A geological and engineering analysis indicates 3,723 MMCF of original recoverable gas in place and 1,477 MBO of original oil in place in Section 8, Township 8 North, Range 4 West, McClain County, OK. EOG has sought legal relief for 3 additional wells of the W/2 of Section 8-8N-4W, McClain County, OK.
How can I determine the value of what I should receive from this if I own mineral rights for 5 acres in the 320-acre horizontal unit? I am new to this and it is very confusing!
You would need to know if 320 is the total spacing for the unit (it could be 640 acres for example) and also your royalty percentage from the lease that holds your interest - might be 1/8th, 3/16ths or 1/4.
Other things can lower your revenue such as deductions from your check. Production (Severance) tax is normal but you may have items such as transportation charges, expecially on gas production, depending on the wording of your lease.
Moved this over to McClain County, OK
Thanks, that is helpful!
EOG’s application 201801879 was for 320 acre spacing - they are only focusing on the w/2 of Section 8 and Section 17. The total unit would be 640 (320 in each section). They permitted 4 long laterals (10,000’ wells) targeting the Woodford, one of the four, the “Wilson 0817 1H” should already be drilled and according to their app, it should be producing. Although there are no completion reports filed for the well, and I do not see any test data.
They are essentially estimating 355 MBO and 710 MMcf per well, so the 4 wells combined would be 1,420 Mbo and 2,840 MMcf of gas.
Your revenue interest would be approximately 5/320 * royalty rate
There are some nice woodford wells in that area, but it doesn’t appear that there hasn’t been any density drilling yet
Wonder when we will start getting checks?
Lucky you! I only own .625 acre. There are offers of up to 15k per net mineral acre so that will give you an idea.
It takes about four-five months to drill and complete a two section well. Maybe more if increased density depending upon how many rigs are working. They tend to frack all of them at the end in a zipper frac. Division Orders come out about five months after first sales. Statutory payments are required by six months after first sales.
Ok, First Sales were in August so guess I have a few months to go! thanks
Depends on what language of your lease. Are you even leased? If so what is your royalty rate? A lot of unknowns here. What is the total acres of the lease that your 5 acres is on? Royalties rate? Is there any post I can give you an basic example to help find your total production interested(TPI)
I am leased with OEG resources. 3 yr with 2 yr extension. 3yr ends this Dec. Wondering if I get a bonus with the extension. Anyway, I own .625 mineral acre with 3/16 royalty. Thats all the info I know. thanks
Your original lease should have the terms of the extension. If not, then I believe it is usually the original bonus if any. Some folks demand original plus 50%. Some do double. If you don’t negotiate it at the beginning, you cannot go back and do it.
If they began drilling before the end of you first three year term, then the two year extension will not apply.
Did you read my post? “I am leased with OEG resources. 3 yr with 2 yr extension. 3yr ends this Dec. Wondering if I get a bonus with the extension. Anyway, I own .625 mineral acre with 3/16 royalty. Thats all the info I know.”
Are you leased in 8-8N-4W? If so, then you will not get a an option to extend since the wells were spudded before the end of your lease. If you are in a different section, then the answer may be different depending upon any wells in your section.