A drilling company drilled a well 4000 ft. from our property. We are also leased with this company. The first permit was for a horizontal drill at 9000 ft. Four weeks later, after they completed the drill another permit was issued in the same hole, but this one was for a vertical well at 9000 ft. What would this possibly mean?
This is the new Big thing...suck all the Oil out of as much area as possible with as little surface rig. It also will mean the well will porduce much more Oil and (I believe it just the latest way us royality owners are going to get Fracked:))
Dear Mr. De Mary,
" ... royality owners are going to get Fracked:)) " Royalty is spelled wrong. Also "porduce" -- did you mean produce?
Worse than is that your use of the word Fracked, a thinly disguised mal à propos that you did not invent and many find offensive. One more example of the degradation of our society.
Your "Next Big Thing" has been going on for decades. Welcome to the party, I guess.
Buddy Cotten
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Lee H. DeMary said:
This is the new Big thing...suck all the Oil out of as much area as possible with as little surface rig. It also will mean the well will porduce much more Oil and (I believe it just the latest way us royality owners are going to get Fracked:))
Betty, I do not know what it could mean without examining the permits themselves.
Buddy CottenOk, it is Buffco in Milam Co., Texas. The well name is Mclane A and it was submitted on 4/21/14 and 7/2/14.
Buddy, I believe the horizontal drilling & Fracking combo..is a rather new thing, at least on the scale it's being done today...and I believe in Cass county for sure it is new.
Correct me with facts if I'm wrong. The word Fracking is not something I created, I didn't make it up... but it seemed to fit my thoughts.... If you misconstrued the meaning well what can I say....No since of humor?
You seem to be an expert, tell me exactly how horizontal drilling for up to a mile through several different mineral right areas that it can be determined exactly how much Oil / Gas comes from each area, month by month?
Strange that when I do a simple search I find many, many law suits being filed disputing exactly this point.
Exactly what is it you do for a living? Is it something that will help mineral rights owners, or producers, or both?
Regards,
Lee
Dear Lee,
Let's just say that our sense of humor differs.
The purpose of pooling is that multiple tracts can be pooled or combined to form a pooled unit that can be treated as one lease. The authority to pool is typically done voluntarily by the landowners, by way of their oil and gas lease. The pooling agreement, and the lease agreement has provisions for the sharing of production -- which for the most part say, your tract participation factor is the mineral interest you own in the pool divided by the size of the pool. Your decimal interest is a result of your tract participation factor times your royalty percentage.
In no way, shape or form, does anybody even attempt to compute the amount of production attributable to each tract. We work on the confusion of goods theory (now that was a joke). We also work on the pooling provision terms that are granted when the lease is executed.
For example, if you own 100 mineral acres in a 600 acre pool, your tract participation factor would be 100/600, or .1666666. If the royalty provided on your lease is 25%, then your decimal interest would be 100/600x.25= 0.0416667. If the well produced 500 BOPD, then your gross monthly check would run about $62,500.00.
I work the mineral owner side. Right this moment, I am in an expert witness situation in south Texas, doing a mineral evaluation of an interest in the Long Beach Field, Long Beach, CA and I am negotiating six oil and gas leases. This is the level of workload that I try to keep. Not much more, not much less. I do not take every client. If I don't feel that I can work with them, I refuse the work.
For further information, visit my home page here. You will find links to my website that explain things in more detail.
I will only work for operators who need help in Orange County, Texas, where I call home. I do not do the actual work, but supervise its completion.
Since you are in Texas. I might suggest reading these three blog posts that I penned. It may help your understanding of the process.
The Basics of Pooling in Texas
Regards,
Buddy Cotten