Talk to your attorney about Working Interest. It can be more than the initial investment. The operating expenses go on for the life of the well. You would be responsible for those as well, although they may deduct from your royalties. Devon is generally a good operator, but they are under quite a few lawsuits right now for discrepancies in royalty payments. I just received a nice check from a settlement regarding them. I am not sure about the suing. I have heard both sides. It is safer to have your working interests in a LLC to protect your personal assets. It is a complex question. Some folks love the thrill. I do not. Get informed before you make a decision.
Division Orders are not public records and are only available from the company that sent them. Each company has a Division Order group or a Revenue group that you can contact if you are missing an original. Also, I don’t usually sign the one they send unless it is on the Model NADOA form without any additions or deletions to the original lease. Quite often a company will send one with expansive clauses. You do not have to sign theirs. The NADOA form is available on the NARO website.
Ann, the whole Working Interest question should be discussed with your oil & gas attorney and an oil & gas accountant. It has quite a bit of legal and tax ramifications that are constantly changing. Not for the faint of heart or the inexperienced. You need to have carefully worded legal entities in place to protect you.
Martha I could not find one for 21-19n-1w.
Thanks Ron, I talked to a geologist at the OCC and he said there were some concerns about location acceptance and drainage when de-watering the Miss Lime, so where can I get time and dates for my surrounding sections locations acceptance hearings?
Logan: Devon Energy Production Co. LP; Maverick 1-18N-3W No. 1MH Well; SW1/4 SE1/4 SW1/4 SW1/4 (BHL) of 01-18N-03W; 110 barrels oil per day, 51,000 cu-ft gas per day; TD 10,796.
Are Division Orders public records?
Where are they filed? Logan County Courthouse? The OCC?
Check out this video of one of Patterson-UTI Energy’s APEX rigs, which can walk up to 150 feet in any direction on a drilling pad. These advanced rigs can travel 10 feet to 20 feet in about 45 minutes. http://www.media-server.com/m/p/p773tcva Pad drilling has helped to bolster margins in pressure pumping-the horsepower that’s critical to hydraulic fracturing.
Martha,
The spacing order for the Peach 1-20WH well is #600682 which you can look up on the OCC Images website. Location exception order is CD 201203909 and order #612546.
The well was drilled to a measured depth of 10111’MD with casing set that far-supposedly 50’ from the lease line. However, the perfs are only to 9972’MD which is 139’ less (189’ MD which at this angle is pretty close to horizontal). Pretty close to the 190’ listed below from the order 612546.
Looks like 20 was pooled in 2012-Sept 12. CD 201204861 and Order 601976. Maybe you have some $$ in suspense? Here are the proscribed perfs from the 612546 location order.
Dana Murphy is the Commissioner. You may have better luck with her. Not sure you will have much luck since it looks like 1’ difference….
M Barnes, Thank you for the OCC orders on Sec 17. I just spoke with a geologist with the OCC and he stated that there is a 165’ allowable offset for the Woodford, so Devon is fine at 190’, however, as you noted, when they drill the Woodford they get the Mississippian and the offset allowable for the Miss is 325’. There are several old Miss wells that produced in Sec 17, so I don’t see how Devon is producing the Peach 1-20 in the Woodford when they drilled a single formation Miss. down in Sec 29 with Peach 1-29. How can they not be diluting the Miss and possibly the Woodford in Sec 17?
If they only perfed in the Woodford, they “probably” are not draining the Miss. Also the drainage only really drains about a radius of 150’ from the well bore. Think of it as long tubes of drainage, not planes of some thickness. The wells are shaped sort of like angle irons. They go straight down to the kickoff point, then kick out at almost 90 degrees. By using one pad, they can scoot over slightly and save the landowner from three more pads. So the bottom hole of Peach 1-29MH is in the Miss about two miles from the bottom hole of the 1-20WH which is in the Woodford. Peach 1-30WH is in the Woodford, not the Miss, so 29 is not interfering with 30 (or so they hope). 20WH is not interfering with 19MH. I suspect that these are test holes for a massive drilling program about to come. They are trying to see if they are interfering. Go to the Cimarex investor presentations to see a good set of pictures of what they are doing in the CANA Woodford to the west in Canadian County. Devon just got a huge influx of Chinese money, so I expect a whole lot more drilling in Logan and Payne to tap both the Woodford and the Mississippian. Some really cool pictures in some of the Continental presentations on the Bakken to see how they are conducting interference tests in the Bakken and Three Forks which are within 100’ of each other. They haven’t said, but they may also be conducting microseismic testing and listening to the wells as they produce. Pretty cool stuff. The Miss is going to drain a little differently than the Woodford since it is a lime and the Woodford is a silty shale, hence the different allowable offsets. The Miss tube has a larger radius of drainage.
M Barnes, Could you please post Sec 29-19N-01W Payne Co. location exception for the Peach 1-29. A mineral owner in Sec. 29 asked me to get it for her. Thank you.
Ann you can take a working interest with any part of your 4 acre interest and a different options with the balance . They are running behind on filing the orders after the hearing . And because most of the companies are asking for up to a year to drill the well you can ask for and get payment with notice of spud on your share . You can take as little as 1/2 acre W.I. and get daily drilling reports, production and other well information . You can deduct it all . There can be cost overruns but not always .
Ann, you do not want to participate as a WI owner if you are even asking these questions. Furthermore, it is (in my opinion) never advisable to join as a WI owner with any of these big companies like Devon or Chesapeake…their monthly operating costs are waaaaaaay too high for a 3rd party joiner to make any good money.
Ron, Do you have the pooling order for Sec 21-19N-01W?
Ann, I participated with Glenn Supply in the early 90’s on many wells in Hughes Co and it was a very rewarding experience. They were a very good company and we knew each other like friends. There was a lot of competition among O/G companies back then and we were drilling wildcats, so good companies like Glenn S. didn’t mind good mineral owners paying for a reasonable percentage of a well that might not produce. We never hit a dry hole and I’m so glad I got to be a part of that experience. However, drilling today is nothing like what it used to be and I would caution anyone on participating with a company of people who you do not know personally and if you have never participated before, because you have to understand every little detail about what they are doing so you won’t be continuously overcharged.
Ann if you would like send me a friend request I would send you my # and could talk to you about W.I.
Payne: Devon Energy Production Co. LP; Jardot 6-7-18N No. 1WHX Well; NE1/4 NE1/4 NW1/4 NW1/4 (BHL) of 07-18N-03E; 1,579 barrels oil per day, 1,971,000 cu-ft gas per day; TD 14,789.
Devon Energy Production Co. LP; Jardot 36-19N-2E No. 1MH Well; NW1/4 NE1/4 NE1/4 NE1/4 (BHL) of 36-19N-02E; 261 barrels oil per day, 429,000 cu-ft gas per day; TD 9,442.
