest the royalties from the high paying years into something else that will make money.
Went through Elmore City on highway 29 the other day and there is a drilling rig (Cactus) sitting inside the city limits on the south side of the highway (right by the highway). When coming from the west itâs just before you cross the bridge going into Elmore.
There is also a rig drilling on the north side of highway 29 I believe it was just a mile or two after you cross from Stephenâs Co. into Garvin Co. Itâs been there for a while (at least a few weeks and maybe more. Looks to be less than a mile north off the highway.
The two rigs that have been there close to the new Newfield office south off of the highway (29) are still there. The one right by the office apparently has had some trouble because the pipe has been in the derrick for about a month now I believe. There was a little less pipe in it this trip than in the two trips down there before but still there.
The new Newfield office I spoke of is in Stephens Co. just south of the highway 29 and 76 highway intersection.
Yes, itâs very helpful
If you can afford to hold onto it, 16-3N-4W is hopefully a good section to hold. But if you need to sell, I think you have a lot of negotiating power at the moment. Iâve heard of offers unsolicited offers of $24,000 per acre for 16-3N-4W (if leased at 3/16). Those are just opening offers so I imagine real purchases are going for numbers higher than that.
The are almost done drilling the new wellbores - franking next.
I just wanted to thank everyone who participates on this forum. I own mineral rights in Garvin County that have been in my family for at least 75 years. My mother was a McGalliard and grew up in Elmore City. If she was still alive, she would be 102 yrs old. About 4 years ago, I was checking around to see if there was any leasing/drilling activity in Sec 29 & 30. I discovered this website and Garvin Co. forum. I inquired about info regarding what leases were going for, etc. I received great advice regarding what to expect, not to agree to certain clauses, add certain cla;uses, etc. By using this advice and info, I was able to decline offers of $100 to $250 and acre and held out for a year and got $700 per acre. My point is, this forum is so valuable, especially to those of us who are not that knowlegeable about minerals. I know many of you are professionals and donât have any agenda for sharing your expertise and educating us ânot so smartâ people. Your advice has made a lot of people more money and less mistakes. Please keep up the great work.
Jonni, sorry it wasnât clear but that back and forth was related to offers on section 16-3N-4W, some miles west of your acreage. Hopefully the activity will generate even higher values (and offers) for you!
Marathon Oil had a hearing yesterday with OCC re: CD 201702791 plus several other cases regarding increased density in Sect 3 & 10 Township 03N Range 04W. (Watching with great anticipation)
Scanned in today Exhibit 5390451 âProduction Mapâ.
My questions for all knowledgeable and experienced folks:
If they are going back to the test well (Eubank 1-10-3XH) to drill 3 additional wells at that pad, do they shut down production for the test well while they drill?
And,
How long is production stopped?
Can anyone tell me what if anything is going on or projected to go on in Section 5 3n3w or the surrounding area. A friend called and said she received an offer to purchase 10 of her acres for a total of $32,500. Isnât that a low ball offer for purchasing in that area?
Casillas has just filed quite a few cases in 6, 7, 17, 18, 19, 20, 26, 35, so very busy. That is probably why she got an offer. Section 6&7 share a multi unit Woodford well on the far east side and a multi unit Miss well on the west side. Room for plenty more. 6 has about five directional wells already. That offer sounds really low at only $3250/ac.
Jackie, They donât usually shut them in for long. They just donât want an active well pulling on the frac water from a nearby and pulling into the good well and ruining it. They want the new well to produce its own frac water to clean it up.
JackieâŚI believe someone told us back when CR and Newfield were drilling all the wells in 2n 4w that they found if they shut in the production of an exiting well while they fraced the new ones it didnât kill the production on the existing well like it was doing when they didnât shut them in while fracing.
Marvin, FWIW, my sister-in-law go $5300+/acre last November from Echo in 2n 4N 4W (1/8th). Health issues - the Casillas came calling. I still have my half.
Sorry, â1â disappeared - it was Section 21 4N 4W
Thanks to M Barnes for his reply.