New Member, learning mode. Read all pages. questions on Multi unit well Sec 31/30 16n 12w. Cimarex Spud well early December, Does anyone know anything on this area ? Have received offers to buy our small mineral interest. We are in sec 31. Well not showing completion yet, they were to frack in January.
The well spud just inside the northern border or 31 and drilled north into 30. You will not get any production from it. However, there is quite a bit of drilling in that township, mostly horizontal, so you 31 may get its own well. That well in 30 will not be reported for many more months. It will usually show up on the public lists about four more months from now. This area is generally drilled for Mississippian or Woodford.
Personally, I would not sell right now. This area has potential at several reservoir levels. Many companies are out there making low offers and trying to scoop up acreage to hold until later. Do what is best for your family, but if you do decide to sell, get at least three offers.
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Thanks for your information, we are in 31. it was drilled for Mississippian, Woodford & Hunton.
Is this just not a good area for production ? Just curious why they would spend the money to drill it ? Are you saying 31 may be better than 30 ? Yes it was a horizontal well. Don't plan to sell, would rather see what may come, I have read your posts and thank you for all the knowledge you share. Please share any other information you have on section 31, again thanks!
M Barnes,
Could you clarify a little for me on your answer, is this a area that won't produce ?
Quite often the operators will have the surface location of a well just over the border in another section so that they can drill straight down in that section, make the turn and then have the horizontal and its perforations completely in the adjacent section. They only pay royalties for the section that has perforations. That explains the 31 SL and 30 perfs. That is why I said you will get no royalties for the first well since no perforations are in 31. Nothing is wrong with 31 (as far as I know). They just haven't gotten around to it yet. The Woodford, Miss and Hunton are quite extensive and range across many counties (and states). There are horizontals all around you. Given the low oil and gas price at this time and their cost cutting, many companies will wait as long as they can before they start new drilling. Nothing to worry about, happens all the time. Hang onto your acreage, in my opinion. I am certainly hanging onto mine in Blaine.
If it helps, think of one of those bendy straws. Hold it upside down. Now bend the bottom end to a right angle. Pretend that the long part is the vertical part of the hole in your 31. The bend goes over the section border and the short piece is the horizontal part of the hole. They are now allowed to perf within a certain number of feet of the border to protect the drainage of the other section. So the perfs will be in the short part of the straw in section 30 to the north. Actually, some of these multi-unit wells are actually longer in the horizontal direction than in the vertical. Does that help?
Ms. Barnes, Yes that helps a lot, it's where the perfs are. I guess if 30 does produce as others around 31 have, maybe down the road they will drill 31.there are a lot of small owners in 31. Cimarex has the lease for another year. We keep getting offers to purchase the our acreage, we will keep it. I have learned a lot from your posts, thanks.
sorry one more question, How can you tell where the perforations are or will be?
You can get a general idea from the permit. It will sometimes have a map on it and now that I see the permit map, you may get some perfs in 31. The first source I saw had the well as shorter. At the end of the permit, you can find the pending CDs. I looked up 201505488 and 5487 and found the exhibits. Good news for you after all. Looks like maybe 1/3 of perfs in 31 and 2/3 in 30. After they drill the well, they come back and amend the final percentages. They will also be on the Division Order that comes after the completion.
http://imaging.occeweb.com/OG/Well%20Records/1DD3BE7B.pdf permit
http://imaging.occeweb.com/AP/CaseFiles/occ5246088.pdf map of well path
http://imaging.occeweb.com/AP/CaseFiles/030B16A1.pdf Application tells the path of well-proposed. 201505488
http://imaging.occeweb.com/AP/Orders/occ5249160.pdf Orders for 201505487 Also has the well path on it.
M Barnes, Thank you Mam, for the information. I have been reading everything I can trying to educate myself, I did talk to the land man at Cimarex also & he said it took longer to drill, rock was really hard to drill. he said they should frack this month and then complete. Hopefully there will be good production... like you have said before, he said if it's a good well, they are looking at a lot of re-drilling additional wells. gotta have a good one first.
M Barnes, If I may ask a couple more questions. I refer to a good post you did on 12/17/15, I have seen the phrase " a good well" what does it take production wise to be a good well now ? How much do these wells bring in money wise today with prices so low ? Is the core expanding in Blaine county , if so what areas. Sorry if these are dumb questions, also is harder rock formations good-bad or mean nothing on a gas well?
A good well is relevant to the area and reservoir that it is in, so kind of hard to answer that one. Depends upon whether it is oil or gas.
The amount of money a well brings in is (in general) the barrels of oil per month times the average price of oil that month (that the operator gets-not the WTI price) plus the mcf/month of gas times the average price of gas (that the operator gets). Then taxes are taken out-both severance and State withholding and depending upon your lease any post production costs are taken out. You get the decimal amount stated on your Division order. The equation is net acres/spacing unit x royalty percent x % perforations in your section if a multi unit well. Gas prices have not changed as much in the last year as have oil prices. If prices go back up, payout goes up and vice versa. You can use WTI and Henry Hub prices as a general guideline, but each operator actually has their own contract prices that they receive based upon the quality of the hydrocarbons. (If there are NGL's, then you get paid for them as well.)
I would direct you to the maps in the Cimarex and Newfield presentations that they post of their websites. The southeastern part of Blaine is quite active right now.
"Harder" rock is usually "Tighter" rock and has less porosity (holes) and permeability (connectors between the holes-think of a bar bell). Gas molecules are smaller than oil molecules, so can get through the smaller pores and pathways. Harder rock is also tougher on drilling bits, so it takes more time to drill through it.
M Barnes, Thanks for the answers,