We own a 10 acre interest in Hensen Haven in McClain County 6N - 2 W - 6 1HX . A horizontal well was drilled by BP which underwent SPUD on March 27,2018 - the Cause No is 201801741. We received paperwork regarding a pooling hearing on August 13, since that time we’ve heard nothing. We have called a rep from BP 4x. He consistently says “they haven’t finalized & it should happen soon and you should get a division order soon”. Is this accurate? Is this well producing? What is meant by “they haven’t finalized” - finalized what? When would we possibly receive a division order?
Thank you for your help. We really appreciate the support.
It takes about five-six months to get the final title opinion done. There are about 642 mineral owners in that section! That is why it isn’t done yet. As soon as they have all of them finished, they will send out the division order. The well is probably producing, but both sites are months behind, so I can’t see it. You are supposed to be paid six months after first production, but not to worry. If they don’t pay on time, you get interest. Also, if the first sales date misses the company’s check cut date, it will roll over to the next month. BP just finished a bunch of wells, so they are running a bit behind.
The equation for the decimal interest is:
net acres/spacing acres x royalty x % perforations in your section.
in your case, section 6 is not quite 640 acres due to the curvature of the earth. I get 633.08 from the original plat.
So use 10/633.08 x your royalty x 1.00 (the well is completely within section 6 so 100% of perforations )
If you did not respond to the pooling order within 20 days, they assigned you the lowest royalty bonus pair. Probably 1/8th. If you did respond with a different royalty, then use that.
Thank you Ms. Barnes. For the first time ever we were able to open this website link (can’t do it on our iPhones!).
This has led to yet another question: we have always thought it was an oil & gas horizontal well. The site lists only gas. Does this mean this horizontal is only for gas (and not both gas & oil)? We’re confused in that the rep from BP has implied it was oil.
Wells are usually assigned a gas or oil status based upon the gas :oil ratio. You can have gas with condensate (a light oil), pure gas, oil with gas, or pure oil as actual products.
Go to the 1002A form which is the completion report and you will see that the well is classified as an oil well. It gives the 24 hours test rate, but that is only for that 24 hours. I like to look at the six months production to get a real feel, but it isn’t posted yet.
Go to the OCC well records for the completion. Test
And make sure you are on the right well in Gross Production site. There is a vertical well 1-6 which has both oil and gas. The new well is the horizontal well 6 1HX which doesn’t have any numbers as of today.
Hello, again. Thank you for all of your guidance & support on this forum. It’s pretty amazing.
Today we received from BP (see your earlier responces to our questions about BP), a “Final Order of the Commission” signed on 2/15 & 2/16/ 2019. We’re not clear why we received this or what it means. Thank you in advance for any guidance / insight you can share.
Good morning, Ms Barnes. I’m not sure if the info we provided you is correct: Cause CD No 201801741 Order No 691237
Additionally, if you or anyone else has a phone number to share so we can reach BP that would be so helpful. We already have two ph numbers; however, one number we’ve left messages repeatedly at with no response (because we have yet to receive our royalities from the horizontal well in Mc Clain County -mentioned in our earlier posts) and the other ph # is a gentleman who was a contact # BP gave us early on. He states each time he doesn’t know what’s happening. Super frustrating all around. Then yesterday we received this letter, mentioned in our previous posting here on the forum.
Thank you & anyone else for guidance / direction/ resources.
Those are the final orders for the Henson 6N 2W 1HX that was drilled in 606N02W and 310702W in McClain county. The exhibit shows the splits between the two sections per the final well survey. Now the division order can be calculated. They will run title on both of those sections for hundreds of owners, then issue the Division Order title opinion and then they can cut the checks. You decimal amount will be from the forumla:
net acres / spacing acres (actual) x royalty x % perforations in your section. It is likely that sections 6 and 31 are not exactly 640 acres due to corrections for the curvature of the earth, so even though the well was spaced at 640 acres in each section, the division order will have the actual. If you need a map, let me know. BP had to wait on these numbers before they can pay out royalties.
So use 10/633.08 x your royalty x 1.00 (the well is completely within section 6 so 100% of perforations )