Your calculation looks right to me, providing that you own 100% of the mineral rights in the 80 acres. You might want to call them about and ask for an explanation.
I called them today, and they said I only had 80% of the minerals. Without doing courthouse research I wouldnāt know for certain.
New Gulf Resources seems to have disappeared from the drilling scene in the entire state of Oklahoma. Iām not surprised that they are trying to sell their Pawnee County wells. They issued a news release last year saying that they were then drilling 1 well/month and would be expanding to 2 wells/month in 2013. They also bought leases on thousands of acres of state owned land. However, their last intent to drill notice was on Sept. 21, 2012. I think their Pawnee County wells were a disappointment, especially the 2 just west of Jennings. Even the better wells, west of Hallett, have shown rapid production declines. I donāt know where they are now concentrating but it sure isnāt in Oklahoma.
They did tell me New Gulf is concentrating elsewhere and are trying to sell the Pawnee County wells.
I received a Gas Division Order from Keystone Gas Corp two weeks ago on the Privett 1-12H well.
Production reported on the Privett 1-12H:
Month Total BBL Daily
I think the Privett produced for about half of November, and I had heard from a company guy it was making 150 BBL/Day, so I only divided Novemberās number by 15 days and got 153 BBL/Day. If you chart those numbers, it looks like the production could level out around 30 BBL/Day but that is really speculation. Waiting on the Oil Division Order.
Andy, The production result, that you have shown, look good. I think that most of the production decline occurs during the first 3 months. Production results for the Jones #1H-20 located, at 20 20N 7E near Jennings, leveled out in the 4th month. Fortunately for you, the Privett 1-12H is much more productive than the Jones well. Your first check will probably be for the first 3 month of oil production which should be about $10,000, based on your decimal ownership and 3 months of production.
$10,000 would be really nice. I can calculate everything except the price they are geting for oil. Now if it will just level out at 30 BPD or above! Earlier I figured the gas it was making should be about equivalent to 5 BOD, I didnāt write it down, and canāt remember how much gas it ws making, but it was quite a bit. I also donāt know if they are charging, and how much, for gas processing. I think they have the right, in the lease, to charge some of the gas delivery and processing charges.
Andy, My last check form Sonoco showed that they were getting an average of $92.83/bbl for the oil. Keystone Gas Corp. reports a price of $3.18/mcf for the gas bought. They are not charging for gas processing but do deduct about 7% for the gross production tax.
WOW! $92.38/bbl would not indicate much if any discount for Cushing oil trapped because of limited pipeline capacity. I was afraid it could be $10 less than the nationally quoted crude price.
Vicki: I calculate $9,406 net to me on 64 acres, or $147/acre for the first three months of production. After that, it will probably be $25/acre per month, or less. Your dad was probably calling about the Gas Division Order. We havenāt seen the Oil Division Order yet.
Just got the oil division order on the Privett 1-12H, so I checked production for February and got a nice surprise:
57
Production for Feb was greater than Jan. Perhaps they missed the last week of Jan and got that amount on Feb, but even so, the decline is much slower than it first appeared.
Does anybody know who the gas purchaser is or the capacity of the lines? Havenāt seen many east of Pawnee
Keystone Gas is the purchaser for Privett 1-12H. I received my first gas check for Nov-Mar, and it was larger than I expected, about $36/a. Donāt have any idea what the pipeline capacity is, but it looks like a 4-inch, but may be 6-inch, I didnāt pay much attention to it.
Iām sure itās old news for some but, I was just emailed that New Gulf has their 61,000 net acres in Pawnee County for sale.
Robinson #1H-1 (1-20N-6E) Monthly sales volumes
Mo/Yr BOPM MCFPM
07/2012 5978.3 6042
08/2012 5505.37 14733
09/2012 3209.48 9502
10/2012 2112.3 7687
11/2012 1053 4847
12/2012 1816.69 6231
01/2013 1274.31 5342
02/2013 361.32 2362
03/2013 1408.02 6835
Chad,
Welcome to the Mineral Rights Forum and to the Pawnee County Group. Thanks for the lesson on the Mississippi play. Sounds interesting and possibly not so profitable in the long run. Experience is a good teacher. Thanks for sharing your experience and thoughts.
Clint Liles
Nick:
Thanks for posting the Robinson 1H-1 results. Thatās a lot more variable than I was expecting, and a whole lot better than the Privett 1-12H. I hope somebody will buy their acreage that can do something with it. Part of it may be skill of the operator.
To let you all know who the newest member to your forum is:
I am a geology student at OSU and a flowback operator for Foster Energy. I am currently flowing for Chaparral, but have brought in over 30 Mississippi wells for various companies over the last 2 years. I know itās not what many of you like to hear, but this Mississippi play has as many negatives as positives. It has destroyed small independants ability to hunt the type of wells that can make you rich, like the old fields you drive by. They tie up land with the large spacing. Unless you own majority interest in the section, you may only get 4%. Sure they pay good bonuses, but you arenāt seeing many Miseners. I can count the great Mississippian wells on one hand. Most come in around 200 bbls/day, a few over 500 for a few monthes, one in 20 at 900+. . . They are expensive to maintain, high operating costs. The Mississippi is very corrosive. In 5 years all this equiptment will be approaching junk status, just as the rusting hulks you see scattered around Enid and to the south in the Sooner Trend. A good Mississippi well will make 100,000 b/o vertically. Itās all about the geology. These days computers are doing the geology and engineering, so you wonāt see many great ideas developed over several sections like in the 50ās. Some of you will do really well, others will just be tied up waiting. Eventually I hope some of this land comes free after lease misers like Devon and the likes takes a salt water bath. In a couple of years hopefully, I would like to help develop your Red fork and Cleveland sands, and hopefully make a few of you healthier. Thanks
This is news to me but I am not surprised. NGR bought a large amount of state owned acres a few years ago and announced, last August, that they were drilling 1 well/month and would be ramping up the drilling rate in 2013. However, they have not started a new well in Oklahoma since September of last year. I suspect that their production results were less than anticipated and that their better wells have shown a rather rapid production decline. These wells are expensive to drill making the economic pay out rather long. Looks like an attempt to cut the losses of their financial backers. This was the NGR news release from August of last year.
http://www.ugcenter.com/US-Shales/New-Gulf-Resources-Ramp-Mississipā¦
What a difference a year makes.
looking from afar it looks like Pawnee barely got wet but Cleveland and towns around it got deluged the past couple days. Hope yaāll are doing ok.
also looks like Highmount and Cummings are about the only active companies doing horizontal in the county. hopefully another formation re-sparks some interest soon.