Ronald,
I don’t think we are talking about wells in Alfalfa or Woods Co. They are doing great, should be paid out before the end of one year, great for investor. Now how long they stand up is the question.
Since you didn’t do go in math, I will give you some figures.
Lets say you have the well that is making 156 BBD in Logan Co. That is 56,940 for the year, which that is probably high. Now you divide by 3/16 - 56,940, but that is for the section of 640 acres. Now lets take and divide (simple math) by 640 and that leaves a person with 1 A with a total of 16. 68 Bb for the year. Now lets say the avg. price is $90 x 16.68 D= $1501 per A for the year, divided by 12 months, and that is only $125.11 per month without taxes being paid. So, like I said before, you have a long ways to go to become a Millionaire. Even if you owned the whole 640, you wouldn’t be a Millionaire in a year.
Now you want to know why people invest money in wells, because they don’t know where to put it. I figure if I get my investment back within 5 years I have done great, saved a lot on taxes and usually get some good tax breaks. But, my CPA also told me I needed to live to be over 200 years old to write off all my loses, so some wasn’t a very good investment. I don’t know where you are getting your figures, but I am on both sides of the fence. Owner of surface/minerals and also an investor.
Virginia So do you sometimes take a Working Interest ?
Say, thank YOU Virginia,** I really appreciate your calculation, and then also showing all of us exactly how you did it. I am sure others will also appreciate it. $125.00 a month, wellllll, lets see, on a zero investment, I would say that is pretty darned great. It would put bacon in my beans. LOL Thank you, Virginia, and I will do a Sunrise Prayer, for your investments. (Sunrise Prayer - Douglas Spotted Eagle, a Navajo, Youtube http://www.youtube.com/watch?v=qPNPJnOPfxc&feature=share This is what I use every morning to strengthen my own singing voice.**
Ron,
A few years ago I was with an investment group that did oil/gas, land, etc. I made a little money and lost a lot. Some was WI and some was purchasing minerals, it was what every they felt was a good deal. Kind of like stocks, some good deals don’t last long. Now it has to be a really a good deal before I look at it. Since my husband retired, my play money has a new meaning, less risk. That is why I’m saying that these 400 to 500 BBD is to get investor’s interested and not what they are going to make in the future.
Ron,
No I haven’t and don’t plan on it. Last WI almost penned a person to death. Seems they always needed more money for something to make the well better. But, didn’t seem that the well got any better, we just had more money down the hole.
Have you ever taken a W I under a pooling order with interest that you own ?
This is the other half of the family. Our mineral rights are in Logan County and we live over in the Osage hills between Pawhuska and Bartlesville. My curiousity has gotten the best of me. Two wells were drilled just west of Pawhuska, possibly in the city limits, about a half mile apart, on the south side of hyway 60. Probably Sec 7 or 8, 25N, 9 . E The wells were completed. a line was run from the west well to the east well where the tank batteries were set. I worked 44 years in the refining side of the oil industry and spent some time out in the oil patch calibrating and maintaining meters. At no time have I ever seen a tank battery of this capacity for just two wells. Does anyone know how good these wells were?
When were they drilled ? I could find nothing in 25n-9e in the last three years. No permits or anything.
Ron—the wells were drilled the last few months of 2012. the location has to be right, they are just off highway right-of-way coming into Pawhuska on 60 from the west. The sight is all new, very neat and clean, color scheme is orange if that is any kind of clue. There is a flare burning off-gas. Some kind of well was drilled.
I have gone back to 1928-29, and from those years to 2013, Logan County remained one big question mark and everything revealed…“inconclusive.” Cost of drilling, rotary, was between $9 and $10 per foot, my how things have changed. not many wells produced much, which had the experts sort of confused, because several wells came in at 2,900 - 3,500 bpd and that was great in those days??? Some experts are murmerring (Not very loud, though) that some Logan
County discoveries are probably on the astronomical scale, but they are keeping mum about it right now. LOL
Thanks for all the imput. These wells being in Osage Co., in the Osage Indian Nation, might be we are looking in the wrong place for information. We live out in the woods and I go to town to get a haircut every other month, whether I need one or not, so, I’m going to town for a haircut. Someone at the barbershop can probably set me straight. Thanks.
Meanwhile, Claude, there are other indications that boggle the imaginatin beyoun our know limits. Goldman Sacs is still insisting that the USA will be the biggest n gas exporter in the world, but I have seen no time frame for it. Goldman Sacs also is saying the USA will be the largest producer of oil in the world by 2013, that is only 11 months away, and the Keystone Pipeline Cushing pipe from Cushing to Port Arthur TX is nearly completed. I find little info about the branch going to Cincinnati, OH, is this possibly because the Mississippi River is drying up and transporting crude down the OHIO AND Mississippi Rivers is questionable because of this? Are 20,000 bpd PLUS wells closer than we think? Europe, which will be the recipient of 95% of our output, is wanting out from under the Arabic oil scedne in a desperate way. China is everywhere all over the world in oil exploration. THE RACE IS ON! And the oil conglomerants have no choice to go for what is under Oklahoma, Texas, Kansas, Nebraska,and North and south Dakota. BTW, as a footnote, Ted Turner owns half a million mineral acres in Montana. I have no idea how much the Cheneys own.
Claude,
I thought maybe I was looking in the wrong Co., but I don’t find anything either.
Are you sure they are all oil tanks, can some of them be salt water? Maybe they haven’t got the salt water well drilled yet and most of the H wells I have been around do make a lot of salt water. I have seen wells with the big tanks and as many as 8 tanks for one well, only to find out the well only made 50 BBD and the rest was for salt water.
Ronald,
You are talking about wells that are drilled in ND, NE tip of Montana and Can. The best well that I have heard of up there was 5,000 BOEPD in 24 hours in Sanish/Three Forks area. Also, we need to look at the grade of the oil.
Logan Co doesn’t have anything like this that I know of. Even in Woods and Alfalfa Co, I haven’t heard of anything over 2,800 per day. I’m sure I haven’t heard of everything that is going on in Oklahoma. But, I think people would be hearing something if anything came in near the 5,000 mark. Sorry.
I used to write greeting cards for Hallmark, made a little money, but I recall one in particular that was very popular Hallmark put out every year, Studio
Card that simply said… “…Yes, Virginia, there is a Santa Claus…” 
Virginia Good morning. If you were looking for the best well in Logan Co.what three townships would you start looking at.
In 19-2, 33 12/11 to 8/12, 19,198 BO & 2772 MCF, 16 ,2/12 to 8/12 , 13,497 BO & 3214 MCF.
Here is a tidbit** just clipped, referring to BAKKEN OIL activity, and many experts are comparing mid-central to the same potential anyway, I quote**
"Hess BB-Budahn…0403H-1 well was tested in January, 2012; by the end of April,
2012, it had produced more than 109,000…" That is over 35,000 bpd, and in first of 2012, it got even better each passing day. It is headed our way, and some experts are saying there are potentials for up to 100,000 per day with the right equipment to handle it. They arer saying life of this well should be 20 - 30 years.