Thanks again Martha. This forum has been so helpful these past three years I have been a member. I am always learning new things thanks to you seasoned professionals. It appears that my minerals in Sec 29 & 30 2N2W may get some good plays over the next few years.
I received notice today that Rimrock received approval for a multiunit horizontal well in MCCAA 1-30-19H in Sec 30, 2N2W. The approval is for the Woodford only. The Sycamore and Hinton were dismissed by the Commission. The allocation of cost and production is 41% for Sec 30 and 59% for Sec 19. Rimrock anticipates developing the south half of Sec 30 and into Sec 31. The vertical well has already been drilled but no completion info yet.
To correct just a bit. MCCAA 1-30-19H is a horizontal well-you can tell by the "H" in the name. It was spud May 30 in section 30 and went north into 19. The horizontal well has been drilled (not vertical). The final percentages in each section will be reported to the OCC and a final order will be issued with the exact percentages which might not be the permitted ones. The DO will be paid on the final ones.
Colwell 1-3130 H was permitted to spud in 31 and drillnorth into 30 to just about the surface location of the MCCAA well. I think there is a fault there. It spud Oct 22 so is not finished yet. Looks like 30 might be a little bit of it, but not much.
Thanks Martha for correcting me. Obviously I still have a lot more to learn. I got my info from the signed order from the OCC. I thought that was official. Always appreciate your input.
I could be wrong. What is the number on the order? The one I read said Horizontal. The permit is horizontal, so I assumed it was right. Anyway, looks like 30 and 31 will get horizontal wells. They do have to drill the vertical part first. Think of a bendy straw. They go down vertically, make the turn, then go horizontal, so is a combination of both.
The order number is 670149. I understand that this is a horizontal well. I assumed the vertical well was part of the MCCAA 1-30-19H. I was not aware this started in Sec 31. I do not know how multiunit horizontal wells work. Do they all originate from one well or do they have to drill new vertical wells that create new horizontal wells? This is 640 acre spacing. What does that mean?
There are three terms to become familiar with: surface location, heel and tow. Although the proportions are much different, think of your hip-joint as the surface location, your leg as the vertical portion of the well, your heel as the location of the turn from vertical to horizontal, and your toe as the end of the horizontal portion.
The surface location does not have to be on the unit, and is often on an adjoining section. The heel of the well usually turns horizontal very near the border of the first section of the MUH, and the horizontal drilling continues into the second section of the MUH.
There are an enormous amount of horizontal well images if you just Google "horizontal well" in images.
Here is one. Horizontal%20well%20image.png
Always helps to have a picture
I carry two around all the time, but the horizontal laterals are very short. :-)
Rimrock Resources received a drilling permit on November 27 for a horizontal well originating at the northwest corner of Section 30 04N 04W, running south for one mile. That seems odd since Marathon's Somers well originated in the south border of Section 31 04N 04W to run north to the north border of Section 30, but they had some trouble entering Section 30 and pulled back. Marathon had permits to drill three more wells from 31 into 30. Maybe they expired.
Rimrock has a permit 11/27/17 to spud in 30 and go north into 19 for the Morgan 1-19WH. Woodford well
Marathon has a permit for the Somers 0404 1-31-30SXH which was a Springer well. I have an old map that shows a fault, but I am not sure at what level. If it exists (doesn't show up on their preliminary Springer maps in the OCC files ) the alignment of that fault and which side the well ended up on may have something to do with that first well. 82.46% was completed in 31 and 17.54% in 30. They did have three more wells on their maps, but I don't see permits for them. They don't have an increased density case filed either. They can hold those sections in the Springer with the perfs in both.
Thanks for the correct info on the Morgan. Rimrock is already developing the site. I drove by it yesterday and made the wrong assumption as to direction.
Just received notice that Rimrock got approval to drill a well in Section 30, 2N2W.
If it is a vertical well, there is an 80 acre allowable. If it is a horizontal, it will be 640 acre.
Does anyone know the formula that is used to covert your mineral interest to a fraction? I want to double check what the division order says that it is.
Don, your acres divided by unit acres times your royalty fraction. Example: 10ac/640=.0156x3/16(.1875)=.002929
Don, Rimrock has already completed the MCCAA 1-30-19H
Michael, thank you for the formula. This is a horizontal well (the Herrin in Section 29) so I also had to multiply by the allowable percentage set forth in the OCC order.
Back to the well in Section 30, I assumed this was a new well. It was issued on Order #673124. I am waiting division papers on MCCAA 1-30-19H. It has been producing for several months. Iām still learning about this business. Just an old retired guy living the life on the Lake of the Ozarks in Missouri.
Don, the use of the phrase "the allowable percentage set forth in the OCC order" is a bit misleading. Since the well is producing oil and gas for two different units (multi-unit horizontal well), the total production is split (allocated) between the units base on the percentages fixed by the OCC. The "allocation" percentages have nothing to do with how much oil or gas the well is "allowed" to produce each month.
"Allowable" is the term used to identify the total quantity of oil and gas that a well is "allowed" to produce in a given time period. Think of it a curtailment of the production by the OCC to prevent waste.
Don, I'm not sure I understand the part about the allowable. The formula I have you should give you your net royalty which has s used to calculate how much you get paid each month.
Lake of the Ozarks a good place to be, I'm down here in hurricane country.
Frank, Thanks for your response. I was using the terminology in the order. Your part about the āallocationā is what I was trying to convey to Michael. For example. I am getting paid on the Herrin 1-32-29H and the OCC allowable is 59% for 32 and 41% for my Sec 29. So my calculation, using Michaelās formula, needs to be multiplied by the 41%. If I am wrong, please let me know. It seems to work out on the first check from Rimrock.
Sorry, I meant to use the word allocation by the OCC, not allowable.