Oil & gas discussion group for those interested in Blaine County, OK. Share your experience regarding lease bonus, royalty rates, drilling activity, and oil & gas news.
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Does anyone know if wells are going to be drilled in certain sections?
Hi Linda - I usually try to keep track by the newspaper. Sometimes you’ll see the pooling articles in the paper. I dont know where else you would find that information. Do you own minerals in Blaine county?
yes I own in two sections-one west of Greenfield and one west of Watonga. They are both leased. one by Continental and one by QEP Energy . I just was wondering if they are drilling on the one west of Watonga. I live quite a ways and can’t always just run up there to see. Also the one near Greenfield lease will be up in Oct. I was hoping they will release.
Linda if you would give me your legals i will check the OCC website and one other source i use and check and see what is happening in your area.
34 15n 12w and 19 16n 12w. They have drilled and are currently producing wells in both sections. The first date of sale was Oct. 3 on one and sometime in December on the section 34. I have not received any notification from Continental yet. This is just through word of mouth from some distant relatives.
Linda congladations on the wells. Nothing on the OCC website about the completions but that has been normal for Continental they are behind in their paperwork, no telling how long till you will receive a divisson order or a payment, If you receive those you might mention on the forum, some of us our watching how long they are taking since their our laws governing those. I am interested also because Continental is finished drilling our well in Grady county waiting to be fracked and figure it wil be a year til we see a check.
Hi Linda,----A good source for information is the Tulsa World newspaper on line. Go to www.tulsaworld.com and click on business then on energy. under the energy news, click on Oklahoma oil and gas drilling. This listing is updated every Tuesday. It lists INTENT TO DRILL and CONPLETIONS by county.
DON—MY FIRST CIMAREX CHECK COVERED FOUR MONTHS–JULY THRU OCTOBER AND NO INTEREST.
HAVE MINERAL RIGHTS IN A WELL IN 16-13-13 BLAINE COUNTY. WELL CAME ON LINE IN JULY OF 2011. I RECEIVED DIVISIONAL PAPERS IN NOVEMBER AND THE FIRST CHECK IN DECEMBER. CIMAREX IS THE OPERATOR
That time line is in line with the law. Operators have 6 months after first production before the first payment is due to a Royalty owner. Can you tell us if the first check was for multiple months or just one months production. Did they pay any interest?
William if you do not mind what kind of price is Cimarex getting for their gas and is it going down drastically.
OK William-That puts you within two months of last production which is the normal thing here in Texas. Glad to see Cimarex is going “by the book”. I am not sure but I think the operator has six months to begin the first payments and if it is over six months then interest is due.
Now if only the big operators would mind their store and give the Royaly owners their due.
Don—It looks like Cimarex is following the market. The July price was $4.29 and November was $3.43
I received several puchase offers during 2011. The first was in Jan. offering $2500/acre and the last was in Dec. offering $4500. The Dumas well 1-16H
(16-13n-13w) came on line in July and the Cantrell well 1-26H (26-13n-13w) was fraced in Dec. but is not in production as yet as far as I know. The offer included rights in both sections.
As a follow up on pricing, Don, I notice on my check details that there is some difference between pricing by Linn and Cimarex.
July thru Oct: Linn—3.93, 3.89, 3.70 and 3.55, 3.45
Cimarex----4.29, 4.18, 3.83, 3.62.
I guess Cimarex is a little better playing the commodity futures.
Thanks William for the update. Do you know the initial test info on the Dumas well, gas per day and oil per day?
Yes, some companies do better on getting better prices. Sometimes this is due to long term contracts they have with transmission companies or end users. Generally when sales are made at the spot price these are lower because they are competing with gas for sale everywhere in the U,S. or at the Hub where it is being deliverd to. Now there is a whole lot of gas for sale in the U.S. Therefore the plunging spot price.
If we had access to all the gas sales in the Woodford play, the differences between what companies sold their gas for would be a lot greater than the differences you show on your division order. Among those millions of cubic feet sold there would be some prices above $5.
DON, THE WELL IS STRICTLY GAS AND IS PRODUCING ABOUT 97,000 PER MONTH(NOV.) THE INITIAL FULL MONTH PRODUCED 190,164.
William-Thanks for the info. For what it is worth, the Dumas well had declined around 50% in the first six months of production. This rate is a little faster than a decline curve more to the SE with oil involved. You will see further declines as production continues, how much, I don’t know. But be prepared for declining payments in the Dumas wells due to the decline curve and dropping gas prices.
The lack of a normal winter across the U.S. and very much gas coming out of the Marcellus shale in the Northeast has wrecked gas prices. Boom or bust, that is the story of the oil business. I have been involved in the oil business since 1953 and this is either my sixth or seventh boom/bust cycle to witness. Oklahoma right now is heading toward the peak of the boom. Believe me, the bust will follow.
That is, if we don’t go to war with Iran.
DON–THANK YOU FOR THE INFO. I GREW UP IN OKLAHOMA(GRACEMONT AND LAWTON) SO I AM AWARE OF THE BOOMS AND BUSTS BUT HAVE NOT HAD AN INTEREST UNTIL ABOUT 1991. THE $4500 OFFER FROM ARROWHEAD FOR MY INTEREST IN SECT. 16 AND 26 GOT MY INTEREST UP BUT OUR AUNT REQUESTED THAT WE NOT SELL THE MINERAL RIGHTS. I AM 82 YRS OLD SO IT DOESN’T MAKE A LOT OF DIFFERECNE TO ME.