The 3,000 bopd is that from the four wells in deep creek,or the three McKinzie wells .Thank You again four all your answers to my questions.Marcella
Marcella, I had to look again and brush up on the facts, it wasn't a 3,000 barrel IP but I think it could have been if they let it. The well that originates in section 149 - 95 - 27 and the bore goes into your section (making it your well) 149 - 95 - 34 has produced 59,756 barrels in 2 1/2 months, the NDIC has a typo there which says it produced more than 17,000 barrels in 3 days in april, but I believe the total 59,756. A very good well. It's name is Veeder 1-27/34H operated by Helis Oil and Gas co in the Grail field just NE of lost bridge. This is a single well, so you can get an idea of the potential. The operator may not try to pump the guts out of the well at todays prices, it's not the best time to have a well start it's best production but we have no control over that. I have two wells that are new and two that are drilling now and you can believe that I will not be as anxious for them to start producing as I was when oil was $113 a barrel. These things go in cycles, I think headlines in the paper drove the price up before, headlines drove the price down now, and headlines are going to drive the price back up in time. If you consider inflation, oil is really cheap right now, it has room to go back up.
R W Kennedy, I have two wells off confidential list ,one gets 1028 bopd and one 902 bopd .Right now the two wells are producing 57900. in 30 days ,I recieved $118.15 for seven months. No check this month,How does Helis oil co.issue checks? That well has'nt paid.Who knows when i will get another check.Pretty scary.Hope you did'nt sign with a pugh clause.Thank you for your research Marcella
Marcella, your two wells drilled in section 12 have only produced about 110,000 barrels of oil total in about 9 months the last time I looked and it is shared by all in a 2560 acre spacing. If your royalty check was less than $100 I think they can hold it until you accumulate more than $100, this may even be in your lease. Many companies are behind in their title work. I am assuming that you have not yet received your division order from Helis for the Veeder well. I have received checks before the division order came but I think that is not the usual order of events. Marcella, it may be a good idea to contact Helis and ask them when you may expect a division order. I made such a call to KOG about wells that they drilled that I have an interest in, I had document numbers (county recorder) at hand for my fathers probate and my mineral deeds and my title was approved and I was put in pay status while I was speaking to them on the phone and a month later I had a check. Marcella, I had a quick look and your wells only produced 1/2 month or less in the month of may. I think it likely that this was because of the recent sharp downturn in the price of oil and I am sure they will produce more when they have a buyer paying more. I think the measure of a well by oil company standards is how much money it brings in over it's entire life, they do like wells that pay off within 2 years so those areas capable of that may get drilled first but the main thing is to maximize how much money the operator can make before the well is plugged and abandoned. Large oil companies do not need to pump the well dry when the price is low, they can slow production and wait for the price to rise. Most of my wells did pump in may but I think that was because they had a contract for their oil and my oil sold at $84 per barrel and not the $60 to $65 price I saw some buyers were offering. I know it's hard to understand what the operators are doing from the mineral owners point of view. I think a division order is about due from Helis to you within about a month but you can try to call them and help them along if you like. Your Helis well only flowed oil half of the month of may at I presume a reduced rate to pay a few bills and keep the well in top condition, it's still a good well. Oil seems to be rising, I don't know if it's because of the oil workers strike in northern europe or the fact that Canadian tar sands were breaking even or losing money at the prices of the last month, the fact that Syria shot down a Turkish fighter jet, whatever reason, the price is up for now.
R.W.Kennedy,Thank you for your response,always very good,to hear and read your reply.Were do you get the info on bopd a well pumps? Looks like theres a horizontal leg running through from well # 21217 T 149 95 through section 25.just what we were concerned about,before my lease is up.Or was that section 25 in T 148 96. Looks like I share in 12 wells now.Maybe it will turn out some profit.Thank You Marcella
Marcella, I have a subscription to the NDIC O&G Div. website and I can look at production from any non-confidential well in the state, as soon as they post the information. Marcella, I believe that that line is not a wellbore because of it's length and that it is the boundary between Range 94/95. The well you spotted #21217 in section 13 is operated by WPX Energy Williston, LLC.
R W Kennedy, Okay1 Can you tell me how well # 21837 ---#21838 ---#21839---#21840 deep creek 13 How many BOPD these wells are producing. There is also a horizontal line running through 25 in T 148 96 from a well # 18797 as far as I can tell.Thank 's Again Marcella
Marcella, #'s 21837 - 21838 - 21839 - 21840 are on the confidential list without a date on which their confidential period would end. This usually means they are not drilled yet, only permits. All permits for O&G wells in ND start as confidential, the true confidential period does not start until the operator requests it, usually after the well is drilled and there is something to keep confidential. The well that legs into T-148 R-96 section 25 from section 36 is TAT-STATE 14X-36B, operated by XTO Energy inc. Production for this well IP 1743, 10,596 in the month of April, 11,910 in the month of May. If someone is telling you those # wells are drilled, I would call and confirm with the NDIC Oil and Gas Division who will likely wonder why they have not received the paperwork and make a few calls.
