Grady County, OK - Oil & Gas Discussion archives


#37424

Hi from John Anderson. Would appreciate some info on the

spacing changes. Section2,Township 7NorthRange 5West 69.97 acres.

They are preparing for drilling now. 642 feet was extended but what

financial gain is expected? Thanks JA


#37435

Fracking apparatus for ONE well.

It looks like they may raise the gross production tax on “legacy” wells.

House Majority Leader Jon Echols, R-Oklahoma City, said a bill will be introduced to increase the gross production tax on so-called legacy wells from 4 to 7 percent.

The wells in question are already due to go to 7 percent in July, so moving the effective date up would be a temporary solution. Echols said it would bring in an additional $40 million.

http://www.tulsaworld.com/news/government/house-passes-emergency-fu…

Here’s one definition of “legacy” wells from the EIA.

Each month, the group of newly drilled wells from the prior month is moved into the group of legacy wells, and a new group of newly drilled wells is measured. It is important to note that as the number of wells moving into the legacy group increases, the legacy production change tends to become more negative; i.e., greater total production declines from month to month.

https://www.eia.gov/petroleum/drilling/faqs.php

But “legacy” wells may, also, refer only to old producing, vertical wells drilled before 1980.

These legacy oil and gas maps detail areas where pre-1980 oil and gas activity has occurred.

http://www.acogok.org/legacy-oil-and-gas-maps-now-available/

So it depends on how they define a “legacy” well.

But it would make a big difference for Vitruvian, a company which has been great for Oklahoma and does not deserve to be penalized.

Vitruvian Exploration II LLC’s Scoop position is HBP by legacy wells it bought when looking south of the Mississippian Lime for a new play,

https://www.oilandgasinvestor.com/emerging-plays-777911

But because it will raise $40 million dollars extra by being imposed only 9 months early before July, I don’t think it only applies to old vertical wells.

That sounds like it would apply to some old horizontal wells too.

I would be sorry to see any old vertical wells penalized because they have been good for Oklahoma but the main thing is not to penalize new, horizontal wells.

Horizontal drilling is the FUTURE.

And they are too expensive to drill (up to $10 million each) to have new taxes imposed on them. (See above the fracking apparatus necessary for ONE horizontal well.)

So if the “legacy” tax must be imposed, I trust the Republican majority in the House to write a good bill that does not penalize new horizontal drilling.

And I trust they won’t let the Democrats and a few Rino Republican Rats (Republicans against Trump) like Dale Derby put in sneaky amendments that end up gutting the oil industry any way.

So, if “legacy” well taxes must come, my new slogan is:

NO GROSS PRODUCTION TAX INCREASE…except maybe on “legacy” wells!


#37835

Hutch: I am just hoping the court ordered them to stop taking deductions from leases that have no deductions clauses.


#37851

Aw, gee, George. You are just a kid.

Jim B (87)


#38339

I would send a demand email back to him. Tell him they have 30 days to remit payment or you will record an affidavit of non-payment at the county clerks office.


#38340

Hello All ! I have been recently receiving "substantial" offers to buy my mineral intersts very recently. Continental has already got a well producting in my section. Section 18-6-6. About this time last year, from watching the Corporation Commission website, it looked like CLR was about to drill again. Case #201600473. Then around 6-12-2017 the progress stopped on the webstite. So I have continued checking periodically to see if anything is happening. Yesterday, I go to my mailbox and receive a envelop from Warwick-Backus and it is for relief sought on a MultiUnit Horizontal Well and it an Amended Application. This Case # 201801311. Using this case number instead of the previous, I look on the Corporation Commision's website again and see there has been 15 documents filed since around 20 Februrary.

I am too inexpericenced to understand what is going on here, I guess. Could someone more knowledgeable than me, please help inform me? It looks like they are wanting to drill another well on us in 18/19- 6- 6. Like stated CLR already has the Ryan Express on us.

