Can anyone advise on the status of the Shadrach 68 Well #1H and Fiery Furnance wells in section 68 block 4? II am getting offers of $20,000 NMA and wondering how far off they are of actually having a producing well? I have tried to use the state website but can’t seem to figure out the right way to get information from it on well status.
Who’s the operator? If I knew this I could help out with my limited knowledge of the Texas RRC.
Don’t sell. I have a well from Colgate in block 5 and it’s AMAZING. I would love to own what you have. It’s probably going to be worth the wait.
It looks like they originally tried to get permits in 2017 but they were only approved in January of 2019. I would suggest either calling the RRC or Colgate (or both) to see if you can get any info.
Here is the Shadrach Unit: http://webapps.rrc.texas.gov/DP/publicQuerySearchAction.do?countyCode=389&apiSeqNo=36298
Shadrach 1H and Shadrach 2H were spud earlier this year and are just now starting to produce.
The amount you receive will depend on how many net acres you own of the total gross acres. These wells are long horizontals so I bet the unit is larger than 315 acres. Maybe you own some undivided part of 513 gross but that 315 has been pooled with other tracts?
You can predict your revenue with Buddy Cotten’s division order spreadsheet. Here is a version of his spreadsheet that I modified to predict potential revenue (with dummy numbers). Of course, the predictions are only as good as your starting figures. Also, this doesn’t take taxes or deductions into account.
To get an idea of what Colgate’s wells are generating in this area, you can look at the offset production on the RRC’s GIS. Look at Goliath and King David, which are nearby. I think they have a few other wells nearby as well (maybe Cantaloupe - I can’t remember if that is Colgate’s well). You’ll have to click around. It is helpful to see how much the offset wells decline in the first two years - so you have more realistic expectations.
I hope this helps.
Also, most leases are “paid up”, meaning they paid you the delay rental payment with the initial bonus. It was a nightmare for these companies to track mineral owners each year in order to pay the delay rental, so they started paying upfront.
No drilling has commenced (spud) for the fiery furnace wells according to the Texas RRC.
Don’t sell. Here is a link where you can (hopefully this link will work) see for yourself that the two Shadrach 68 wells have been spud (drilling commenced.) Tennis Daze says the wells are producing. No completion info on the RRC site yet but they were drilled starting in January and February of this year. Congratulations.
How long does it typically take before they start reporting the amount they producing? Based on the time they started is it reasonable to assume royalties are coming fairly quickly or probably not?
Thanks👍 What have the average barrels per day been on most wells?
There was a three month lag time between production and royalties on our wells with Apache. Ours was all natural gas and condensates, so can’t help on price per barrel. Wish I could.
I am also with Apache, now going on 2 1/2 years. They have NEVER missed a royalty check. Our sections are30,32, 36, 38 in Reeves County.
If you have two horizontal wells going through your lease then do they pay you for each separately or do they both tie into one rig and you only get paid for one?
each well is controlled by it’s own division orders.
Can you have multiple wells that have the same lease included in the division orders?
In our case, we received seven different division orders for the seven wells drilled on the family property. Those represent two leases - Ash and Birch. I can’t answer your question, just provide our experience as an example.
My experience has been there have been multiple wells on one division order from Devon on New Mexico ORRI interests. As for Texas, one division order for each well was sent.
The operator sends the Division Order to each mineral owner with valid title via the mail.
I don’t see any activity for the Fiery Furnace wells. Both of those and the Shadrach go through A-3843. Is it possible that one of more of these will not be covered in our division order? If Shadrach starts producing but Fierty Furnance does not then I guess we are out of luck?
Where are you seeing that they are actually doing something with the Fiery Furnace? When I click on the links I see that most recent dates of any activity from 2017.
Both Shadrach wells have been spud. One in January the other in February of this year. If Liz says the well encompasses the entire section then your acreage will be included and you will get a division order. You need to be patient or try calling Colgate’s owner hotline number and inquire on when you might expect a Division Order.