Looking for land info in Ward County

Oil and Gas Leasing Help
21

OK, Let’s get this Puppy tickled -

RD -

The link below should allow you to download what I was able to locate on DrillingInfo on Cimarex Energy Co’s Intimidation 33-63 Well Nos 1H, 2H, 3H & 4H, located in Block 33, Section 63, H&TC RR Survey, Abstract 176, Ward County, Texas:

http://www.yousendit.com/download/UVJnYlJURncwMEc1aWNUQw

The Cimarex Energy Co - Intimidation 33-63 Well No 1H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 8/7/2011, with an Initial Potential (IP) of 581.0 Barrels of Oil Per Day (BOPD) and 2,005.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 2H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 11/17/2011, with an Initial Potential (IP) of 317.0 Barrels of Oil Per Day (BOPD) and 1,385.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported from this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 3H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 2/11/2012, with an Initial Potential (IP) of 424.0 Barrels of Oil Per Day (BOPD) and 1,125.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 4H, located in the Two Georges Field, Ward County, Texas, was completed in the Bone Spring Formation on 2/14/2011, with an Initial Potential (IP) of 606.0 Barrels of Oil Per Day (BOPD) and 1,302.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI).

I have not checked the RRC Spacing Rules for either the Phantom (Wolfcamp) or the Two Georges (Bone Spring) Fields. And I am not certain what the No 4H Well’s having been completed in the Two Georges (Bone Spring) formation, as opposed to the Phantom (Wolfcamp) formation indicates.

Either of those issues, however, may lead to recompletions or allow for additional wells for the lease/unit in the future.

You said that you have been receiving royalty payments for several months from the No 1H, but have not been able to ascertain the status of the other Wells. Cimarex may be behind in its required reporting, but it appears from what I was able to find that all of the Wells have been completed.

If you will notice on the Pipeline Map I have included in the data, Targa Midstream Services has a 12.75" Gas Pipeline terminating in the vicinity of the No 1H Well and No 4H Well. This is probably tied-in to a common Storage Facility (Tank Battery, etc) for all 4 of the wells.

You will have to check your Royalty Check Statements or Stubs to see which wells you are being paid royalties from. If is not from all of 4 of the Wells, that may be because of delays in obtaining Pipeline Rights of Way and building pipelines or at least feeder lines or laterals to the additional wells.

Wade is right, your production may drop off as much as 50% over the first few months. But, with IP’s like you have, even at 50% after 6 months, I think you can start feeling “Kinda Pretty”.

BOPD / MCFD 581.0 / 2,005.0 317.0 / 1,385.0 424.0 / 1,125.0 606.0 / 1,302.0 1,928 / 5,817 /2 = 964.0 / 2,908.5 Settled Production.

That’s A DAY, RD. A DAAAAAAAY. And there are 365 of those in every year.

What is your decimal interest in the pooled unit, the decimal interest they set out in your Royalty Division Order?

If you don’t know that, then what is your mineral interest and how much of the 635.5 acres is your interest in? And what royalty did you retain in your lease?

With those figures, I can give you a fairly accurate estimate of what you should expect after all 4 wells are online and settled.

Hope this helps and Happy Easter -

Charles

PS: NEVER, EVER, EVER MORTGAGE YOUR INTERESTS. That was a lesson I learned when I was much younger that I continue to deeply regret on a daily basis…

22

Good Morning Charles! And Thank you!! That’s the most information I’ve gotten in a year. Very interesting stuff there, no idea well 4 is bigger than well 1. Yeah I don’t know where the breakdown is, Cimarex or TRRC but I haven’t been able to access any production data either, so will have to work on that. But according to the info you sent it does say NO on pooling which is not what administrator said. He was informed that and thus the reason for low distribution. Something else to check into.

We own all 635.5 acres, leasing to Cimarex. I’ve never seen the lease so don’t know about the pooling interest. I believe we, Andrew Jackson Simmerman LP, get 3/8th. There are about 23 members, I am in the number 4 spot sharing with a brother a two cousins so my share is 6.8750%. Last year we saw half a mil but Dec. 12 it dropped below 100k and then this one is even lower, say below 50 or 60k. This has been a huge shock for me and others. Well 1 netted 70k at 1380 output in Dec. 2011 and it said that as the other wells proceeded they were doing about the same output so I figured 70k x 4 equals 240k but never saw that. And of course no information.

I’m sorry I’m not familiar with IP’s…what is that? I’ve learned a lot from you, thank you a lot again!!! Your time is valuable and for that thank you again!! I can’t tell ya how much appreciated so I will take your advice for the moment…

Chill. Relax. Sit, Stay. Life is good…have a great day-

RD

Charles Emery Tooke III said:

OK, Let’s get this Puppy tickled -

RD -

The link below should allow you to download what I was able to locate on DrillingInfo on Cimarex Energy Co’s Intimidation 33-63 Well Nos 1H, 2H, 3H & 4H, located in Block 33, Section 63, H&TC RR Survey, Abstract 176, Ward County, Texas:

http://www.yousendit.com/download/UVJnYlJURncwMEc1aWNUQw

The Cimarex Energy Co - Intimidation 33-63 Well No 1H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 8/7/2011, with an Initial Potential (IP) of 581.0 Barrels of Oil Per Day (BOPD) and 2,005.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 2H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 11/17/2011, with an Initial Potential (IP) of 317.0 Barrels of Oil Per Day (BOPD) and 1,385.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported from this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 3H, located in the Phantom Field, Ward County, Texas, was completed in the Wolfcamp Formation on 2/11/2012, with an Initial Potential (IP) of 424.0 Barrels of Oil Per Day (BOPD) and 1,125.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI);

The Cimarex Energy Co - Intimidation 33-63 Well No 4H, located in the Two Georges Field, Ward County, Texas, was completed in the Bone Spring Formation on 2/14/2011, with an Initial Potential (IP) of 606.0 Barrels of Oil Per Day (BOPD) and 1,302.0 Thousand Cubic Feet of Gas Per Day (MCFD). I was not able to locate any production reported for this well on DrillingInfo (DI).

