I have minerals in Blaine County (section 24-16n-12w). I inherited these minerals from my grandparents. I believe they have a lease for the Manke well on the property but I do not know the specifics of the lease (I am in the process of getting a copy of the lease from Crawley Petroleum). I am wondering what would happen if the manke well is held while continental is going in? Would they force the manke well to be plugged? Would I be better off selling my minerals rather than holding them if I am held to the lease for the manke well? I am not very mineral savvy! I welcome any advice and assistance!
RDennis you can go to the Blaine County Clerk's office at the courthouse and pull the index book for 16N-12W and find your grandparents name and where they signed an oil and gas lease. Write down the book and page and then go to the back of the clerk's office and pull the book. Any of the ladies in there will help you. It will have the royalty rate. Crawley farmed out their deep rights to Continental and reserved an override. Crawley will continue to produce the Manke well. You are better off holding your acreage until the C Farms well is drilled and producing.
The original well can produce while the new well drills and then produces. The Oklahoma Corporation Commission makes sure that wells don't drain each other. The Manke well is in the Watonga-Chickasha Trend Morrow sands and that is a different reservoir than the new horizontal well drilling. The Manke well is also a long time into its production lifetime, so volumes are lower now. Normal.
They will not plug it until it is no longer economic.
I would NOT sell your minerals right now since there is horizontal drilling all around you and it will probably come to your section eventually. Your Manke well holds your minerals right now, but there has been quite a bit of leasing in the rest of 24 in 2016, so that is encouraging.
Go on the internet and look up the recent Q1 and Q2 investor presentations for Continental Resources, Newfield, Devon, Cimarex and Marathon and you will see how popular your area is.
Read over the last six months of the discussion and comments area of Blaine and get caught up on the general questions, answers, drilling, and sharing that other folks are doing. Then you will be more up to speed and newly savvy!
Ok thanks! I got a copy of the lease and there is no depth clause in it. I guess this means that Crawley owns my rights down to the center of the earth. Would i get any measurable revenue with Crawley holding my rights? Where is the C Farms well?
RDennis glad you got a copy of your lease. Crawley has assigned your deep rights to Continental so you will have your full share using the math I provided to you in an earlier email (3/16(royalty) x 2(net acres)/640 (unit size) = your royalty share in the well. C Farms surface location is 200' from the north line and 990' from west line of 25-16N-12W. Bottom hole location is 50' from the north line and 990' from the west line of Sec. 24-16N-12W. approximate TMD is 16,625'. They're planning on 17 stage frac in the completion phase.
You only get paid for the portion of the well in your section.
net acres/640 (or the actual acreage of the section) X royalty X % of well perforated in your section.
The OCC will determine the exact percentage assigned to each section after the survey is run. If this is a single section well, then the % is 1.0. If multi section well, then might be a partial percentage.
MBarnes I believe this is a single well section - all perfs in 24-16N-12W. 640 ac spacing.
We havent recieved a check from crawley. Has anyone else?
You would only receive a check from Crawley on the old Manke well if your acres are in the spacing unit for the old well. Probably 80 or 160 acres. The new well has not been drilled yet and the new operator will pay for it.
per the completion report the Manke is on 640 spacing