SEQUOIA 6093 42-34H and SEQUOIA 6093 42-34H1

General Mineral Rights Discussion
1

I have mineral rights to a small acreage in S27 T160 R93. This is a 1280 acre spacing unit together with S34 T160 R93. On the latter SEQUOIA 6093 42-34H (file no. 25046) has been drilled and put into production in April. Another permit (file no. 24331) was issued at one point, but later cancelled and now listed as PNC. However when looking at the monthly production report issued today both wells are listed as producing with identical volumes of oil, water and gas. Can anyone explain this?

2

Idar, it looks like a big error or multiple errors. In the wellfile of the cancelled permit I saw a statement that no dirt work was done. It would be interesting to be on site and see for myself, Oasis themselves requested the cancellation of the permit, they also asked permission to drill to lesser depth and set casing and have a rig capable of drilling to target depth come in to drill the well within 90 days. I can't tell at this distance what was done, or not done. You might call the NDIC and see what their take is on the situation.

3

Thanks r w. It was also my impression that there's some error(s) in the reporting.

SEQUOIA 6093 42-34H (25046) was on the daily report June 3rd as producing well completed with 338 bopd and 592 bwpd. What do you think about the high figure reported for water in April (36962)? Would that be an error as well?

4

Idar, I think that was probably in large part frack water. It's not fair to hold that against the well when thousands of barrels of water were pumped in to begin with. I would say to give it at least 3 months and then decide if it's water heavy. Water isn't that huge of a problem anyway if you have someplace handy to put it. More SWD wells are being drilled and having one on your land could be better than having an oil well so I think alot more will be drilled in the future, the NDIC director is talking about one every 10 miles and you have one closer to you than that drilling right now.

5

Thanks again, r w. I have sent a mail to Oasis asking about this. I might call NDIC as you suggested in case I don't get a reply from Oasis.