I’ve just received notice that Castillas is applying to drill new wells and extend some others in Garvin County Section 21 4N4W and Section 28 4N4W. The hearing is set for Sept. 20, 2022. If these are approved, this will be my first time actually dealing with an offer from an Oil Co. I’ve learned a lot reading this Forum but now I feel out of my depth. Any one have additional info, advice? Thanks
Welcome back and congratulations on new activity. The general timeline is as follows.
The reservoir needs to be spaced if not already done. The drainage spacing area is generally 640 acres but can be different for different zones.
The location is chosen and sometimes there is a location exception. The center of the spacing is the starting point, but many companies ask for moving to a more advantageous location often to make room for additional wells.
If they do plan to do several wells at once, then they will ask for an increased density approval.
Forced pooling comes if not all of the mineral owners have been leased. Nothing to be afraid of. Many of us prefer it. If you have not leased, then pay attention to the pooling order as you only have 20 days in which to respond.
The location permit(s) will be approved and drilling can commence. It takes about four-five months to drill multisection wells. They will often drill all of the wells and then come back and do the frac and completions all at once. Saves lots of money. If the wells are successful, then you will receive a division order about five months after completion and then they are supposed to pay you within 180 days after first sales.
So sit back and relax for a while. You will get mailings from the cases when they are decided. I have found it helpful to keep a file with the case numbers in order and then put in the subsequent paperwork by date with the most recent on top. Read them and you will find out what is going on.
You can watch the progress by going on the OCC wellrecords site. Here are some helpful links.
Pending OCC cases at the following link: https://case.occ.ok.gov/ords/f?p=1003:202 https://oklahoma.gov/occ/court-dockets/electronic-case-filing.html
Actual cases if you have the case numbers: http://imaging.occeweb.com/imaging/OAP.aspx
Docket proceedings: http://www.occeweb.com/ap/docket_results.html
Well activity: http://imaging.occeweb.com/imaging/OGWellRecords.aspx
Production: https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
Deeds, probates, etc. -www.okcountyrecords.com
Thank you, for the welcome and for all the info & links!
Yesterday I received the information from Charles Helm, Attorney at Law about relief sought of Increased Density for section 28 for 3 Woodford wells. Another larger package had applications to drill 4 multiunit horizontal wells in sections 21 and 28. They are the Mekkeller 0404 21-28 1WXH, 2WXH, 3WXH and the 2MXH (Mississippian/Sycamore). The 3 Woodford wells will be split 65/35, 65/35 and 55/45 in favor of section 21 and the 2MXH will be split 60/40 in favor of 21. It looks like these will be drilled north to south. Section 33 and 28 have 1 producing well and 4 others recently drilled and 6 more on the drawing board that are going south to north. This may be working around a fault running NW to SE.
Thank you Lyndon! That’s more info than I have (I’m in Sec 21). Now we wait?
Yes, now we wait. You can join the hearing on the 20th if you want via zoom. I did that back in April and the ALJ asked who I was and what was my interest. She then had Casillas’ attorney get my phone number so he could call me to let me know when the docket relative to me would be discussed. The attorney called me at lunch and answered my questions and I then joined the call at the appropriate time and listened to the proceedings. It was all pleasant and informative. In your original post you mention dealing with the oil company. I don’t think you will except filling out a direct deposit form and deciding to go paperless. Your mineral rights are most likely “held by production” (HBP) which means you will receive 12.5% royalty. I used to have maps of the Purdy Hart and Purdy Springer units that define what is HBP and almost all of section 28 is in those two units. Do you presently receive checks from Daylight Petroleum and Vitol?
Here is the link to the Unitization scanned documents. You can enter your section, township and range or “Purdy Hart” or “Purdy Springer” to see the past history.
My interpretation, limited as it may be, of the OKC Docket results is that these CD’s have been put off until Oct.4.
I do not but have found them in Unclaimed Property. Jumped through hoops to get that money and now I have a Division Order with Vitol. I’ve just received a letter from Plainview Oil Company offering to buy my mineral rights in Section 21-4N-4W. Do you know anything about them?
Plainvew has been around for a long time. They made an offer on 21-4N-4W because Casillas has multiple pending OCC cases for increased density and several more horizontal wells. The hearings were supposed to be earlier this week. Personally, I would not sell if there were pending horizontal wells. Offers to buy tend to only be for the value of the current producing wells.
Thank you! I thought so but the confirmation is very welcome.
I just want to say that you should be currently receiving royalty payments from Daylight Petroleum as well as Vitol and before them Merit. M_Barnes could you please post that link for the Purdy Units? It didn’t seem to take before.
OGUnitization Sorry, sometimes it doesn’t “catch”.
If you type in Purdy you will get everything that is scanned. If you put in your section. township and range, it will narrow down a bit. Use leading zero if single digits.
We were getting paid by Merit at one time. Nothing currently from Vitol or Daylight. I’m going to look into that, thanks.
Thanks so much! I couldn’t see the link you referenced a few days ago, thought it was just me😉.
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