I haven’t been to the forum for a while. We have rights in Major and Kingfisher 32 20N 9W. Does anyone know of anything going on there?
If a surface hole is in our section, but the bottom hole is not, are we still to receive royalties?
Last I knew Chisholm was drilling and it looks like production started in January 2019.
Sheree, my home-made records show a few horizontal wells have been permitted in the south of 20N 9W, but completion reports have not been filed. If 19N 9W turns out as productive as 18N 9W has shown, then you can be confident in your chances section 32 20N 9W will get drilled.
Sheree- if the wellbore penetrated the zone that is producing in your section and that wellbore has perforations that are in your Section, you will receive revenue from that well.
If you look up the permit, it often gives a map of where the well path is planned. I have attached it for you. In the case, you will not have perforations in your section as the well goes south into section 5.
Thank you Todd.
I referred to the Schlumberger glossary to make sure I understood your answer. Is it safe to assume if any ‘surface point’ is on our section we will receive revenue?
What about if only the well bottom is under our section?
Yet the surface hole is in 32, correct? Does that count? Chisholm sent us leasing info for this well.
No, you only receive royalties if there are perforations in your section. If you think of a bendy straw, consider the short piece as the vertical hole. Then consider the bendy part as the turn that the wellbore has to make. It takes up to a quarter mile to make that turn and then the long part of the straw is the horizontal part of the hole. They will only perforate (blast holes) into the horizontal portion of the well that is in the reservoir. There is an easement along the lease line, so no perforations on the 32 side since the turn is in that section and the easement prohibits perforations. No perforations on the north 330’ feet of 5 due to the easement and the last part of the turn. See the words LANDING POINT on the permit map. That is the soonest point they can begin perforations.
If Chisholm sent you leasing information for 32, it may be that they plan to drill a second well using the same pad and drill a well to the north. They would scoot over a few feet and drill that well after the well that is going south. Just a guess.
Thanks, LC. I follow the daily permit and completion reports and it seems everything is happening around us. It drive me nuts