Who is this Warwick- Bacchus? Never heard of them in past 8 years until now. Anyone familiar with them or their reputation? There is a proposed map attached and from website looked like protest have happened. And why is this new company involved if CLR already has a well in our sections? And lastly, I can't determine which way they propose to drill from this time. From 18 to 19 again, or vice-versa, 19 to 18 this time. This is confusing! Thanks in advance for the tutoring and time to help us mineral owner invalids!


#38341

Frank,

Here is the Warwick Energy group website.

https://warwick-energy.com/about/

The Ryan Express was completed in the Mississippian. CLR has spacing and drilling privileges in that zone.

Looks like Warwick wants to drill in the Springer zone which is a different reservoir. The original paperwork in 201801312 says the surface location will be 330 feet from the east line and 330 feet from the south line of 19. An amended application has the surface at 330 from the north line and 1320 from the east line or 18. Won't really know until the permit comes out. Usually one company controls the whole section, but sometimes not. CLR does have a piece of the new well as do many other people/entities.

I am attaching a stratigraphic chart for OK reservoirs. Look in Region 1 on the left side. Go down to about letter B/C. The Ryan Express was drilled in the Mississippian Mayes formation. The new well is slated for the "Springer" which is above it. Actually, they are probably going for the Goddard shale which is at the bottom of the Springer larger zone.

StratChart%20for%20OK%20reservoirs.pdf

Given that you are about to have a second well with the potential for more wells in at least two reservoirs, that is why you are getting offers. I am hanging onto my acreage catty corner to you. Lots of potential for the future.


#38342

Thank You !!! once again M. Barnes ! Looking on their site, I saw this woman CEO of this company on a national news show last year - Kate Richard. I had no idea this was her company. Thanks for your insights and all you do on our County forum. Hope the manna keeps falling for us all !


#38343

A big thank you to Don Bray and M Barnes for your assistance regarding section 5-06N-06W. I have some "feet on the street" in Grady County and he was not aware of this Cagle 1-5HS. He had seen the pad but he assumed it was going into the section 32. I can't thank you enough for posting the documents. I need to learn how to go find these documents myself.


#38344

Has anyone with minerals in 6-7n-7w Grady herd anything about any activity at all. I have always assumed that 6-7-7 was a reasonably good spot in the production area, but perhaps not.

Apache seems to be the big dog in the area now, but despite my best efforts, I cant get feedback on what's going on.


#38345

Don Great pictures. 12X13 Thanks


#38346

Garland,

Apache has three cases pending at the OCC 201706753, 201706754 and 201706894. Rebellion had come in later in 2017 but their cases were just dismissed.


#38347

How about a little more GOOD NEWS!

OPEC's new price hawk Saudi Arabia seeks oil as high as $100

https://www.reuters.com/article/us-opec-oil-exclusive/exclusive-opecs-new-price-hawk-saudi-arabia-seeks-oil-as-high-as-100-sources-idUSKBN1HP1LB


#38348

HEY RICK Lowers 2, 3, 4, and 5 drilling permits FROM my 23 7n 6w

Closer to 35k now than 20k???

Total of 5 wells thru 2, 11, and 14 7n 6w

Looking Good for 23

George


#38349

Congratulations George, that is a blessing for you and your family. Hope they do something in 20 and 21-7N-6W soon. Still getting offers to buy weekly.


#38350

Thanks Rick IMO its just a matter of time till all of our 7n6w gets put into production...If 2 old wells are worth 20k 4 more new wells oughta be worth 40k...So what would 12 or more, say 16 be worth... 4 per strata

Looks like a whole new world out there for us "Horizontal Frackers"


#38351

Sec 23 not quite there yet...drilling FROM not UNDER...LOL


#38352

Cleburne 7R-12X13H Located in 4N 7W has completed the frac job.


#38353

CLR has filed for spacing to permit two more horizontal wells in 9-7-6. Looks like Sec 9 is in the middle of a horizontal that goes into Sec 4 and Sec 16. Hearing on May 7.

This may explain all the unsolicited offers I have been receiving for this section.

Might say I suspected as much.


#38354

Sylvester, your description sound exactly the same although I am in sec9 9n 7w !