I have a question about horizontal well drilling. I have 2 wells that are located at
SESW 20-160N-93W in Burke County. One well goes North and goes through about 80 acres of my land, the 2nd well, goes South and is about 500 ft on my land. Question is, do I get any royalties from the well going south, or is there any compensation?
Thank you very much. I really enjoy reading this forum. I am new to this as the have just started to produce.
Any information would be great. Oasis is the company, and was also wondering if anybody has any information on this company.
Thanks
Rog
Roger:
If your mineral acreage is in the spacing unit of the well running South, you will recieve royalties.
Roger, the well heading south although the surface location is in your spacing it probably isn't draining your oil. The operator was probably just saving money with only having one pad, road, gathering line and so forth. I know the well head is a considerable disyance inside your spacing but the head isn'r in the oil producing zone. When you think about them drilling down 10,000 feet, drilling down at the very slight angle necessary to get the working part of the wellbore 250 feet on the opposite side of the line from your spacing would be no great task. Even if they didn't reach 250 feet on the other side, all they would have to do is not perforate that part of the wellbore and your property and minerals should be safe. It might be tempting to get another 500 feet of wellbore into production but then again, the penalty for being caught would probably outweigh the benefit.
As an operator I think Oasis is average, which by any other standard means poor. No great scandals, but I know of a lady whom they didn't pay for over a year after first sales. Oasis claimed she had a title problem, trying to get out of paying considerable interest. She didn't do anything to cure her title and Oasis started paying royalty anyway, which to me means she didn't have a title problem, Oasis knew it, and Oasis didn't want any more interest to mount up. 1.5% interest a month isn't too bad, but it adds up to 18% a year and they were into the second year already. As I said, I consider Oasis to be the standard-poor operator. If my title were marketable / good, I would enquire when they were going to pay me 5 months after first sales. Good luck.
Thank you rw. I really appreciate your response. I didn't know how that worked. I know that they wanted to use my land for that pad, but wasn't sure about the royalties, if I would get any. Hopefully, Oasis won't have any problem with my title. thanks RW.
r w kennedy said:
Roger, the well heading south although the surface location is in your spacing it probably isn't draining your oil. The operator was probably just saving money with only having one pad, road, gathering line and so forth. I know the well head is a considerable disyance inside your spacing but the head isn'r in the oil producing zone. When you think about them drilling down 10,000 feet, drilling down at the very slight angle necessary to get the working part of the wellbore 250 feet on the opposite side of the line from your spacing would be no great task. Even if they didn't reach 250 feet on the other side, all they would have to do is not perforate that part of the wellbore and your property and minerals should be safe. It might be tempting to get another 500 feet of wellbore into production but then again, the penalty for being caught would probably outweigh the benefit.
As an operator I think Oasis is average, which by any other standard means poor. No great scandals, but I know of a lady whom they didn't pay for over a year after first sales. Oasis claimed she had a title problem, trying to get out of paying considerable interest. She didn't do anything to cure her title and Oasis started paying royalty anyway, which to me means she didn't have a title problem, Oasis knew it, and Oasis didn't want any more interest to mount up. 1.5% interest a month isn't too bad, but it adds up to 18% a year and they were into the second year already. As I said, I consider Oasis to be the standard-poor operator. If my title were marketable / good, I would enquire when they were going to pay me 5 months after first sales. Good luck.
Roger, hopefully it won't be long and your well will be producing. It is DRL [drilling] status right now which usually means it's awaiting fracking or is being fracked. Good luck with your well.
Thank you
r w kennedy said:
Roger, hopefully it won't be long and your well will be producing. It is DRL [drilling] status right now which usually means it's awaiting fracking or is being fracked. Good luck with your well.