Payne: Devon Energy Production Co., LP; Leach 16-19N-1W No. 1WH Well; NE1/4 SE1/4 SE1/4 SE1/4 (SL) of 08-19N-01W; 172 barrels oil per day, 783,000 cu-ft gas per day; TD 9,983.
Devon Energy Production Co., LP; Leach 8_5-19N-1W No. 1WHX Well; SW1/4 NE1/4 SE1/4 SE1/4 (BHL) of 05-19N-01W; 135 barrels oil per day, 188,000 cu-ft gas per day; TD 10,977.
I notice that the well we are receiving royalties for (26-18N-04E) has a completion report for the surface well in 26 and another completion report for the end (23-18N-04E). Each completion report has different test production data. If it’s just one well, why two reports and different totals for BOD? Thanks for any info - I know the answer is probably obvious but I can’t figure it out.
Here’s a good one for you experts. Background: My two brothers and I own equal NMA amounts in a Payne County interest. The land man who arranged the lease stated we owned a certain number of NMA and then a month later stated we owned a higher number of NMA. The bonus check to lease was paid on the higher number. Neither the DO nor the lease mentions gross or NMA, so we have assumed we owned the higher NMA figure. One brother just sold his share and was paid on the lower number NMA. My brother and I have received offers to buy now and then and are fishing just to see what happens but now have important concerns: is it possible for an owner to sign a deed and after the buyer does a title confirmation, without notification or a chance to rescind or re-negotiate the deed, the owner has to accept whatever figure the buyer comes up with in the title search? Thanks for any help you can provide.
Some info on CO2 Enhanced Oil Recovery. Infill drilling is starting in Payne and EOR comes after infill. Sellers beware, there are many more wells to be drilled. http://www.sec.gov/Archives/edgar/data/1346980/000119312510024498/dex993.htm
Steve, Depends if it was an option agreement or a purchase agreement. http://en.allexperts.com/q/Oil-Gas-3147/2012/2/mineral-sale-agreement.htm
“The Woodford shale is found under much of Oklahoma, in West Texas, Kansas and southeastern corner of Colorado” http://pubs.usgs.gov/of/2011/1242/
I have heard that these wells in Payne County produce a lot of water and fluids, and there are only so many injection wells in the area to use for this. If true, which I do not know, what happens to the cost of disposing of it? The oil companies just pass it along, don’t they, meaning less money for the royalty owners. Could this slow the drilling process in Payne over time?
Thank you, Martha. You said our area is a high net back. What does that mean if you don’t mind?
Thank you, Martha, for the link. I sent a question to All Experts regarding a purchase offer (not option) and whether after a title search they can pay for a lower number of NMA than stated in the offer without notifying the seller.
Thanks again.
Greg, it’s the location of the injection wells that’s important. They are injecting into the Arbuckle Lime on the down side of the faults and there are many down throws. Also, produced water disposal pipelines can be profitable as they skim at least 2% oil and capture precious earth metals and rare elements as well. Our area is a high net back, so drilling might slow down if we have sustained extremely low oil prices and a continued ban on oil exports. However, the U.S. is on a sure-fired mission to become energy independent and Oklahoma operators would be foolish to sit idle while operators in surrounding states continue massive infill drilling programs in the contiguous basins.
Greg, if royalties, production, and transport costs equal $40 and oil price averages $90, the operating netback for operations would equal $50 a barrel. Then, exported NGLs can use Brent crude pricing, which is now $90.21, while our WTI crude price is $85.82. Also, the methane gas, instead of flaring it, can be used to run converted drilling rigs and frac units, which increases netback. Read for more info http://www.mineralrightsforum.com/forum/topics/oil-barrells-per-day-vs-ngl-s
Where do I find the results of a pooling hearing that occurred on October 7th?? How long after that hearing, (I figure will ok the pooling), will it be till they send offer letters/choices be.
The orders come out about 3 to 5 weeks after they recommend it at the hearing.
With the price of oil dropping fast, will the oil companies slow down in drilling in this area or lower the price being offered for minerals?
Thank you Martha, so are so very helpful.
Thanks Ron.
Devon has a well in one of my sections, do they have to notify me of increased density if they want to drill more wells? Martha, again thank you so much for your information on this site, you are very helpful to all.
Greg, yes, you will be notified of increased density. Infill drilling is complex and methodical. They drill, monitor pressures and production, then drill more wells if needed. It takes time.
Greg, they always find some reason to offer mineral owners less and drilling always slows down at the end of the year. Our family O/G business didn’t drill at the end of the year unless we needed more tax write-offs. Holidays are a big time of year for O/G companies; they have unbelievably lavish Thanksgiving and Christmas celebrations paid for with profits from mineral owners not knowing the true value of their minerals.
Oct 16, 2014 Bloomberg: Baker Hughes’s CEO Martin Craighead reports on low oil prices, below $75 “for a few months” could cause slowdown, but “The returns are still quite attractive,” Craighead said. “Right now it’s full steam ahead.” http://www.bloomberg.com/news/2014-10-16/baker-hughes-oil-price-below-75-may-slow-spending.html