Just got back from checking drilling activity in the Jennings-Hallett area. Looks like they have completed drilling Of the Carnes 1-6H, just west of Hallett on 06-20N-07E. Also checked on the Jones 1H-21 and Jayne1-21, on the north east edge of Jennings on 20-20N-07E. The Jayne 1-21 was actually drilled horizontally into section 21. Both of these wells have now been completed and all production equipment installed. All of these wells were drilled by New Gulf Resources. NGR is also preparing a new drill pad one mile east of these Jennings wells in section 19. The Jones well is of particular interest since I own some mineral rights in this section. I am wondering how long after completion of a well might one expect to see a division order? How is the oil and gas usually handled? Is the oil picked up by a transport at the site or pumped to a central facility? While any oil could be picked and moved I wonder how they handle the produced natural gas. I would assume that some connection to a natural gas pipeline would be necessary.
nice info Curtis - thanx. Hopefully somebody with experience can address the questions. Iād like to know more too.
In the area Iām closely monitoring there are pipelines being installed to each hole. But Iām not getting info on their purposes. Iām told in Oklahoma the company has 6 months from the 1st day of production to get the 1st royalty checks distributed or there is a 12% interest due as well.
good luck on the new holes.
Larry, when I was checking the wells being drilled in the Jennings-Hallett area I noticed that there was a new pipeline being installed from the new wells west of Hallett back toward Hallett. Part of the pipe had been buried but most was still on top of the ground. I was surprised at the size of the pipe. It looked to be about 6-8 inches in diameter and ended in a clearing just west of Hallett. There is also piping between the individual wells and the salt water disposal well. I wonder if there is a oil or gas pipeline in the area that they intend to connect with.
I donāt know for sure Curtis, but as close to Cushing as that area is Iād bet thereās a few main artery pipelines nearby.
I read an article today that Marathon Oil expects to substantially ramp up their Mississippian drilling in several nearby counties, including Pawnee. I also often read about other large companies needing more oil than gas holes to balance their oil/gas assets, but I see most of the current activity still in gas heavy areas. Being that area is showing more oil than gas and so close to Cushing I just donāt get why itās not getting more rig activity.
Iām new to this group & will try to help. Once your well is completed, New Gulf will have their oil purchaser (Sunoco) send you a division order (DO) to sign. Check the interest they say is yours to make sure itās correct. This is important.
Once you have signed the DO it takes 2-3 months of production to pass through everyoneās (operator, transporter, purchaser) accounting systems & your 1st check will be for more than one month, most likely. The oil is trucked from the well location & IF there is any gas to sell, there are pipelines all over the placeā¦New Gulf uses Keystone (no relation) as their gas transporter.
To spud a well is when the actually drilling starts.
Thanks Nick. I learned yesterday that actual oil production had started two weeks ago. I was told that I could expect a division order by the end of the month. I will certainly check what they claim is my interest. I calculate it to be 1.1%. Doesnāt seem much but would still be a nice check for a 200-400 BOPD well. I would love to know the flow test results but it is encouraging that they drilled a second well into the section to the east and were preparing a new pad in the section to the west.
Curtis;
The pipe back to Hallett is for fresh water to frack the wells with. It comes from a small lake NW of Hallett and is replenished from the Arkansas River.
Andy, I am surprised that they would need such large pipe to bring water for fracturing and that they would be burying it. Water lines to wells near Jennings are usually 2 inch plastic pipe laid along the side of the road to the well site.
Fridayās rig count report showed 1 rig operating in the whole county. Sure wish I was up there and knew which coffee shop the geologists and tool pushers hang out at after work.
Curtis: The pipe was 4-inch, I think. But they are done with it now and have removed it. The Privett 1-12H is the fartherest west well and is producing oil and gas but I canāt find out how much yet.
a nice completion near Watchorn;
PetroQuest Energy LLC; Scroggins No. 1-33H Well; NW1/4 SE1/4 SW1/4 SE1/4 (SL) of 33-23N-03E; 472 barrels oil per day, 1,084,000 cu-ft gas per day; TD 8,735.
We are in 30 20N 5E. Has anyone had any recent news from Red Fork Energy?
Thanks,
Steve
Pawnee: HighMount Operating LLC; Jones No. 1H-36 Well; S1/2 S1/2 SW1/4 SW1/4 (SL) of 36-22N-03E; 402 barrels oil per day, 172,000 cu-ft gas per day; TD 8,368.
HighMount Operating LLC; Mittasch No. 1H-31 Well; SE1/4 SW1/4 SW1/4 SE1/4 (SL) of 31-22N-03E; 102 barrels oil per day; TD 8,425
I am expecting a division order shortly for the Jones 1H-21 located in 20-20N-07E. The well has been on production for about 6 weeks now. The division order should show my decimal interest in the well. Can someone confirm how this is calculated. I and my sister and cousins jointly own 240 acres of the 640 acre section. There are 6 of us so each owns the equivalent of 40 acres. Each 40 acres represents 0.0625 or 6.25% of the section. The lease prescribes a 3/16 royalty, or 0.1875. Am I correct in assuming that the correct decimal share should be 0.0625 X 0.1875 = 0.011718 ? My sister was told she could expect a division order before the end of the year.
Curtis, this Iāve found to be pretty accurate for the online calculators.
http://www.mineralweb.com/owners-guide/leased-and-producing/royaltyā¦
Thanks Alice, I ran the online calculator and it confirmed my original calculations.
Steve There is a well in 28 -20n-5e that tested 240 BOD & 260 MCF. a pooling order for 35 &23 . Also a well in 21 that tester 25 BOD & 30 MCF
Received a division order today from Keystone Gas Corp. for the Jones #1-H-20 in Section 20-20N-07E. This is for the gas production only. Hoping to see a division order shortly for the oil production. My decimal share was exactly what I had calculated. Based on production data from nearby wells, it appears that most of the revenue comes from oil production, rather than gas. I am getting really anxious to learn what the oil production is. Seems that the Tulsa World only publishes intention to drill reports but not completion test results for New Gulf Resources wells.
Curtis No completion on the OCC website yet. Sometimes you can call them and they have it, but have not put it on their web site yet. I will see Monday. I have some more I want to check.