Vern and Ronald, §52-570 has been statutory laws for 20 yrs or more and it does allow companies to withhold small interest royalty payments but only for a short period of time (1 year) until certain amounts have accrued. However, this statute applies to payments to be made after an O/G company has established your royalty payment revenue stream. Oklahoma has the Production Revenue Standards Act (“PRSA”) and the Natural Gas Market Sharing Act (“NGMSA”) and close examination may reveal how these two acts are being used to delay royalty payments without violating statutory laws and/or case laws. As you can see, (“PRSA”) is very long and involved and you need an attorney to help interrupt these Oklahoma ACTS, Statutes and Case Laws.
I am a member of NARO and that is why I knew that the link doesn’t work on downloads as I have tried to forward information before. It’s has lots of good information and well worth the price. Thank you for trying to share.
Mostly Martha, (If you remembewr that song you are in fine shape, LOL) I had to go back and check, they are all in the Mississippian Formation, and all Horizontal.
Ronald, great to hear about the capacity of the pipelines. However, the ability of an individual well to produce is dependent upon quite a few factors-the type of reservoir rock, the thickness and number of perforations if vertical or the length of the lateral and number of perforations if horizontal, completion techniques, porosity and permeability, choke size, pressure regime, areal extent of the reservoir, depth, allowables, oil, gas, life of the well (early is stronger and later is lower), oil & gas prices, etc. Some wells can only produce a few tens of barrels, some in the hundreds, some in the thousands. Statistically, most wells are on the low end. Technology is always improving, but not every well is capable of hundreds of barrels a day, so we need to be realistic. The giant wells of the offshore and Arabian peninsula are in VERY different types of reservoirs than what we are looking at in Northern Oklahoma, The new unconventional shale plays are very different than sand or limestone reservoirs and we are still learning what they can do. A more measured response is more appropriate at this point on the learning curve. I am a geologist with 30 years of experience in exploration and production from all over the globe in all types of rocks. I’ll keep working at it to get those production levels up, and I keep hoping that it will happen, but I don’t assume that every well can actually do it. They just can’t. I urge folks to read the investor presentations and look at the type curves of the particular reservoirs for your acreage to see how they are predicted to behave. Then you can do your financial planning from a more firm footing.
Logan: Devon Energy Production Co. LP; Ringer 21-18N-2W No. 1WH Well; SW1/4 SE1/4 SE1/4 SE1/4 (SL) of 17-18N-02W; 526 barrels oil per day, 679,000 cu-ft gas per day; TD 11,062.
Ronald, Note: On Osage’s presentation page 25 highlighted in yellow it states: Locations & reserves do not include Woodford formation. So, are your listed wells producing from Miss Lime and/or Woodford.
To even understand a little of what is happening and about to happen in Northern Oklahoma, here is a link to what is probably the most critical issue in the production of Logan/Payne counties crude, and the entire state. Thes numbers are phenominal and I do not believe for one minute, that any well will continually pump less than a few hundred BOD, unless by a small time wildcat operator. Anything under a hundred should be capped as non-productive until the producers get their acts together.
M Barnes, Do you think the Arbuckle group in Western Payne County harbors an internal hydrocarbon source and if it has sufficient porosity undiscovered gas may exist?
Since you are a geologist, maybe you can answer a question I have. How far can fracking go in limestone or Mississippi? I have been told it can only go 300 feet each side of the H. frack. That is why OCC makes sure no wells is drilled closer than 360 feet from property lines.
I am reminded of a speech given by Winston Churchill at a colege in Fulton, Missouri, in which he coined the term “Iron Curtain,” but in that same speech, he said, and I quote, to wit, “Today we have 3 kinds of lies, first we have plain lies, then damned lies, and the third is statistics.” It all changes.
Michael Carey thank you for the information on calculator Manta land services. Very much appreciate your prompt reply. Do you have a link to Manta land services?
Here is a little calculator that I put together for the Woodford. Is is similar to the Miss Lime but take it with a grain of salt. Input your acres, spacing, your royalty and your bonus. If you are calculating for a vertical well, then use a tax rate of .07095 for OK. If you are calculating for a horizontal well, then use a tax rate of .01 due to the tax break for four years. You can input the rates of flow, the price, etc. I use it to compare force pooling offers, sale offers, expected cash flow, one well, two wells, etc. It is JUST AN ESTIMATE, use it with caution. These wells decline quickly. The Woodford decline rates were based upon a typical well so may not match your well.