Martha, try typing while eating Cheetos! You end up with an orange keyboard!
Thanks Martha, still a little “skittish” on 7K. If I take the 20% and more than two wells are drilled and produce we’ll be happy. Glad to know that each lateral is considered a separate well. That could pay off nice. What’s the max number of bores in 640 acres?
Forgot the link showing laterals.
Jimmy, I’ve been in O/G 35 years and started with no knowledge. A few folks helped me along the way. One was a geologist that sat at my kitchen table and showed me how to read well logs. The rest I learned by the grace of God. Mississippian is oil and gas, Woodford mostly oil and Misener-Hunton holds lots of water along with whatever hydrocarbons drained from the Woodford, so they can frac the Miss and Woodford and get the Misener-Hunton too. OCC makes them list any and all formations that will be affected by the fracs.
Thanks again Martha. So you started in O/G when you were only 10 huh? 
Martha, I think, based on my previous post, that a good thing just came in mail from American’s attorney. It’s a Notice of Hearing and an application requesting “Increased Density”. It states " Applicant has determined that one well cannot adequately and efficiently develop the entire unit and requests authority to drill and produce an additional well". Sounds like a good thing to me!! Jimmy
Thanks so much again Martha.
M D is right, Let me take a closer look at it Jimmy. You can upon geologist M Barnes too. Right now, she’s down in Lincoln Co right now.
Thanks M.D. and Martha. Would the 7K approximate participation be for each well? Probably a bit pricey for us at present. Hypothetically, let’s say I did participate in one well and that well produced 200 bpd @ $50 per barrel. What would the return be?
Jimmy, They can drill as many laterals as needed to develop the unit. The OCC won’t let them drill unnecessary laterals (wells). Anywhere from 8 to 16 laterals might be the max, but that doesn’t mean that many will be drilled. It all depends on how many are needed in your area. They won’t know for sure until more wells are drilled and they collect more data.
Thanks again Martha
Jimmy, Sandridge is using fork well laterals (3) with 3 bores and 9 laterals per 640, but that’s just for the Mississippian. It’s early in the game, so I don’t know for sure what they will do in Payne Co. I posted this a few years ago, so it’s 2012 and shows 3 per pad using multi laterals (2) making 6 wells per pad with walk over rigs and we could see 40 acre spacing for the Woodford. Gas spacing units are larger than oil spacing units. I’m taking a guess that some areas in Payne may see 12 laterals per section.
Here’s an excel spreadsheet I use to calculate production. Plug in your royalty interest amount in the field NMA’s Times Royalty = Net Royalty
Martha, another question(s): Since AE is going to drill another well, I assume I will receive another offer to lease for it? Also, if they drill a lateral , which you said are considered separate wells in themselves, will they also be subject to separate lease agreements or, since they are part of an existing well, will they fall under the lease of the main bore?
Jimmy, When you lease and the operator drills a producing well(s) in the primary term of the lease, you will not have the opportunity to lease again regardless of how many wells are drilled as long as the well(s) remain productive. The primary term is the initial period during which a well may be drilled. Therefore, your lease is extended by well production. This is called Held By Production. (HBP) These wells can last 30 to 40 years. By then, they will have new techniques to claim the remaining hydrocarbons and that could extend production a few more decades. Basically, (give or take a few rules) the lease will end when the production ends. So, carefully consider what MD suggested. You will only have one chance to participate with your minerals for many years.
Wow Martha, you are a virtual Encyclopedia of Oil and Gas!! Thanks for the links. Spreadsheet will be very helpful. FYI, the first Notice of Hearing and Application listed three Common Source of Supply: Mississippian, Woodford and Misener-Hunton. Does that mean anything?
Good morning Martha
When the AE lease paperwork arrives, would you mind looking at it for me? ( hopefully this is kosher )After doing some research I know that I’ll need advice on how to add the Non-Deduct if it’s not in the lease. And I’m sure I’ll find other “little” things that may go under the radar of a novice mineral rights holder. Thanks for any advice. If you’ll send your email address to me at jamartin@hot.rr.com, I’ll scan the lease and send it. Regards, Jimmy
Jimmy, I do not use company leases and write my own, but don’t write leases for others. I am not an attorney, so you should get an attorney to review your lease before you sign. However, if you friend me and I’ll send you the no deduction clause I use.
ok, thanks Martha
Released today 11/10/15: IEA’s World Energy Outlook 2015 forecast that the oil market would rebalance at $80 per barrel in 2020, “with further increases in price thereafter.”
“The International Energy Agency expects demand to begin outpacing supply in the second half of next year (2016).” Good article
http://www.etf.com/sections/features-and-news/heres-real-story-why-…