Is there any drilling activity in the Maxbass area?
I rec a letter from Corithian Exploration(USA : Division order for production from the Kveum 5-32 1-h well located on the spacing unit for the Spearfish formation yesterday. I called the co. And they said this is a producing well. Unfortunately, we have very few min. Rights leased there. Anyone else heard from Corinthian? It’s a Canadian co, but have an office in Bismarck.
Ok, the parcel I described just got off the confidential list. There are many of us in the “spacing”. It’s listed as a “good” well. Jan
Jan, I will google it and see if I can find it but it's hard to exchange information about a well when people won't tell you much about it. 32-164-78 for future reference.
The cost of such wells are I think reasonable because they are not extremely deep, the lateral little over 2200 feet between the first and last perforation. Because they are shallow the pressures are not as high as a Bakken well and do not require expensive ceramic propant sand to hold the fractures open. At 7,981 barrels in the first 71 days, it may not look like much compared to some Bakken wells but this well wasn't as expensive and the royalty is not as diluted. Because the royalty would be even less diluted I wouldn't mind owning in the very small section 29 just north of you for that very reason.
Hi W, don’t really know much more about the well. You seem to know more than i do. Maybe you are referring to the location. It’s SWNW 32-164-78.I was hoping someone on this blog, who is in the spacing, might share what they know. The well name is “Corinthian Kveum 5-32-1-H” Are you 32-164-78? Appreciate your comments! Let’s keep sharing. Thanks.
I meant to say " are you near 32-164-78? Jan
Jan, I have friends throughout the oil producing parts of ND and I make more all the time. From pulling up the scout ticket data on the NDIC, when I mouse over spacing it says sections NE/4 section 31- NW/4 section 32 and see industrial commission order for description. I believe you are in a 320 spacing. I also think it possible that you have room for 2 more wells in that spacing.
One way to think of it [providing I am correct about the 320] is your spacing is 1/4 the size of a 1280 bakken spacing with one well, so you get 4 times as much royalty per net mineral acre, so 7,981bbl for 71 days would be = to 31,924 bbl in 71 days for a 1280 with one bakken well. Not too shabby. Considering the wells cost a lot less, I think commercially it's a winner. Your well doesn't produce a lot of water either but there is a salt water disposal well in the SE4 of section 32. Looks like clear sailing except for one thing, it looks like the operator is still in acquisition mode and is busy collecting more acreage and getting it held by production. If I were you I would want the operator to get my acres into full production with as many wells as needed as quickly as possible. Now is a very good time. Later might be even better, but we don't know that. If the price of oil rises, these wells would still be producing so you would benefit. I hope they go into production phase on your minerals while the price is high.
Correction, that should have been salt water disposal well in SW4 of 32, so pretty close, meaning water would be cheap to get rid of because it didn't have to be trucked, it could be piped.
Thank you so much for the information. We received our first small check for three months yesterday. It just got off the “confidential list” but my understanding is that list lasts 6 months. .?? Jan
Jan, if I remember correctly, the first month was only 15 days so the check is really 2.5 months worth.
All permitted wells are confidential whether they are drilled or not. The true 6 month confidential period starts when the operator requests it, usually after reaching total depth. The confidential period expires for many wells before they are even completed/fracked.
Jan, as for the size of your royalty check, that is going to be a function of many things, the royalty you bargained for in your lease, how much if any the operator deducts from your check for post production costs and finally the net mineral acres you contribute to the spacing.
If you contributed 10 net mineral acres to the spacing and leased at 15% you are paid royalty from the equivalent of 1.5 acres, less post production costs if any, less production and severance taxes of 11.5% combined for oil, gas is figured differently from oil and gas may be being flared off and you would receive no royalty from gas in that case. It's hard to make much money when you give up 80% or more of what you have from the beginning in a lease unless you have a lot of acres.
People think about the Beverly Hillbillies but that was different. Jed was an owner, not a lessor. Jed, that canny mountain man did not lease, did not need an oil company to drill for his oil, it sprang from the ground of it's own accord. Jed merely needed someone to collect and market HIS oil. The oil company was Jed's hireling not his senior partner. If I recall correctly, Jed had 30 million dollars and that was a great deal of money back then and the bank had Ms. Hathaway look after Jed's interest almost full time. If Jed had been a lessor with a 12.5% royalty as was common in those days instead of the owner, I figure he would probably have less than 3 million dollars after taxes. Still a lot of money and Jed would still have been a valued customer in the Bank of Beverly Hills, but probably not so important that the bank would assign Ms. Hathaway on a practically full time basis to watch over Jed and his family. This is an example of the cruel mathematics of leasing. Jed was an owner and not a lessor. If anyone disagrees and they have a royalty check stub, take a good close look at it and consider what the reverse would be if you had 100% and you were paying someone 12.5% to collect and market your oil. Wouldn't that look a lot better?
Mr. Kennedy you are a very wise man! We have 960 mineral acres in Bottineau County. I was “family forced” to lease our acreage 3 years ago. I was against the terms of the lease but my other 3 siblings saw dollar signs!! I did force the land company into some protection clauses on my lease. I am sincerely hoping that they don’t exercise the 2 year option. As far as I know I don’t believe they have done anything with the land they leased in ND. Your Beverly Hillibillys analogy was right on. In my case the company will control 82% of the possible income earnings while I will earn 18% which after all the deduction will probably look more like 6%!!!
I have minerals for sale.
Sec. 33-T163N-R76W appr. 13.66 acres Open
My brother might be interested in selling 6.33 mineral acres in the same section and they are open too.
You may initially contact me at [email protected]
Hello everyone,
My name is Leona, My step father is Jacob Muscha and I'm in the process of helping him to figure out how to lease his mineral rights and also who to lease them to. Your help is greatly appreciated as my online search efforts have led me no where :/
Here are the details of the minerals for lease. N 1/2 Sec. 12, 163-82. In Bottineau County. Please someone help me to understand what I need to do to act on this. Thank you!
My personal email is [email protected]
Does anyone know anything about a new Ballard Petroleum well in 159-81-19? I just got a call advising that the well is good and they sent me a deed from the late 1960s. There is no lease. I am not familiar with Ballard and this is the first I have ever heard about this property. Thanks.
I’m working in Minot for a few weeks. There is an Oil Publication that shows Bottineau County as promising in the next few years. Wish we could get a lease.
I was going through my dads old paperwork and came across an Oil and Gas Lease with enterprise Oil. It show the area is 160 North, range 82 west, section 11.
I was wondering how I find out if indeed he still has this property, or if there is any activity i should know about..
thanks in advance..
FYI, the New York Times is running a series of articles on the regulatory failings and corruption in North Dakota. Very interesting reading…