M.C., Ask OCC if the first Miss Lime well in section 17-18N-01E is producing. The surface location is in Section 09-18N-01E
Here’s OCC record of 2nd Miss Lime well in Section 17 http://imaging.occeweb.com/imaging/OGWellRecords.aspx
Martha, thank you for your reply. I have minerals in a couple Sections in 18N 1E and a few Sections in 17N 1E. They have been after me since Jan. of this year on the Sec 7 minerals. I have been told it is for AEP but who knows. It seems they are really after Sec7 18n 1E which is a Devon well ? I don’t know what is going on there. Plus I have a 1/5th lease which they want. In the offer they have “before language” about any money before the mineral sale date being theirs not mine. Is that a common practice and I do not know how to determine if they owe me any more than they have paid me other than maybe the late production. This stuff is complicated. Is it worth it to chase it.
I would never sell all of my minerals because like you I believe they are very valuable. However, due to some health issues and time constraints I am considering selling some to raise some money.
Also, as stated earlier, AEP is changing the spacing in sec. 27 18N 1E to 640 and I assume will start drilling at some point. This is the only parcel that I have a 1/8th lease on, which is HBP by the Phillips well. I do not know what the spacing is on that well.
I am considering selling some of each but I don’t know. Is one better than the other or does it matter.
Also, thank you for the tax commission link. I was able to print the production reports on those wells.
Steve, Research ‘Continuous Petroleum Accumulation’. Here’s an example of Analytic Resource Assessment Method for Continuous Oil and Gas Accumulations which was used to compute undeveloped petroleum recourses in two test assessment units: (1) Bakken Fairway Continuous Oil, and (2) Wasatch (East of Green River) Continuous Gas. OK oil and gas companies have performed complicated basin assessments, seismic tests, and technical analysis costing Thousands, spent additional Billions on start up costs and Millions on leases, then drilled Thousands of Wells costing 3 to 4 Million each in Payne County OK, and they still need to drill more wells before they can start the Enhanced Recovery Techniques which will help produce 30 to 60 percent or more than conventional methods used before horizontal drilling was perfected. Oh, it must be well worth it and that’s why people want your minerals. http://pubs.usgs.gov/dds/dds-069/dds-069-c/REPORTS/Chapter_6.pdf
Greg, I would never give anyone the right to claim my royalty interest payments. You can verify all your mineral ownership at the Payne County Clerks Office (405-747-8310) The clerks are nice, so give them a call and they can tell you what you need to do. When you are 100% sure of your royalty interest, send Devon a letter stating their royalty interest check is not timely, politely state they owe the statutory 6% interest and immediate payment of any and all production royalties due from backlog and current production sales included and ask for a copy of the calculations and attach a copy of Oklahoma §52-570.10 as set forth in my earlier reply. I’m sorry you are in bad health. You might want to consider asking a relative or good friend to help you with all of this. I’ll try to find the production around you. 3 Woodford wells and 1 Mississippian per section is what I’m hearing is normal for our area, so you will be selling at a disadvantage
Wow Martha the details you provide are impressive and I go to all the links you send - in addition to it being a matter of money it’s interesting to get the whole story. So in short you think Payne is or will be productive in all sections (I’m 6-18N-4E, 6-2mh) ? Thank you doesn’t seem like enough.
M.D., thank you. The case number is 201404692. I live in FL and it is challenging from here.
Greg, While operating a trust and a little O/G business, a company tried to buy minerals that I didn’t know I had. My records indicated a lessor amount of mineral acres than what was recorded on the books at the court house. The clerks office can send you copies of your minerals in each section.
Your minerals are in an old oil gas field. In 2013, Mid-Con had transfers of wells in Section 22 & 27-18N-01E. No one buys old wells to produce the old wells, they buy them for lease rights to future wells. http://imaging.occeweb.com/OG/Well%20Records/0306A9C4.pdf
Here’s new wells: Surface location is Section 09-18N-01E, but it’s producing from Section 17-18N-01E (2MH) 2nd Miss horizontal well 637 bbls 255 Mcf. Note: that’s the second Miss Lime well in section 17 and it’s very good production.
http://imaging.occeweb.com/OG/Well%20Records/1DD20D7C.pdf
Here’s AEP’s Permit to Drill proposed well in Section 08-18N-01E surface location will be in Section 09-18N-01E http://imaging.occeweb.com/OG/Well%20Records/1DD28639.pdf
On these findings, I simply can’t advise you to sell any of your minerals. It’s against my religion.
