Jimmy, Yes, I’m seeing a dim glow! Here’s an article reporting the same. Note that Noble Corp is offshore drilling and IEA forecasts shale to out perform offshore in 2016. However, in the investing world the offshore drillers are bell weathers for the future oil markets, because they can’t profit with oil at $50. This article suggests investing in Noble Corp (NE) because oil is expected to over higher in 2016. In this biz, you have to read in between the lines and the tea leaves. LOL!
http://seekingalpha.com/article/3707016-noble-corp-a-light-at-the-e…
Map shows Mid Continent (that’s us) for the next 20 years.
Thanks Martha Light at the end of the tunnel?
Jimmy, You will now have 5 acres of the 640 acres, so divide 5 by 640 and multiple by your decimal royalty percentage (example 3/16ths is .1875)** ** to get your decimal royalty interest of production from all wells drilled in the 640. The second well is a good thing. The more the better!
I think I get it now: With the 40 acre spacing I would only get royalty from the well(s) drilled in my little plot of the section (80 acres) 5 divided by 80= .0625. Now I will get it from all wells within the 640 acres at 5 divided by 640=.0078125 X decimal royalty interest. It will take 8 producing wells spread over the 640 to give same royalty as one well in my 80 acre parcel. Thanks Martha
Steve, Go to http://www.ok.gov/tax/ > All taxes > Gross Production > Scroll down to bottom of page and click on Public PUN Search > Scroll down and select Search by Legal then fill in 06 under Section, 18N under Township, and 04E under Range and hit Search. All wells listed as Active are should be still producing. Click on Production History for amounts. Note: OTC production records are not current. Most times, they shut the existing wells in when they frac the new ones.
Good morning Martha
Latest on my end: Received notice of hearing to revise spacing from 40 acres to 640 acres in Section 9. Since my parcel is “5 acres in an undivided part of 80 acres”, will this impact my royalty calculations if AEW strikes? Yesterday I received the ruling from the OCC that they approved the 640 acre spacing. It does include my location specifically of T18N Range 2E Sec 9 E/2 of SE/4. I have also received a Notice of Hearing in that AEW asks for a second well to be drilled for more in-depth results. I have not yet received the OCC ruling on that. Is all this good, bad or ugly? 
Thanks Jimmy
Hello again. I received two AEP royalty checks (9/10 & 9/29) but nothing since - I figured that could be because they aren’t selling off much because the price is so low OR the well is not still producing for whatever reason. AEP asked for more spacing in my S/Tn/R and received a permit for a second well a couple months ago which sounds encouraging but how do I find out if the current well is still producing. Thanks
Steve, They only shut the existing well down for a short time period. They have to get accurate completion records for the new wells and the producing wells can interfere with pressures etc. Don’t worry they wouldn’t be drilling a second well if the first was not performing nicely. Dry holes are a thing of the past.
Thanks Martha (Bob Clary also sent me some info) which I’ll tackle in the morning. Are you saying when they complete well #2 on the S/Tn/R they close down well #1?? Thanks again.
Jimmy, You may get 8 wells and the spacing could be increased again. They drill a few wells to hold the entire section by production (HBP) until they are ready to start their massive drilling program. This is not like the old verticals wells drilled in the old oil/gas fields. There’s a new game in town.
Reminder: OPEC meeting is Fri Dec 4th and we could see a 10% price increase. Even if OPEC doesn’t cut production IEA’s projected 2016 demand increase should reduce global oil stocks by 200- 300 million barrels and that should drive the price of oil up.
All I want for Christmas is a signed oil lease Thanks again Martha
Jimmy, Turkey is helping ISIS who is selling oil to Turkey and using Turkey’s pipelines transport oil to ships, Iraq is accusing US of helping ISIL, US is telling Russia to stay out of US operations in Syria, but is encouraging the Brits to bomb as they wish, Saudi’s are strangling the Iranian economy along with several other OPEC nations, and the US is taking oil pricing control from OPEC in order to compete as a major oil export country. As we say down here in my county, “Houston, we have a problem.”
Martha, yep, the middle east is a mess. Almost as messy as the I-35 construction we have to deal with everyday here in Central Texas!! Oh well, can’t complain about that which we can’t control. Been on this ride before when we lived in Midland in the late 70’s and early 80’s.
Martha & Bob Clary thanks to you both - if the status is indeed up to date the well is ‘active’ so I guess I can go shopping with a little more Christmas spirit. Once again this forum has been such a valuable resource.
Martha, Britain has started bombing ISIS help oil fields in Syria. Think that might cause slight uptick in prices today?
I-45 North of Houston looks like series of unfinished carnival rides. Due to Exxon and other major oil companies, The Woodlands, TX (my area) was one of the only areas in the US to add more than 100,000 people from 2013-2014. Once this oil mess is settled, we are expecting 1 million new residents over a the next ten years. The building going on down here is massive and it’s all in anticipation of the US exporting oil and hydrocarbon liquids from our shale wells. Go USA!
News - Devon Energy is in talks to buy Felix Energy in Northern OK for $2 Billion.
