The Working Interest owner has to sign very specific documents about how much they will be paying for the drilling and how much they will receive in royalties. It is on a well by well basis. How much they get depends on what is agreed to. Often, they will take an Overriding Interest as well. In general, since they take on the risk of drilling the well, they get paid more. They also have to (usually) pay their drilling portion up front. (Sometimes they can cut deals to get it taken out of their royalty.) However, they also get really nice tax deductions for being a WI owner. Too risky for my blood. Some people like the thrill.
There’s a new Texas oil shale field that few analysts are even aware of.
How big is it? Initial estimates are pointing to recoverable reserves of 30 billion barrels of oil.
According to Benjamin Shattuck, an industry analyst with Wood Mackenzie, "Operators are doing their best to keep results confidential.”
The above “secret” was clipped from Mineral Rights Newsletter of today. It is my opinion similar discoveries have been already formatted in and around Logan County. Everything is quiet now and has been for a while. But we can hear their heartbeats…LOL
USUALLY HOW LONG AFTER A WELL STARTS PRODUCING DO THEY CUT CHECKS? JACKFORK IS THE LESSEE
Devon is fracking 3 wells right now. All 3 from the same pad, sec. 7, 19N,3W. The wells are on sections 7, 17 and 18. All completed in the Woodford. I will report if I hear anything on the results.
“Reliability” in regards to what?
I received another out of state offer to buy, with a new high, and good for 45 days, and will meet or beat any other offer for 45 days.
Michael
6-10 months. It depends on the operator. Jackfork is usually leasing for Continental but that does not mean that is the operator. Continental just sent out division orders on one right at 5 months, which is early for them.
Would like to hear comments on Devon and their rep for reliability. Landman says they are great. Would like comments from folks with real experience. Thanks for any input.
Anything Rick, anything at all. Forthcoming in their drilling schedules would be a good start. Their completions, their willingness to be more open, a customer service phone number. If you have had one on one experience with the way they deal with lessors, I would be grateful for your input. I’m just not finding anywhere to get info that’s important to me. Example: I hear through the grapevine that drilling has occurred in areas where I own mineral rights, yet I hear nothing from Devon. Are all of us just left in the dark until we get a letter in the mail? Thanks, Rick.
If allah this seems a little confusing, maybe itis because it is written in “Legalexe” and slanted towards “Loganese.” Realizing I am probably wrong and led astray before I even say it here, but is not the royalties being paid after the “net” proceeds mineral owners helping and aiding and abedding the drilling of the wells in question? While “gross” is mineral owners taking no part in the cost of drilling? Why don’t they add the cost of loading it onto ships in Port Arthur, and losses sustained by our great “friends” the Saudi Sheiks and Princes and their Concubines for their losses caused by our profiteering and stuff? Could we write our part of the costs of drilling off both in Oklahoma and the great hog in the sky? Just wondering, you know.
I’m sure it’s not always in Devon’s best interest to give status reports, but I have received return calls from their customer service #. I’ll see if I can find that number.
Has anyone heard anything about Slawson Redhead in 27 17n 3w? Drilling finished mid July.
Osage has a new corporate powerpoint presentation dated today.
Does any one know why producers use different artificial lift systems. For example, Slawson uses Gas Lift, Jet Pump and ESP.
Additionally, Osage announced a major electrical grid build out across its Logan County acreage block, as well as the construction of a state of the art gas gathering system to span the length and width of the Nemaha Ridge project.
Osage says besides their presentation,
Delays caused by drilling multiple wells from the same pad, which is very efficient from a drilling perspective, means that completion and production operations have to wait. The shortage of three phase power to run our downhole and surface pumps has been an issue which we are addressing by building out the grid ourselves. While we have not yet gotten all of our wells in production, it would be a mistake to conclude that there is something amiss with this project solely based on a production lag, which will inevitably catch up.
U.S. Surpasses Russia: http://www.ibtimes.com/us-surpasses-russia-become-largest-oil-natur…
BTW I been to Dubai and all over the Persian Gulf, too. Don’t even want to think about it!
Ronald lee The terms of the lease are all they have to worry about. None of them contact the lessor. They file what is required with the Okla. Corp. Comm. Spacing ,pooling , permit to drill , spud report ,& completion report. You can get it all there. I have seen it where lessor ask for daily drilling reports and production info in the lease like they give working interest owners .
I was at Redhead well in 27, 17n, 3w yesterday. They have a compressor? running, flaring gas, have 7 large storage tanks set up. I was told by a local resident that it was making about 100 bol/day.
Mr W. As part of your research I recommend a roundtrip on the Hurtigruten Norwegian Coastal Ferry from Bergen to Kirkenes. You will be forced to think about the North Sea, the occasional oil rig and whatever benchmark used there. You could also force yourself to route through Dubai to get the flavor of OPEC. The Hague, home of Royal Dutch Shell would be a worthy research point. This could all take a week or two. Good luck! The things we do and say waiting to see a Division Order…