# Section 15 and 16

does anyone have information on drilling in these sections? We have been offered 7200.00

per acere to buy. anyone else?

tom bates

Continentals Reserves estimates: EUR: 626 MBoe (75% liquids) or 469,000BO per well
EUR =estimated ultimate recovery per well in the Scoop area

With 4-8 wells per section thatÂ’s 1,878,000 BO -3,756,000BO x \$100BO=\$187,000,000-\$375,000,000 total cash flow to depletion in the woodford for 100%

6.4 net mineral acres or .01%royalty interest in a section "could" be worth \$1,878,000-\$3,756,000 in the fullness of time and they are offering to pay \$46080. If an specific area has thicker woodford i.e. greater then 150" thick more wells could be drilled to exploit and drain with up to 16 wells per section. There are also other formations that could be developed. So bottom line unless one has a sort life expectancy or needs cash for an emergency.....\$7200 appears ridiculous.

section 15 and 16 of what township and range

Jake, don't forget you only get 3/16 or so of that 1%

well that is why I used a net number. if a person has 24 mineral acres in a section with a 1/4 royalty(25%) that would be a net 1% royalty (6.4 acres) interest in the well(s). 32 mineral acres at a 1/5(20%) would be 1% royalty (6.4 acres) interest in the well(s) and 34.5 acres at 3/16 (18.75%) would be a net 1% (6.4 acres) royalty interest in the well(s).

Michael Hutchison said:

Jake, don't forget you only get 3/16 or so of that 1%

section 16-6n-6w and 15-6hn-6w

MIKE FORD said:

section 15 and 16 of what township and range

We must do math differently. 1/4 royalty on 24 ac. In a 640 unit is .009375 net royalty. Multiplying you acreage by your royalty % does not change your number of acres it only determines your net royalty you've either got 24 acres or you don't. You can't round these numbers off and expect to come out with an accurate decimal %.

Tom, there is a lot of activity in 6N/6W, Continental Resources has plans to drill sections 13,14 and 15. Marathon and Apache are also active in that area. Continentals applications for 15 are on the court docket for 8-12-13. If approved they could be drilling within the next few months.

math is of course math, you are right on the rounding. But there are so very many assumptions here. Seems to me that rounding may be forgiven on a bulletin board forum but not a division order? For those with interest and who might be trying to figure out what potential value their minerals hold there are many assumptions. What will the price of Nat gas be? what will the price of oil be? How many wells will be drilled? How long will the wells produce? What will the tax rates be? will they eliminate the depletion allowance? who knows really. But using the figures Continental is publishing a net 1% royalty interest in any given section could be worth \$1,878,000-\$3,756,000. So if one looks at the economic fairness of any lease bonus or mineral purchase or royalty purchase offer one may conclude some of these offers are on the low side! as we run the numbers, with wells now completely surrounding us(de-risked), leasing with a 1/4 royalty even with NO bonus is a better deal and leasing a portion of our minerals and participating for a portion may be even a better deal. its all good!