Hello, I have recently found out our family has 10 mineral acres in what sounds like the exact sections that Marcella has listed, including the wells with Hellis and XTO. I am learning this as I go because the lease we have with Marathon was signed by an Uncle who is fighting dementia and cannot relate as to any history of the lease. It has expired for roughly half of the acreage which is not drilled on and Marathon is making an offer of $700/acre plus 1/6 royalty. From what I have read on this forum that seems low. I am looking for some advice that I can help my family with and am not sure where to turn. There is a lot I do not understand and am wondering what to do. Is there such a thing as a landman that works for mineral owners?
Mr. Bishop, I would consider $700 per acre a very low bonus in that area. 1/6th is 16.67% and if you didn't sign a lease [go non consent] at all you would receive 16% from the very first barrel and when the well recovers cost of your portion plus a 50% penalty of the actual cost of drilling you would have a working interest and receive 100% from which you would subtract operating expenses which can be amazingly low, a couple of dollars per acre per month sometimes. If you want to lease you really need research and tell them to bring their best offer. If you give your legal descriptions for what they want to lease, I will look at what's there for you. In that general area I wouldn't consider it a serious offer til they reached $2,000 and 20%. Looking again just for giggles, the Tat State 14x-36B has produced 60,764 barrels of oil in 5 months and instead of production declining, it's actually increasing, first 3 months production were in the 10k to 11k range and the last 2 months were in the 12k to 15k range. I wish I had a part of that well. There are also successful wells in the Duperow and Red River formations. $2,000 per acre bonus could be a bargain with proven production from 3 formations in section 34 - 148 -96. Don't sell your acres short if you are in that area.
JOHN BISHOP said:
Hello, I have recently found out our family has 10 mineral acres in what sounds like the exact sections that Marcella has listed, including the wells with Hellis and XTO. I am learning this as I go because the lease we have with Marathon was signed by an Uncle who is fighting dementia and cannot relate as to any history of the lease. It has expired for roughly half of the acreage which is not drilled on and Marathon is making an offer of $700/acre plus 1/6 royalty. From what I have read on this forum that seems low. I am looking for some advice that I can help my family with and am not sure where to turn. There is a lot I do not understand and am wondering what to do. Is there such a thing as a landman that works for mineral owners?
Mr. Kennedy I would be glad to forward you my information and any help would be much appreciated. I am new to this board so I don't know how I can forward it to you. We have already signed a division order with MARATHON for the existing lease, but now I have contacted XTO and Helis and it sounds like they will owe us something from the wells they now have producing. When they send us a division order is there any way to check the math on the percentage that they give us? Is it wrong to sign a division order before verifying? From the GIS server map I have actually counted up to 15 wells that are in or pass through our sections (many of the same Marcella listed) but we have yet to see our first nickel. It would be great to get paid but I want to find some advice so we do not compromise ourselves by signing the wrong thing.
Mr. Bishop, there is no requirement that you sign and return a division order in the state of North Dakota, the operator has to pay you whether you return it or not, therefore I do not return division orders in the state of North Dakota. It's not easy to determine your net mineral acres in most cases. In my case I went through old probates to determine what my grandfather and father inherited so I knew what I inherited. I will send you a friend request so we can message privately. Watch the upper right hand side of the page under where your name appears.
JOHN BISHOP said:
Mr. Kennedy I would be glad to forward you my information and any help would be much appreciated. I am new to this board so I don't know how I can forward it to you. We have already signed a division order with MARATHON for the existing lease, but now I have contacted XTO and Helis and it sounds like they will owe us something from the wells they now have producing. When they send us a division order is there any way to check the math on the percentage that they give us? Is it wrong to sign a division order before verifying? From the GIS server map I have actually counted up to 15 wells that are in or pass through our sections (many of the same Marcella listed) but we have yet to see our first nickel. It would be great to get paid but I want to find some advice so we do not compromise ourselves by signing the wrong thing.