Greg, if you can get me the case number off of the application I can call the occ and find out what the status is.
I will let you know tomorrow. This information is very important for the mineral owners that are on 320 spacings in Payne county. We are few and far between. Thank you!
Gregg, You asked what does this means: “Hopkins well it says 6 horizontally drilled, Reduced Rate, Rate 1%, Start date 05-2013, term month 49, 06-2017 Exp Date*.* the incentive may expire earlier than the allotted term, because pay off was reached”
Answer: It’s the 1% tax incentive the State of OK gives to the operators for drilling horizontal wells and it expires 06/2017.
“The incentive reduced Oklahoma state taxes on oil and gas production to 1 percent for the first four years of production”.
https://stateimpact.npr.org/oklahoma/2014/05/23/oklahoma-legislatur…
Martha, I read the Analytic Resource Assessment Method - most of it was over my head - but I guess you’re essentially saying Payne County petroleum resources have great potential. Thanks for the research.
Steve, The Analytic Assessment shows that the operators didn’t just guess at developing our area’s oil/gas. It took years of research and lots of money. You are right, the assessments are extremely hard to read and understand. But, money talks.
The family leased these same rights for a pitiful bonus rate in 1997 and they’ve just sat there for all this time, glad to get all this attention. Thanks
Here’s what happened between 2004-2013. The map shows Woodford wells only and doesn’t show all the wells drilled since the beginning of 2013. Thousands of Mississippian wells and Woodford wells have been drilled. In 2013, Devon alone drilled at least 350 in Payne, Logan and Noble and states there’s more to come.
http://info.drillinginfo.com/unconventional-play-development-in-one…
http://www.mineralrightsforum.com/forum/topics/new-oklahoma-oil-pla…
http://newsok.com/devon-exploring-new-oklahoma-oil-play/article/392…
Can anyone post what prices they have been paid for oil and gas on their recent royalty checks, thanks
Martha, Thank you so much! Your expertise is greatly appreciated. We have always been told “never sell your minerals” by my husband’s relatives who have various small holdings in western OK.
Greg, Yes, it’s the old Paradise field. There could be 4 to 8 wells or more per section. No one has a crystal ball, but discoveries of the Meramec Shale and, most recently, Springer Shale adds complexity to our area and more wells. However, they have developed a new frac technique called upsize frac that increases production from fewer wells. We have to get your minds rapped around future production amounts and not the number of wells. First they drilled the test wells, then they drilled around the faults ‘sweet spots’, next they will drill the infill wells (meaning more wells per section), then they will use enhanced recovery methods and finally you will see full out maximum production. Some say this will take about 4 to 5 yrs, but with the new up size fracs it could be much faster. Some reports are claiming 2017. http://www.fool.com/investing/general/2014/02/23/why-do-so-many-com…
Rob, Sometimes verticals can be used for the Miss Lime, but not for the shale and Miss has larger spacing than Woodford shale. However, OCC allows spacing to change according to field developments. There will be clusters of wells called ‘cells’ in a very large areas that included many townships and ranges.
30 - 19N - 4E
My siblings and I have inherited mineral rights in Payne County - 30 - 19N - 4E, and we know virtually nothing about mineral interests. Our leases are held by AEP - Woodford, and we are receiving royalties on one well - Matthew 30 - 1MH. We don’t know if that’s the only well in the section, or what the well’s name means. I have learned much by reading many great posts in this column, but any information about plans or possibilities for this area - or general advice - would be greatly appreciated.
Thank you, Lindy Adams
Melinda, The wells are named according to the last name of the person who owns the surface location where the well was drilled. Matthew 30-1MH is the first (1) Mississippian Horizontal (MH) well. It was drilled from a well pad in section 31, but is producing from section 30. The completion report shows it to be flowing 200 barrels of oil per day and 214 Mcf of gas per day. Your first check should have been 6 months from the 1st Prod Date: January 28, 2013. AEP will probably drill more wells.
http://imaging.occeweb.com/OG/Well%20Records/1DD0EB1E.pdf
http://oilindependents.org/the-mississippian-lime-not-new-but-reinv…