I went to Osage’s home page and read their press release for today. The wells around Ruffed Grouse in 20-17-3 are shown coming in at 600-700 BOPD peak, nothing wrong with that. When are we going to start on the second well—drill baby drill----
There is no current drilling in 29-19N-02W. You can check for activity at this link.
As for asking for 12% interest penalty, with the new legislation in effect July 1 of this year, it means little, and is filled with more holes than Swiss Cheese. First, they ared required to place blame for the whole thing, or possibly sharable parts, which is nearly impossible without lots of hearings, finger pointing, crying and “story telling.” Only then, according to my tipsters, would they be able to determine who will eventually shoulder the burden of 12% penalties. Then there would be more hearings, more argument, and more confusion as to who did what, and why they did it, and how much of the blame can be put off into the “just one of those things” category. Nobody will admit to anything, and that would allow them 2 or 3 years just for beginners. Nothing new. As for Osage manipulating stock prices, do you really think they would try? LOL
Of course they manipulate stock prices. In addition, Oklahoma politicians and regulators have been owned by the Oil and Gas Companies since EW Marland {Conoco} and Leon Phillips {Phillips Petroleum} were governors in the 1930s or whenever it was. Some of us just pray there will be a few crumbs for the “po folk” 'for we die…
Indeed this should light up the darkened portions of many skeptic’s minds around. The energy world, and particularly the oil industry world, is taintede with “bad news” and less than honest behaivour, thus making most people, and especially land owners as well as mineral owners varying degrees of pesimism and somewhat goosy. I have always said Slawson is a shining knight of honor and Osage is equally as reputable. I see no reason for either to “hold back” any news of production in order to sway the market of either or both one way or the other. You can bet they are studying and analyzing the entire process of
Ruffed Grouse from spud to production flow in every little detail, as ths is the future of production in Logan County, and of course, as always, this is merely my own opinion. I am always right, by the way, I have not been wrong in 29 years I think it is now. I look for exciting Top Headline News regarding Ruffed Grouse.
Vern James–thank you for brightening my day. We have read your input on time-line of division order and royalty payment and were surprised and pleased that it might be that quick. If ours goes as well, we should be getting the division order in the next few days. When this was all beginning, we talked and predicted that our first check would be here by my birthday, Oct. 31, Holloween. With a little luck, it looks like it’s going to happen.
Vern, My Cousin drove through area a couple of weeks ago and said a lot of roads dug up where they are laying pipeline. Guess that work is well under way if not done. As far as filing reports with OCC, there apparently is a bit of latitude with Spud Report and Completion Reports, etc., but I doubt they mess too much with the Tax Commission. That is a good thing, especially for us who have never seen a Royalty Check before.
Hi All ,
Back to the division order posts from earlier. I have a well in my section
26 17n 3w that shows completion and April and I have not received anything.
Also, my share is small and the well came in low ( or at least seemed low). I have been getting purchse offers for 3,500 and acre… Not sure what to do… All seems like a gamble.
Any mineral owners in the Cowboy, Maverick or McNeil want to verify that?
Thanks Mineral Steve. I think I will wait but, it just seems like gambling to me! 
Also, makes me nervous I have not receveid a division order.
Osage Press Release Sept 16, 2013
“The significance of the early production from the Tontz 2-32H, which is the second horizontal Mississippian well in Section 32-17N-3W, may be more than meets the eye,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OTCBB:OEDV). "The Tontz 1-32H, which was the first horizontal Mississippian well in the section, has already produced over 30,000 barrels of oil and over 30 million cubic feet of natural gas. Osage’s Wolf 1-29H, which literally shares a drilling pad with the Tontz 2-32, has already produced over 80,000 barrels of oil and over 80 million cubic feet of natural gas.
Michael they can and have drilled Multiunit Horizontal wells under two sections with the same wellbore and often with the surface location in a third section . Like a well from 13 under 12 & 1. They are split based on the proportion of completed interval that each section bears to the total . That is how much of the producing horizontal bore is under your section.
When the infill really ramps up here with (Increased Well Densities) I don’t think many of will get offers less than $7,000.00
I have seen several questions regarding first production and the receipt of the division order and subsequent royalty payments. This is my experience on a well drilled by Slawson in which I have a small interest. First production was the end of April 2013. The division order was received June 20th and the first check from Slawson was dated July 15th.
I hope this helps those with the question on what to expect on the timeline. I would note that the Slawson completion filings with the OCC were in August and the initial production reported is less that the production reports I have received with my checks.
Thanks Vern. Very useful info. Curious if the well was one of those five wells in 17N-3W that had Completion Reports all showing the same info. Namely 125 BOD and 100 MCF. The sections were 5,8,21,26 and 28. Your timeline is consistent with what the “Files” lady at Slawson told me a few days ago.
Include me in the group who has never seen a mineral rights royalty check, however and btw, I have been receiving royalty checks from my poetry books since 2002. I stay in Hilton Hotels whenever I travel, most recent just last week in Winter Haven, Florida. I hope they never, ever drill in this most beautiful of Florida towns, sheer Paradise, and largely overlooked by tourists.
Do h wells often drill under roads into other sections? how are the mineral rights split up in this situations?
Yes they drill under roads. With horizontal wells, they can drill 2 sections from the same pad with each well drilling in the opposite direction. The pad is generally located very near the section line. This video explains the drilling process.
Horizontal Drilling Animation
As they drill, readings are taken to know the location of the horizontal well and a survey is filed with the OCC. This is an example for an actual well.
Tonz 1-32H Survey
Harley, yes it is one of the 17N-3W wells you referenced. I think the initial production was low because of limited tank storage and the fact they were trucking the crude and there are 2 wells on the same pad pumping from 2 different sections. Each month, the production has increased.
Marlo,
It is a gamble and the time value of cash plays a lot into it. Most of the offer letters I have received here are in between $4000-$4,500. Some have been as high as $7,000 but want 90 days to MAYBE pay that. If you do sell I think $5,500 is more than a fair price. Let them keep getting higher cause they will. In the end we all have a different time value of $$ so that tips the sell/hold scale differently for everyone.