Since I received the division order on the Thompson well at section 31 4S 5E Marshall county I contacted them as to when the first check would be released. They said hopefully at the end of March check mailing. It is interesting that on the OCC website they don’t show any oil production, but Ron told me it was producing 72 bopd as reported on oil-law. I wonder why the OCC does not show this? I have been figuring what the first check was going to be, but differing numbers makes it difficult. Any ideas? Also, on my Ross well in section 29 Johnston county, they are drilling 3 more increased density wells on it. Now when they do the increased density wells, do they just move a few hundred feet out and drill another well and try to hit the already drilled horizontal shaft? I don’t see how they could be so accurate to hit a 5 inch horizontal hole that far beneath the ground. Technology advances for sure. Anyone care to elaborate on these wells? I would appreciate it. Tom
Mineral right acerage / spacing unit or say 20 acres / 640 acre spacing, then what are your royalties, maybe 3/16. Therefore, 20/640 = .03125 x .1875 = .0058593. This would be the cut of all production each month.
Normally they will drill all three well SHL about 10 to 20 feet apart. The BHL must be 600’ apart or they need a Rules Exception. The wells are sometimes drilled in reverse order of the spuding. #2, #3, and #4 will be spuded, #4 will be drilled, then #3, and #2.
If any of your wells have been producing for more than 6 months before you received your royalites, then you are entitled to 12% Statutory Interest from the first day of production.
It looks like XTO is going to own you some interest on the ROSS well.
I think they should be in the ballpark of the production numbers you have for your first well. Quite a few things come into play though, such is how deep they drill before they go horizontial, they must keep the well sperated by 600’ unless they get a Rules Exception.
There are companies, like Cactus Drilling and Felderhoff Bros that have rigs that move on there own power. They only move about 12" to 16" each time, but they can move between wells. These rigs are sometimes called “WALKERS”. When they are drilling multiple wells they are usually about 10’ to 20’ apart, so on a map showing the spacing they SHL will appear to be the same. On the Drilling permits it will state how far the SHL is from the spacing boundery, like so many feet from the FNL, or FWL. These are From the North Line or From the West Line.
Typo, it should read “…going to owe you some interest…”
I could find the THOMPSON 1-31H well. Production began on April 12, 2012. A person can ask for there Satutory Interest at any time. The 12% interest is Oklahoma State Law.
If there is a well already in the spacing unit, they must ask for increase density.
I noticed that a well takes about 50 days or so, but then they need to do the fracking and add the tanks and all the piping. My guess is it could go 75 days to complete and start to produce at the earliest. So think out about 8 months before you see any money, and it could be a little longer.
Another item I forgot to mention, is there is a law that limits the percentage a well can produce. If the operator wants to produce more then the operator must ask for a Rule Exception for ALLOWABLES. The ROSS well got 100% ALLOWABLE.
The spud date really doesn’t mean much. Yes, they can spud a well and stop right there. There are 4 wells, WALLS 1, 2, 3, & 4 over in Carter co. that I have been keeping an eye on to see what the completion has to say.
They where spuded back around May of last year and I have not seen a completion report yet.
If you are going to daydream here is one from Southern Kansas, just West of Wichata.
Seem a wheat farm lease 1,000 acres at $500 (bonus) and 1/4 royalties. The company like what he has, so much, much that they offered to lease the other 1,000 acres at $1,000(bonus) and 1/4 royalty. So he gets 1/4 of everything produced. I bet he gets a new John Deere.
Daniel Could you give any info to Cooper on his question. " The main question I have is how much more the horizontal fracced wells drop off in production after the first year."
That is a difficult question. First I don’t know what the choke is set at currently. The completion report listed the choke at 37/64, but it could be anything now. The completion report listed 130 bopd and 1755 mcfd, in December the production averaged 26 bopd and 3.5 mcfd. The other well I have was shun-in during December, so there are no numbers available.
They shut the well down. XTO said they had to install a GAS LIFT. This is done to move liquids out of the well when there is not enough pressure in the well to lift the liquids. These liquids can be oil or salt water, which the latter I think is the case.
I ask a similar question at the OCC conference last year and they did not have an answer. Sometimes the data just does not get entered into the system. One of my wells never showed any production, so I don’t bother looking at that info. I just look at the info from the check.
In the first box, DRILLING PERMITS = 1000, SPUD REPORT = 1000A, and COMPLETION REPORTS = 1002A.
If you want to use the location, use something like 3004S05E, range and township require 3 numbers.
API for Marshall is 069, JOHNSON is 095.
I usually do not enter the well name because they sometimes they do not match.
Be sure to enter a date range or you will get all the date from back to about 1900. I am using 1/1/2013 and 12/31/2013. The 12/31/2013 will provide data the latest data. The information will be displayed in Section/Township/Range order, but a click on the top of any column will sort the data by that column. If the first date column is selected, it will put the data in accending order, oldest to newest, if it is selected again it willl change the data from newest to oldest.
To access all the Sectons in one Township/Range just use the “%” for the section, ie, %05S04E - this will give you all the sections in the T/R.
With rigs at a premium now, I think putting more than one rig on a pad would be very unusual. That is one reason they came up with the Walking rigs. I thought I saw at estimate one time that had the cost of moving a rig onto a pad at about $100,000.
Also, here is a website from the OCC that list the coming Docket for the Judical items, like Increase Density, Location Exception, Rules Exception, Pool, Spacing, etc.