I have not checked the RRC Spacing Rules for either the Phantom (Wolfcamp) or the Two Georges (Bone Spring) Fields. And I am not certain what the No 4H Well’s having been completed in the Two Georges (Bone Spring) formation, as opposed to the Phantom (Wolfcamp) formation indicates.

Either of those issues, however, may lead to recompletions or allow for additional wells for the lease/unit in the future.

You said that you have been receiving royalty payments for several months from the No 1H, but have not been able to ascertain the status of the other Wells. Cimarex may be behind in its required reporting, but it appears from what I was able to find that all of the Wells have been completed.

If you will notice on the Pipeline Map I have included in the data, Targa Midstream Services has a 12.75" Gas Pipeline terminating in the vicinity of the No 1H Well and No 4H Well. This is probably tied-in to a common Storage Facility (Tank Battery, etc) for all 4 of the wells.

You will have to check your Royalty Check Statements or Stubs to see which wells you are being paid royalties from. If it is not from all of 4 of the Wells, that may be because of delays in obtaining Pipeline Rights of Way and building pipelines or at least feeder lines or laterals to the additional wells.

Wade is right, your production may drop off as much as 50% over the first few months. But, with IP’s like you have, even at 50% after 6 months, I think you can start feeling “Kinda Pretty”.

BOPD / MCFD 581.0 / 2,005.0 317.0 / 1,385.0 424.0 / 1,125.0 606.0 / 1,302.0 1,928 / 5,817 /2 = 964.0 / 2,908.5 Settled Production.

That’s A DAY, RD. A DAAAAAAAY. And there are 365 of those in every year.

What is your decimal interest in the pooled unit, the decimal interest they set out in your Royalty Division Order?

If you don’t know that, then what is your mineral interest and how much of the 635.5 acres is your interest in? And what royalty did you retain in your lease?

With those figures, I can give you a fairly accurate estimate of what you should expect after all 4 wells are online and settled.

Hope this helps and Happy Easter -

Charles

PS: NEVER, EVER, EVER MORTGAGE YOUR INTERESTS. That was a lesson I learned when I was much younger that I continue to deeply regret on a daily basis…

RD Pitcock said:

Thank you Charles I really appreciate all you’ve done. I hope and hope!! Happy Easter to you and have a great weekend!

RD

Charles Emery Tooke III said:

Good Lord n’ Butter…

Guys, after spending several hours gathering research online, I just spent the past 40 minutes typing a very nicely detailed response to RD on this. But when I switched to “Page One” to check which Well he/she has been receiving royalties from, when I switched back to “Page Two” to continue to edit my response, everything I had written had disappeared.

I don’t mean to whine, but who the duck designed this website…?

I’ll write it all again when I have time, but it’s Easter Weekend and I have company again tonight and they’ve been patient enough, so I need to jump.

Shortest possible version for RD:

Chill. Relax. Sit, Stay. Life is Good and yours… in particular, is going to get a whole lot better over the coming months.

Hope this helps -

Charles

23

IP = Initial Potential. It’s the production rates when a well is first tested - you will find the figures on the Completion Reports (or, in this case, the DrillingInfo Completion Details Page).

Your settled production is frequently about half of that, although I saw where one well in eastern Frio County was IP’d at 125 BOPD and after a few months cleaned up to 1,200 BOPD +!

I would have to see your Check Statements to determine which wells you are actually being paid on. It may be only the one.

Hope this helps -

Charles

24

Hi Charles,

That info I don’t have so put a call into administrator. Will let you know. Thanks.

RD

Charles Emery Tooke III said:

IP = Initial Potential. It’s the production rates when a well is first tested - you will find the figures on the Completion Reports (or, in this case, the DrillingInfo Completion Details Page).

Your settled production is frequently about half of that, although I saw where one well in eastern Frio County was IP’d at 125 BOPD and after a few months cleaned up to 1,200 BOPD +!

I would have to see your Check Statements to determine which wells you are actually being paid on. It may be only the one.

Hope this helps -

Charles

25

Who you really need to talk to is the Landman responsible for that area. Landmen talk to Landmen. Let me try. I’ll run him or her to ground tomorrow and see if I can get the low-down.

26

Good Morning Charles,

I forgot to tell you that we have more land, about 30 acres or so Section 72 Block 33 also.

Thanks,

RD

Charles Emery Tooke III said:

Who you really need to talk to is the Landman responsible for that area. Landmen talk to Landmen. Let me try. I’ll run him or her to ground tomorrow and see if I can get the low-down.

27

Hi Charles,

I think the landman is a woman from what I understand but hear she’s not there much. I don’t know how correct that info is though.

Thank you and have a great day!

RD

RD Pitcock said:

Good Morning Charles,

I forgot to tell ya that we have more land, about 30 acres or so Section 72 Block 33 also.

Thanks,

RD

Charles Emery Tooke III said:

Who you really need to talk to is the Landman responsible for that area. Landmen talk to Landmen. Let me try. I’ll run him or her to ground tomorrow and see if I can get the low-down.