Lignite oil field

Hello,

We own mineral rights in Township 162, Range 91, section 15. When I look at the GIS map server I notice a horizontal leg running through the section. Is this producing? Also, there is a well called Benge Unit 1. Is this a vertical well or is it part of the horizontal leg?

Thank you very much,

Alex

It's actually a horizontal well with two legs. If you go to the GIS map in the NDIC site you can click on the map and zoom in for geater detail. 47,136 barrels oil as of March this year. Madison formation well drilled in 2005.

Thank you, I'll try that.

One more question--if our mineral rights are in the SW 1/4 are we entitled to royalty payments? We haven't leased our rights.

Again, many thanks.

r w kennedy said:

It's actually a horizontal well with two legs. If you go to the GIS map in the NDIC site you can click on the map and zoom in for geater detail. 47,136 barrels oil as of March this year. Madison formation well drilled in 2005.

Alex, that is a good question. It looks like the existing well is confined to the east half of both sections. You may have to call the NDIC [their number is on their home page] to find out how that well is spaced. I did see that there is a permitted location just west of the existing well but there is no drilling permit yet.

So, depending on the spacing, it's possible that only the eastern half gets royalties?

I'll call the NDIC tomorrow. Thanks for that advice.



r w kennedy said:

Alex, that is a good question. It looks like the existing well is confined to the east half of both sections. You may have to call the NDIC [their number is on their home page] to find out how that well is spaced. I did see that there is a permitted location just west of the existing well but there is no drilling permit yet.

I think it likely if they didn't try to lease those minerals of yours that only the east half is collecting royalty. It certainly can't hurt to make sure. If it were a Bakken well, I would say that it was virtually certain that they owe you royalty, but it's a Madison formation well.