Mineral interest in vertical well not included in horizontal well?

[Gigi1971]

I asked this similar question a few months ago but wondered if someone could please give me a clearer explanation? The response from the operator was limited.

Currently being paid on mineral interests in two wells in Sec. 1, T5N, R6W, Grady County. Mineral deed is for NW4 of SE4 and SE4 of SW4 of NE4 and N2 of SE4 of NE4.

There is a third (horizonal) well - Brandon 12-5-6-1H - and the general lease legal is the same. It also appears that the horizontal surface hole lease includes the SE4. When I contacted the operator, Camino Resources, they said the well was in section 12, which is the bottom hole lease legal, so that is why my mineral interests are not included.

I’m just hoping one of the many experts on this forum could help me understand how the process works, as I am guessing there will be more horizontal drilling in Grady County.

Thanks so very much!

[M_Barnes]

You can only be paid if there are perforations in your section. Brandon 12-5-6-1H has a surface location in section 1, but no perforations. The well goes south into section 12 and all of the perforations are in section 12.

[Gigi1971]

Thank you M Barnes for your very helpful explanation!

[M_Barnes]

It is very common to have a surface location in the section “next door”. It takes several hundred feet to “make the turn” into the proposed reservoir, so operators want to put the turn in the unperforated section and put the perforations in the “horizontal” part of the hole once they clear the required easements at the section boundary.