Oil wells okay


#1

Just got some paper work. Looks like on Oct 2 Continental, was granted permission to sink 4 more wells. When could I expect a check of these? I know it takes a while. I am not use to the timing of these things. We are lucky. While the money comes in handy. we could get by without it.

Also noticed a rig had been ordered to shut down after an earthquake. What impact will that have on the rest of the area.


#2

It would help if you post the section, township and range in order for us to answer more accurately. The short answer is probably at least a year.

EQ shutdowns are generally very specific to location and what the activity was at the time.


#3

Sorry about that. East Half of the Northeast Quarter (E/2 NE/4) of Section 31, Township 7 North, Range 5 West, Grady County, Oklahoma; AND West Half of the Northwest Quarter (W/2 NW/4) of Section 32, Township 7 North, Range 5 West, Grady County, Oklahoma.


#4

Looks like you will have three additional wells in sec 31 which will extend into 30. You should have already been in payment for the Triple H 4-20-31HS which had first sales on March 24, 2018. That well is a good estimate of the time frame. It spud on Oct 22, 2017. Drilling finished on Jan8, 2018. Completion was Mar 17 and first sales were March 24. Takes about five months to do the division orders and statutory payment is six months after first sales, so should have been paid by October. It may have missed the cut checks date for September. (If you are not being paid, they owe you interest.)

Triple H 5-20-31HS says it is active as of 3/24/18 on the OK Tax site, but I don’t see a completion record on the well records site yet.

Triple H 2-30-31HS was drilled from section 19 and was active as of March 24, 2018.

Triple H 3-30-31HS was drilled from section 19 and was active as of March 25, 2018. I don’t see a completion yet.

Since five wells were drilled, they may be behind on the division orders.

The new wells for 30-31 have a surface location in 19 and are called the Dyer 3-30-31XHW, Dyer 4-30-31XHW and Dyer 5-30-31 XHW. Wells 4 & 5 have already spud in late September, so you might be looking at August-September 2019 for payout.

Sec 32 has increased density for four more wells. Really nice map for 30,31,29 and 32 is part of 201807347 exhibits on the OCC OAP site. http://imaging.occeweb.com/AP/CaseFiles/occ30142368.pdf

Two may spud in sec 5-6N-5W with the rest in 32. Simms 5-32Hw has spud 9/29/18. Simms 6-3229-XHW has a permit as of Oct 4. Simms 2-32-29XHW and Simms 4-32-XHW have both spud from sec 5 in late October.

Since Triple H may hit payment late in 2018 and the other wells in late 2019, you would be wise to contact your accountant to plan ahead for any increase in tax payments.


#5

Thanks. Checks had been running about $100. Every month. Late August I got $7,000. Each month after around $1,200. Wish these would have produced earlier. Mom and dad could of used the money. Being new to this, I can not even read the information I get monthly. We are fortunate. We are retired. We have a stable monthly income, few bills. The mineral rights money is just savings, or an extra vacation. Thanks.


#6

I am sure your folks are happy that you are being blessed now. Sounds like you are wise in your outlook. Enjoy the “extras” and have some fun!


#7

I own rights in Section 33 4N/6W. Has anyone heard of any plans for Continental to do more drilling in my area?


#8

You might want to look up the discussion on the Bovine well. They will probably evaluate that well and then decide. Nothing new is posted at the OCC.


#9

Can you tell me in plain language bhow many Wells are on the property and how many are in the process? This week I have been swamped with mail. It looks like continental is sending out the same information multiple times. Thanks.


#10

gdjoslin:

Suffice it to say, you will have multiple wells in multiple different zones. Easiest for you to just cash the checks.

I’ve been in this business for 30+ years & even I get confused as to all the wells, zones, etc in this area.

Todd M. Baker


#11

Look on the paperwork they are sending and they have maps. You can count the wells. I worked most of them out for you in the above paragraph.