I have been watching mineral rights on ND Oil and Gas Commission site. I just realized that I was looking at the wrong sections on one of my leases (Sec 5 & 6 163N 100W). Each Section is in a separate 1280 drill spacing (5 with 8 and 6 with 7). There are 4 active wells in section 8, operated by Kaiser Frances, which is in the drill spacing with section 5. Three of the wells are more than 5 years old. Have I been left out of royalties from these wells?
Mr. Anglin, those are not horizontal wells, you would have to own acres in the 40 acre, 80 acre or 160 acre tract that those wells are drilled on. They are not on 1280 spacing. I would check to see if you own acres in the spacing of the one in section 6, it's been there since 1984 and a fairly good well, but no production since last july.
Okay, How do you know if it is a vertical or horizontal well? (Disregard, I figured it out!)
One more stupid question now... I noticed that on my other property (164N 100W) the rig on 22385 has now moved to 22732. I have been watching the daily reports, but never saw that change. Is there any way to get more information on this move?
Thanks again for the information RW
If you go to the NDIC O&G website and use the gis map and input the coordinates of your minerals t- r- s and click zoom to section, wells that are just black dots are verticle and those that have a line leading away from the dots are horizontal wells.
Taking a closer look at your area Mr. Anglin, I see that SM Energy seems to be the foremost operator in your area and they are drilling some very respectable wells. SM Energy seems to have a permit in section 8 which is spaced with your section 5 as a 1280. As you are probably not held by production, I think it likely that this will be your well, as the other space it could go into is already held, and holding acreage by production is top priority.
I figured the vertical/horizontal out after I asked!! Thanks again RW, you have been very helpful answering my dumb questions...
r w kennedy said:
If you go to the NDIC O&G website and use the gis map and input the coordinates of your minerals t- r- s and click zoom to section, wells that are just black dots are verticle and those that have a line leading away from the dots are horizontal wells.
Mr. Anglin, just as they say, the dumb question is the one you didn't ask that turns out to be important later, and I sure wasn't born knowing this stuff.
If you dont mine my asking... Do you have any producing wells on any of your mineral interests?
r w kennedy said:
Mr. Anglin, just as they say, the dumb question is the one you didn't ask that turns out to be important later, and I sure wasn't born knowing this stuff.
Mr. Anglin, I don't mind at all. I have 6 producing wells in Mckenzie county and I have 4 producing wells in Dunn county with another one drilling as we speak.
It appears you are doing quite well! Sorry for all of the questions, my wife has had mineral interest from her side of the family for many years. Other than a lease every 3 to 5 years, nothing else has happened. It is getting exciting seeing drilling activiy in our areas. We had recently signed a top lease with diamond on Sec 30-33 164N 100W on which we have 91.3 acres. They offered 1,0000.00 bonus per acre, 20% royalty, and 10% up front even if they did not get the lease. We got the 10%, and were told the lease will not go through since the prior leaseholder is drilling. We are excited about the drilling, but we only have 15% royalty. We were hoping our current lease would have expired, but at least we may be getting some royalties. Not really sure what is realistic for royalites, but, we will be gladly accept the gift!
One more question, the well on Section 8 spaced with 5 is due to come off confidential on May 23rd. How long before we will get a division order? Should I contact the operator and inquire if we do have interest in this well?
Thanks again RW
r w kennedy said:
Mr. Anglin, I don't mind at all. I have 6 producing wells in Mckenzie county and I have 4 producing wells in Dunn county with another one drilling as we speak.
SM Energy has been pretty good to work with. I would wait until there was 150 days production before I would jog their elbow, because at that point they are supposed to be paying you. You do not even have to return a division order in ND and people frequesntly get the first check before the division order. I never have returned a division order. I do check them carefully to make sure that what they think I own matches with what I know I do.
Where do I find out when production started?
r w kennedy said:
SM Energy has been pretty good to work with. I would wait until there was 150 days production before I would jog their elbow, because at that point they are supposed to be paying you. You do not even have to return a division order in ND and people frequesntly get the first check before the division order. I never have returned a division order. I do check them carefully to make sure that what they think I own matches with what I know I do.
You could keep an eye on daily reports on the NDIC site. I have the $50 a year subscription to the NDIC site so I can check production on any well off the confidential list. Sales are called Runs on the list. I can also get into the files for the wells and see when the operator first asked permission to sell oil. Operators are frequently behind on paperwork but requesting to sell oil will be filed promptly.
Okay, I have been watching the daily reports. I still am not sure when production starts on a well listed. If a well is on confidential status, how do you know when they started production, or does the 150 days start after it is released from tight hole status? Sorry, I am having trouble making sense of all this...
The 150 days starts from the first sale. Most wells are off the confidential list before the 150 days are up. Many are off the confidential list before they are fracked. 2 of my KOG wells were off the confidential list 3 months before they were fracked. I would let the well get off the confidential list before I became worried about the division order. When the well is off the confidential list it's alot easier to get information on sales, if any.
Thanks, I was under the impression wells were producing when the rigs were off site. I will be investing some money into the subscription service.
r w kennedy said:
The 150 days starts from the first sale. Most wells are off the confidential list before the 150 days are up. Many are off the confidential list before they are fracked. 2 of my KOG wells were off the confidential list 3 months before they were fracked. I would let the well get off the confidential list before I became worried about the division order. When the well is off the confidential list it's alot easier to get information on sales, if any.
A very few wells are capable of considerable production before they are fracked, most aren't. Some wells, like two of mine were not fracked for 9 months after they were drilled. I was unhappy that we were missing $113 per bbl oil. When they finally got it producing oil was about $98. It comes and it goes. It would be nice to catch the high price with a new well producing it's best. There is only a finite amount of oil and every barrel you sell for $80 is a barrel you won't be able to sell for $100, but we mineral owners have little control over that.