Ron I got it now! thanks
Alfalfa: Chesapeake Operating, LLC; Franklin Murrow 7-26-12 No. 1H Well; NE1/4 NW1/4 NE1/4 NE1/4 (SL) of 07-26N-12W; 328 barrels oil per day, 1,423 cu-ft gas per day TD 10,443.
M we finally are on gas line now, but I dont know any numbers yet. Probably wont get first check until Feb or March.
M, just got a call, right now it seems to be a good well. They are running electric across me and dont want to bury. Will farm around poles if I have to.
RH, Just saw it tested 242 bbls and 1200 MCF of gas on the 12th of October… Should see more offset wells as the Bill Ginder well in sec 29 and the Allison well in 25 have both been good wells, and you are right in the middle of those two…They have been infilling in various sections in our township…
Ron, I just sent you a “friend” request, as the answers to most of your questions is yes. I don’t want to burden you with explaining all of this to me, but I do have a couple of very basic questions that I wondered if you could clarify or advise me where to find the best information. Thanks for your willingness to help a newbie!!
Alfalfa: Chesapeake Operating, LLC; Leamon Trust 21-26-12 No. 1H Well; NE1/4 NE1/4 NW1/4 NE1/4 (SL) of 21-26N-12W; 327 barrels oil per day, 2,156,000 cu-ft gas per day; TD 10,510.
Sandridge Exploration & Production, LLC; Highfill 2711 No. 4-12H Well; NE1/4 NW1/4 NE1/4 NE1/4 (SL) of 12-27N-11W; 407 barrels oil per day, 2,408,000 cu-ft gas per day; TD 9,699.
Alfalfa: Sandridge Exploration & Production, LLC; IPT 2710 No. 1-6H Well; NW1/4 SW1/4 NE1/4 NE1/4 (BHL) of 06-27N-10W; 664 barrels oil per day, 2,515,000 cu-ft gas per day; TD 10,050.
Sandridge Exploration & Production, LLC; IPT 2710 No. 3-6H Well; NW1/4 NW1/4 NE1/4 NW1/4 (BHL) of 06-27N-10W; 841 barrels oil per day, 2,318,000 cu-ft gas per day; TD 10,720.
Alfalfa: Chesapeake Operating, LLC; Buckles 4-25-12 No. 1H Well; NW1/4 NW1/4 NW1/4 NE1/4 (BHL) of 04-25N-12W; 266 barrels oil per day, 1,100,000 cu-ft gas per day; TD 11,211.
Fairway Resources Operating, LLC; Lawilda No. 3-10H Well; N1/2 N1/2 NW1/4 NE1/4 (SL) of 10-27N-11W; 330 barrels oil per day, 1,321,000 cu-ft gas per day; TD 9,956.
Ron McKenzie.
When I go to the Gross Production System on the OK Tax Commission and enter the legals, I am not getting the same results as the Companies are reporting for production. Is the Gross Volume column a daily ave or total for the month. Confused?
They seem to play out rather quick. Mine has done likewise.
As a third generation mineral rights owner, I am very curious as to why the monthly checks are much smaller than they were. On the property Sandridge is drilling there are six wells. The monthly royalties are about four times less than they were a year ago. My question is why are the wells producing less? Mississippi Lime appears to have a huge supply of oil, so what is the problem?
Rock total is for month.
On 11 July 2014, Relief Granted by state of OK for three additional wells to be located on 640 acre unit section 27, township 28 north, range 11 west, alfalfa county within one year of stated date. Does anyone know if said wells have been initiated yet?
Reference section 30-14N-3W, columbiana county, Ohio…anyone have any information on oil production activity to date?
Alfalfa: Chesapeake Operating, LLC; Evelyn 23-25-10 No. 1H Well; N1/2 N1/2 NW1/4 NW1/4 (SL) of 23-25N-10W; 12 barrels oil per day, 833,000 cu-ft gas per day; TD 10,614.
Chesapeake Operating, LLC; Hollywood 23-24-12 No. 1H Well; NW1/4 NW1/4 NE1/4 NE1/4 (SL) of 23-24N-12W; 212 barrels oil per day, 442,000 cu-ft gas per day; TD 10,810.
Chesapeake Operating, LLC; Magnolia 33-27-12 No. 1H Well; SE1/4 SW1/4 SE1/4 SE1/4 (SL) of 33-27N-12W; 86 barrels oil per day, 1,072,000 cu-ft gas per day; TD 9,968.
Chesapeake Operating, LLC; McMahan 4-26-12 No. 1H Well; SE1/4 SW1/4 SE1/4 SE1/4 (BHL) of 04-26N-12W; 140 barrels oil per day, 1,105,000 cu-ft gas per day; TD 10,740.
My question is why are the wells producing less? Mississippi Lime appears to have a huge supply of oil, so what is the problem?
All reservoirs deplete over time. Your water well is in an active aquifer and does not “deplete” per se. You can draw it down by over-producing, but water will replenish from the surface.
At depth, formations are confined and therefore they can deplete. Once the oil begins to produce, then formation pressure drops and oil is replaced by the confined formation waters. Therefore, less oil is produced. A Miss. well will decline by 80% or more in the first year. The next it may slow the rate of decline to 50%, and eventually to 20% or so, but by that time virtually all the oil has been produced.
To maintain production, additional wells will be needed, or the zone will have to be recompleted in another section, or a well must be Refracc’ed.
SandRidge scares me. The stock has fell off the cliff. I think they may have cash flow issues and as royalty owners you could suffer from their desperate plight. If they file bankruptcy, you could lose your check temporarily or permanently and there is the temptation to pad the “post-production” expenses to improve the bottom line.
Tax question! I inherited some property years ago. Last year I began receiving oil royalties. Can I write off part of the royalties for Depletion Allowance?
Thanks TL
If you get a check then yes, you can write off depletion allowance. It is a flat percentage unless you want to jump through a bunch of hoops. Your CPA should be aware of the depletion allowance.