I own mineral rights in Tobacco Garden 150/99/Sec 9 (25 mineral acres)
and 150/99/Sec 10 (10 mineral acres) The leases are being held by
production. For December and January the production in sec 9 has fallen
of to just a few days. I know wells are taken down for maintenance about
once a year. Denbury Resources sold us to XTO Energy effective in December.
I have tried to get information from Denbury and XTO to no avail. I didn't
question Decembers figures, but now January is worse. I would just like
to know the reason, but can't get anyone who can tell me. Last week my
sister received an offer to buy her rights for $10,000.00 per mineral acre.
It caught her completely off guard and I must admit it did me as well.
We have never entertained selling our rights. We have children and grandchildren.
But what kind of speculation could be behind this elephant in the room.
Especially with the production dropping off like it did. The figures for February
won't be available until the middle of April. I call the Industrial Commission
and they very graciously give me the figures and how many days production.
If anyone has information to share that would help shed some light on my issue
I would certainly appreciate the input.
Deloris, you have some strong wells in a very good area. Your well in the 4-9 spacing seems to have had a spill from a tank overflow. It's North Dakota and they are barely getting used to the idea of spring on a theoretical basis. They probably couldn't run the well until the tanks were emptied and the spill cleaned up.
I would have no worries unless you were counting on the royalty from that well, which is something one should never do. Plan what you will do with the royalty but never count on it being there because things do happen. That particular well had a great 10,103 mcf gas production in Nov when it was a year old, it is far from being played out.
Deloris, Newfield is drilling two new wells just west of you in addition to the existing well/s. there are other spacings around you with three wells per. I think you are about ready for some new wells yourself as your spacings are very good candidates for additional wells. Whether your offer accidentally coincided with this shut down or someone was trying to take advantage of the situation, nobody can say for sure but I can say for sure that they want to buy before you get another two to four wells because after you get them I doubt you will have any desire to sell. I believe that if you are patient, that things will work out. Remember that when you get the new wells your existing wells may be shut down for a time. I hope this helps a little.
Thank you so much. The information you put forth confirms my suspicion that someone with
information was trying to catch my sister off guard. It happened to a lessor degree in 2011
just before we were sent division orders for the wells in 9 and 10 began to come on line.
Again, thank you for the information. Invaluable!! Deloris