anything going in Sec 27 8N 6W? It was included in a Continental filing for Sec 35 and surrounding sections.
Sylvester, Good news! Continental plans a Multi-Unit Horizontal Well for sections 27 and 34-08N/06W. Between the two sections they have a total of 7 applications pending before the OCC, so it will probably take awhile for final approval. Click below to see the application for the Multi-Unit.
Sylvester, Your name is on the list of respondents of Continental's application for Drilling and Spacing Units made in the first part of June. You should have received a copy of it. If you read it very closely it mentions sections 27 and 34.
Mike
Thanks, Michael. I got the notice but don't know much about these things. How do I calculate my share of the production? I own 160 net acres in Section 27. None in 34, but 85 acres in Sec 26 and 20 in 35. I gather that these latter two are not as active.
Michael Hutchison said:
Sylvester, Good news! Continental plans a Multi-Unit Horizontal Well for sections 27 and 34-08N/06W. Between the two sections they have a total of 7 applications pending before the OCC, so it will probably take awhile for final approval. Click below to see the application for the Multi-Unit.
The multi-units are pretty new to Oklahoma, only one completed so far. The first well allocated 47% of production to one section and 53% to the other. The way yours is described I'm thinking it will be 50-50, won't know for sure until the order is finalized. The section is 640 acres so you divide your 160 acres by 640 and multiply by your royalty %,< I'll assume 3/16 (.1875)> 160/640 = .250 X .1875 = .0469 this is your net royalty. A multi-unit could easily bring in $60,000 per day, your section gets 50%. So .0469 X $30,000 = $1407 per day your share.
A good well could make you a wealthy man if you are not already! Good Luck. I haven't looked at the other sections but will let you know if I see anything interesting. Mike
OPINION ONLY, I AM NOT A PROFESSIONAL. THESE FIGURES COULD VARY GREATLY DEPENDING ON ACTUAL PRODUCTION AND PRODUCT PRICING.
Thanks, Michael. Looks good, but I am not spending the money quite yet! But this explains why I have been getting so many unsolicited offers to buy my mineral rights.
PS. With the prospect of litigation, sadly, I probably will not live to see the first check!
Sylvester W. Brock, Jr. said:
Thanks, Michael. Looks good, but I am not spending the money quite yet! But this explains why I have been getting so many unsolicited offers to buy my mineral rights.
Sylvester, Maybe I am overly optimistic and I completely defer to Don's standing as an oil and gas professional but until I see otherwise I view that as a worst case scenario.
Michael: Is there a provision in Oklahoma law that sets forth the split in cases like this? Someone said it is based on the length of pipe in each section.
PS. At age 81, I probably can't wait too long! Remember Jarndyce v Jarndyce in Dickens' book.
Michael Hutchison said:
Sylvester, Maybe I am overly optimistic and I completely defer to Don's standing as an oil and gas professional but until I see otherwise I view that as a worst case scenario.
Sylvester, I understand the split the same way. Not real familiar with Bleak House but I get the point.
I like Shakespeares quote about killing the lawyers. I know it is misunderstood but I still chuckle at the phrase.
You got 16 years on me, doesn't seem like much of a gap anymore!
In reading the filing for Sec 34 and 27, I note that Continental is asking the court to assess the costs of drilling and completing (against the royalty owners ?). That sounds like a lot off the top! And I thought the cost of drilling was the responsibility of Continental. Have to look at my lease agreement again.
Michael Hutchison said:
Sylvester, I understand the split the same way. Not real familiar with Bleak House but I get the point.
I like Shakespeares quote about killing the lawyers. I know it is misunderstood but I still chuckle at the phrase.
You got 16 years on me, doesn't seem like much of a gap anymore!
That would only apply to those who opt to "participate" in the well. Those who lease for a royalty % have the details spelled out in the lease.