They will have to get an extension and pool again. It has not spud. There is no permit.
I believe that today is the deadline for spudding a well in Section 16, Township 2 North, Range 5 West, so if that has not occurred, there wonāt be a well at all unless they lease those mineral rights again. Does anyone know if they have begun?
Would any of you guys know how to pinpoint where in a particular section my minerals may lie? All my paperwork goes back to the mid 60ās, but only lists Section, Range, and Township. Do you think Iāll just have to go to courthouse and look further back?
Is there anything on your old paperwork that has quarters or halves in the description? SW4 of SW4 of 4-4N-4N or something like that?
Do you have any division orders from currently producing wells? The division order analyst can get you the exact description from the title work.
Our check was up a little bit more this time again. Iām sure it is because of the slight increases in oil a couple of months ago. Seems it has been dropping nearly every day this last month so guess the increase is short lived but better than nothing!
Good thing about nearly all of these new wells is that with the spacings it really doesnāt matter exactly where in the section yours is you still get paid (unlike the old vertical wells).
We got our first royalty check from Newfield for the five new Hunter wells. We donāt own many mineral rights there, but it is better than a stick in the eye.
Can anyone tell me when your mineral rights are force pulled at what time after finding the rightful owners should Newfield be paying out the bonus per acre. Talked with someone at Newfield and they said this would not happen until they actually got something and sold it. I have read somewhere else that this money should be sitting in an account already as it was force pulled last September.
No, they owe the proper owners the pooling bonus 35 days after the date of the pooling.
The royalty on the production comes to the proper owners after the well is online and production begins.
If you responded properly to the pooling request within the 20 days, then that money is ready for the proper owner. If there was a problem, then the presumed owner was assigned the 1/8th royalty and matching bonus and it is waiting at the company for the proper owner to claim.
With the big boys, I have to occasionally remind them that their bonus is late. You will need to send a W-9 signed by the proper owner. Write the attorney listed in the pooling order and request your pooling order bonus again. With my second request, I attach a copy to the OCC in the heading of the same letter to the company. Send all by certified mail to both. That usually gets their attention!
Email me (or friend me-blue icon to the left) if you need a draft copy of the letter that I usually send. If you were in the middle of straightening out the proper owner, then you may have to send copies of probate documents, affidavit or heirship or something with it. They usually will tell you what they need.
M Barnes, thanks for the reply. The well to be drilled is by a smaller producer in Velma. They donāt have division analysts, pretty much left it up to me to find the location of the minerals. Off the top of my head I believe they are in Section 6, Township 1S, Range 3W, Carter County. West of Tussy post office, south side of Baseline Road. Citations Franklin unit sits in that section.
Because Iām still having problems with cutting information as a link and pasting it here I am just going to cut and paste the information here a little at a time. So here is a little bit of what I was sent in an email:
The STACK leases have the best return using current pricing. The company is increasing production in Oklahoma at the expense of the Bakken.
The Oklahoma results are improving materially, and are expected to further improve in profitability.
The costs in the Bakken are very low, but the oil price differential destroys the Bakkenās profitability.
Management carries a significant inventory of drilled but incomplete Bakken wells in an attempt to improve the IRR of these wells.
The SCOOP is also probably more profitable at current commodity pricing than the Bakken.
Continental Resources (NYSE: CLR) has been associated with the Bakken for a long time. That association is unlikely to end anytime soon. However, there are some new projects that will be expanding in the future with lower costs than the Bakken. These other areas have less of a differential in selling prices and offer other advantages for a superior return.
Patrick, In order to pay you eventually, they will need to know your exact description. They have to get a drilling title opinion, so call and write the drilling company and request a copy of the title opinion that pertains to your acreage. They will have to have an even more rigorous title opinion to pay you, so you can request that when the drilling is done. Of course, you can go to the court house and check the abstract book for that S-T-R and pull the books and go through them. The clerks should be able to direct your path.
Looks like from the public records for Stephens County Section 34 Township 2N Range 4W that Newfield is recording some more oil and gas leases there. Recent recordings have been made in the last couple of days. Hay Newfield, letās start some drilling there, please!
Man from Echo Energy called today and offered us $10,000 an acre for our mineral interest in Section 16, Township 2N, Range 4W in Stephens County. We are not interested in selling but thought someone might like the information.
Linda, you have no idea how welcome that news is! Thank you!
You can serve up news bare if you want, Linda; Iām much too old and people would run! ;-D I can certainly bear to have some pocket money one of these days from those leases, as I start chemo in a week and thatās expensive.
Our lease is up this month on Sections 18 and 19, Township 2N, Range 5W. We signed early, as most leases in these sections started in December 2013. Any talk of the action on these sections before December? Going into a force pool situation after the lease expires would be sweet :).
More good news today is that oil is going up again after a good gain yesterday!
Oil went up again yesterdayā¦ yea!!! The news people on channel 5 said twice that it was ādue to more oil companies drillingā which made no sense at all. I think she must have meant that the oil price going up has caused more oil companies to start drilling. Seems Iām not the only one that gets my fingers moving faster than my mind! lol
From the Seeking Alpha website:
North Dakota oil production falls to more than two-year low
North Dakotaās crude oil production fell 2% in June to 1.03M bbl/day, hitting its lowest level in more than two years.
The stateās Department of Minerals Resources says production may already have dropped below 1M bbl/day and could take at least a year to recover if the level is breached.
But in a positive sign for the industry, the state says the breakeven price for oil production at its existing wells has slipped to $26/bbl, showing that existing production remains profitable for companies that have aggressively cut costs.