Section 23 Township 23 N
West. I haven’t been in that area in quite a few years. I’m sure it’s all changed dramatically since then.
1west or 2
It is to lease. I’m a little skeptical about it though. I’ve heard stories about some of the damages left behind.
Do you own the surface also? Even if you didn’t lease, they could force pool you and you would have to do something.
Carl-
Chesapeake has a lot of shallow wells in 23N-2W; all around you. They are not very good wells but the new thing going on east of you in 23N-1W are some horizontal wells that Devon Energy is drilling and getting ready to drill.
I think I would wait and see what happens there before I lease anything.
How many acres do you have?
Carl here is a map of Noble County.
ftp://ftp-fc.sc.egov.usda.gov/OK/tech/gis/Web/County_Base_Maps/4103%20Noble.pdf
Click on it and it will show you a map you can print if you like.
Permits to drill for 36-20N-02W TD 10,071 & 11-24N-01E TD 9,500 both to Devon E.
There are permits to drill under 5, 17, 18, 20, -24N-2W, 5 & 7-24N-1E, 9-24N-1W and 10, & 1-21N-3E. Completion report 2-21N-3E, 52 BOD, 22 MCF, TD 8,391
Wells started under 24 & 14 -24N-1E
They are horizontal on 640-acre spacing. Vertical can also be 640 on some other common spacings for vertical are 40, 80, and 160 depending on formation. These horizontals are to the Mississippian and Woodford formation. They are about 5,000 vertical and 5,000 horizontal. They are drilling some wells in Oklahoma now, 10,000 vertical and 10,000 horizontal under 2 sections with one well.
Thanks for the info Ron. Keep it coming. I have a question about the spacing of the wells. These 9,000 to 10,000 foot TD wells you mention here, are they vertical wells? If so, what is the spacing of a vertical well vs the spacing of the horizontal wells?
I know that a Spacing Report was done on Section 23, Township 23N, Range 1W, for horizontal drilling, in May, 2012. Does anyone know if Devon Energy has begun drilling yet? I have mineral rights in Section 24, Township 23N, Range 1W.
Yes, I have leased my minerals. Actually, it was a relative of mine that received a certified letter about the pooling. I only received a letter about the spacing application. Did I not receive the pooling notification because I have my minerals leased?
They should. There was just a completion report filed on a well in 24-20N-1E that tested at 253 BOD & 470 MCF. Have you leased?
I just received notification via certified letter that Cisco Operating has filed for Spacing and Pooling for Section 9 - 20N -1E. Does this mean that a well will be drilled?
Did you say the stakes for the well location are new, or have they been there a while?
Gayla,
The Parnon Gathering pipeline went from Cherokee, Alfalfa County to Cushing, OK. They just got my fence back last week and I’m on the Garfield/Noble line, so they are cleaning everything up and should pull your flags real soon.
Regarding your question about production records at OCC. It usually takes about 6 months before anything will show up. But, sometimes it’s sooner.
You need to get the unit # and purchases # before you can look it up.
If you will call Junior (405) 521-2613 or Donna at OCC they can give you these # and walk you through how to look it up.
You will need the well name and legals of the location.
Also, remember that the oil company only has 6 months from the first sale of the oil/gas to make payment, this date is from the sale, not when the well came in. If they don’t, Oklahoma has a 12% per annual interest rate. So, you really don’t want your check early. Where else can you earn 12% now?
Adam,
The stakes are relatively new. Showed up a month or two ago. Again, this happened just as the pipeline crew was coming through so it didn’t occur to me that they were well site stakes. But the pipeline is done now and after receiving the letter from Cisco, I know they are well site stakes.
I am pretty much just putting two and two together at this point.
Another FYI on the pipeline is that they intend to go back in as soon as possible and lay another larger line beside the first one. So be looking for that to happen perhaps within a year.
One more question from me. How is oil income usually taxed on income? I had someone tell me that it can be taxed up to 80%. I am not a tax guru but I don’t see how that can be. The accountant advised the trust not to spend any oil money before the end of the year. That may not be a problem since there hasn’t been a check issued yet, but I’m pretty sure the first one is going to be a whopper. The trust is in a 15% tax bracket at the moment.
Is there a special tax rate for income from oil or is it just a capital gain?