r w kennedy said:
Marcella, I believe I have gotten to the bottom of this offer, it is not in error. Marcella you are held by production everywhere you have a well, or a well being drilled by the continuing operations clause. Your lease has a pugh clause and your interest in 149 - 95 - 25 has not been drilled, is not even permitted and the primary term of your lease expires in september this year. I would let it. I would say to negotiate a new lease with higher royalty for this spacing. Marcella, just let the lease expire and be sure to notify Marathon that it has expired by certified letter and file an affidavit of no production. Which brings me to your lease. Marcella, in your current lease you are paying for the equipment for conditioning the production for sale, you do not want to do that in your new lease that will cover section 25 alone as you are paying expenses that you do not even get to deduct from your taxes. I would also address the clause [#13] that states that you must give notice of breach or default and give the lessee 90 days to correct before you can take legal action. I find such clauses incredible. The breach could go on for some time before you notice it, being an ordinary mineral owner, but they still have 90 days from the time you serve them with notice to do what they should have done without being prompted [ what they have contracted to do ], before you could sue them. They also threw in that no matter the outcome of the case you agree that they can never lose the lease no matter how bad they act. The most outrageous thing of all is that you have to tell them they are in breach, YOU, have to tell THEM how to run their oil company, as if they were five year olds and didn't have a copy of the lease to tell them what they need to do. It's #13 on your current lease and it needs to disappear in your new lease for the minerals in section 25, you can't fix it where you already have wells but no need to make the same mistake again. Now the money part, this is a good area, I would not accept less than a 20% royalty, with no deductions for anything but taxes that we all must pay. I would ask $4,000 per net acre bonus which I think you could get if you negotiated hard, possibly asking $5,000 per net acre to start. If they would not offer over $3,000 fairly quickly I would just stop talking to them after telling them thay have forced you to seek offers elsewhere. Marcella, after your current lease expires and your pugh clause frees your acres in section 25 you can lease to anyone, Marathon, Helis or 50 other possibilities. Nothing sets market value like competition, the more bidders the better. If I can assist in any way, just let me know. Robert.
R W Kennedy,Okay,now on Sept.29th my lease is up,so now its time for me to send a certified letter to Marathon oil ,stating that I have let the lease exspire.Is that all I have to do? How do I file an affadavit of no production.When do I negotiate a new lease with higer royalty ? Do I mention this in the certified letter? Thanks for helping me.Marcella
Marcella, the lease expires according to it's own terms in a few days, your letter is just bringing it to Marathon's attention. The affidavit of non-production is a simple statement that production has not occoured that you can have notorized and record. I did look at 149-95-25 again and there is not even a permit currently. I will have to look up an affidavit of non-production for the exact language, but you should be able to create one yourself. The recorders office is not terribly picky in my experience as long as you leave more than 1 inch in the right hand margin and a 3 inchs plus space for the recorders seal, or you pay an extra dollar or two for a second page for the barcode and seal.
R W Kenedy,Do I add the affidavit in the same envelope.
Marcela, the affidavit should be recorded with the county. The affidavit of non-production will make your legal description visible for anyone looking for mineral rights to lease.
Marcella j.Haman said:
R W Kenedy,Do I add the affidavit in the same envelope.
r w kennedy said:
Marcella, #'s 21837 - 21838 - 21839 - 21840 are on the confidential list without a date on which their confidential period would end. This usually means they are not drilled yet, only permits. All permits for O&G wells in ND start as confidential, the true confidential period does not start until the operator requests it, usually after the well is drilled and there is something to keep confidential. The well that legs into T-148 R-96 section 25 from section 36 is TAT-STATE 14X-36B, operated by XTO Energy inc. Production for this well IP 1743, 10,596 in the month of April, 11,910 in the month of May. If someone is telling you those # wells are drilled, I would call and confirm with the NDIC Oil and Gas Division who will likely wonder why they have not received the paperwork and make a few calls.
r.W.Kennedy,Got my division order for well # 18797 from XTO Energy Co. I first thought division order was for the McKinzie wells.Not so.Thought I would let you knowThanks Marcella
Marcella j.Haman said:
r w kennedy said:Marcella, #'s 21837 - 21838 - 21839 - 21840 are on the confidential list without a date on which their confidential period would end. This usually means they are not drilled yet, only permits. All permits for O&G wells in ND start as confidential, the true confidential period does not start until the operator requests it, usually after the well is drilled and there is something to keep confidential. The well that legs into T-148 R-96 section 25 from section 36 is TAT-STATE 14X-36B, operated by XTO Energy inc. Production for this well IP 1743, 10,596 in the month of April, 11,910 in the month of May. If someone is telling you those # wells are drilled, I would call and confirm with the NDIC Oil and Gas Division who will likely wonder why they have not received the paperwork and make a few calls.
Marcella, it is good to know that you are about to start getting a bit more out of this lease business. The TAT STATE 14X-36B is a great well. Initial production of 1743 barrels 80,279 barrels in the 8 months it has produced and declining only sjightly to 8,976 barrels in September. A plus is that your gas has been sold from the beginning, although it shows no gas being sold in September. Looks to me like it's on a 1280 spacing so your share will be less diluted than in your 2560 spacings. The operator is supposed to pay interest on payments more than 150 days past first sales if you have good title. Be sure to ask for your interest payment.