Its 25 Thousand dollars a day for Rig 41 to stand by…wow
Bob, It’s good for all concerned. There are many sections affected by the fault and the reservoir beneath all the sections is full of oil and gas. It would be grossly unfair to let a few wells in a few sections capture all the production from the large reservoir.
Bob, The wells are deeper in sections 23 and 22 than the wells in 15 and 14, indicating the fault. Meaning the formations are slightly mis-aligned with the other one in the sections to the south of 14. AEP needs to get the wells drilled in 14 to gain the increase in production which was achieved when Devon fracked into the fault in section 22 & 23. So, AEP hired a drilling rig to stand by and be ready to drill asap . Then, AEP filed an emergency order claiming loss of money due to the rig on stand by. Don’t worry, AEP is trying to get your wells drilled asap.
Bob, Here’s a map that shows the location of the wells andchange in depths. http://imaging.occeweb.com/AP/CaseFiles/occ5177073.pdf
Bob, That fault is a large shale slip, so the oil and gas is trapped in a deep little pocketed area. It’s up to the OCC to make sure these multi unit wells are located and produced according to the Horizontal Shale and Development Act to prevent waste and to protect the correlative rights of all the mineral owners in all the sections affected by the fault.
James, Jay’s right and if you have a small interest and want to do some legal leg work. Find out on the OTC website who is purchasing your well’s production. If the operator is responsible for payment, you might notify the company purchasing your well’s production and inform them that the operator has refused to pay you and demand that the purchaser pay the amounts due. This action probably won’t get you paid, but it creates a legal problem for the purchaser and they may start demanding that the operator pay you.
I’m referring to American Energy Bob. Thanks for the advise, I’ll call an attorney in Stillwater that my family has dealt with before. Martha, It’s a substantial amount to me. 10% of the unit and 1/4 royalty interest.
Martha, Is the OTC the Oklahoma Trade Commission? Thanks
James, OTC is Oklahoma Tax Commission http://www.oktax.state.ok.us/
Go to Gross Production - scroll down & click Public PUN Search - select Search by Legal & type in your legal then hit search - click on Production History and it should show the purchaser. If it doesn’t show, call OTC and ask for the purchaser name and number.
The average to continue operating an existing well in the US is around $20 to $25 per barrel. Some big producing wells should be drilled in the next 18 months.
So is that good or bad?
What company are we referring to?
Bob, It means the wells are economical as long as their oil production is bringing $20 or $25 per barrel or their production is equivalent to that price. If the price of oil goes below $20 the well’s operational costs are more than the production revenue and they shut them in. In order to offset the low revenue operators will only drill the best producing wells.
Martha, Thanks for the reference to OTC web site for production.
And Martha, I thought it was not profitable for the oil companies to drill if the price per barrel was below 82 dollars…So I heard somewhere…thanks ya all
Lifting cost is your oil sales minus LOE (Lease operating expenses) It can vary with each location, company and type of equipment.
I hope some one can give me some advise with my situation . I own mineral rights in Payne Cty with 2 wells in production on the same unit,Section 21. I signed the division order the first of Sept. and started receiving my monthly checks in Sept of 2014 for the first well. I signed the division order for the 2nd well in late Jan 2015 and have received my first monthly check along with the check for the first well. I have never received my check for the first 4 months of the first well which was Feb thru May 2014. When the first check arrived for well number 2 the money for Jul thru Oct was not included. I have spoken with ladies 4 times since Dec first and can’t get a answer as to when I’ll be paid. They tell me they had a mess on their hands when they obtained the wells from Calyx. Do I need to consult an attorney? Any help would be greatly appreciated.
James, A demand letter from an attorney may help and, if all else fails, you might be able to place a lien against the well. The Oklahoma Gas Owner’s Lien Act of 2010 may be applicable.
James, let us know how your dealings with AEP go…
20 to 25 dollars for what? Guess I missed something…bc…Is that the Royalty payment…per barrel?