Burke
Pam, I also have an interest (a royalty interest) in the Cecelia. There was a ranch in the southern part of T161N R94W with mineral rights in several sections along the south edge with T160N R94W. There are four Bakken wells recently drilled and now producing from this acreage as well as recent wells in the northern part of T161N R94W. There are three wells with rigs on them today. Three rigs in the same township - this is unheard of for Burke County. And they intend to start two more wells very soon. Continental is the operator and/or permit holder for all these wells. Production has been modest (I don't have the accumulated production totals per well), but their objective of holding these spacing units by production will likely be complete by Christmas time. Then it is a question of in-fill drilling. There is a case on the November docket to allow fourteen wells per spacing unit in the Stoneview field. Petro-Hunt is drilling and operating just to the south in the lower sections of T-160N R94W, and Oasis is very busy just to the east.
The Knutson drilled in 161-94-15, spacing just above section 27 looks modest but it has also only produced anywhere near full months for 4 of the nine months production and it does not have a pump on it yet, still produced 25,383 bbl oil. I also believe that they did not go all out but drilled the well to a price point [judging by the area as I did not dive into the wellfiles this time, but I would suggest you do and check the completion, it's not going to be 40 stages and full ceramic propant] with modest costs. It serves the purpose of holding the spacing and I think it will make money. Following wells could be optimized or more of the same.
I see 3 wells spud in 161-94-21 in October-November of 2013 likely not completed yet but you could scour the General Statistics for sales report, even try Googleing, there may have been an IP press release, but I doubt they have started producing yet.
Same for the Bildt, spud 11-12-2013 it takes about a month to drill an XXL long lateral well and with the storms lately, I doubt fracking is going on schedule, just too early to gather information.
The fact of three wells spud almost simultaneously in section 21 would lead me to believe that the operator has confidence in the area, probably due to what was learned from the previous offset well/s. Good luck with your decision. In your place I would either participate or go non-consent to keep my options open. As non-consent, the operator still sends me offers to lease along with each new AFE to which I reply, no thank you! I don't miss the bonus and small percentage royalty increase over the statutory royalty. If your mineral rights in the spacing are that small, is the difference between 16% statutory and 20% royalty really going to be significant? Ownership of proven mineral rights could possibly be sold for a significant amount if you are hungry for a larger return in the next couple years, but not so much if you sold an 80% net revenue interest in your minerals for the bonus price, then you only have 20% left to sell, if you so chose. I like to keep my options open.
Pam said:
Awaiting AFR for Vibe 161N range 94west section 26, and for O'Neal 161N-94W-sec 28 & 33.
Ellison is 161N-94W-sec21 and Bildt is section 25.
Any info to share on these???
Good morning ~do you know any new info on 161N 94W sec 27 & 34, sec 28 & 33, 16 & 21, and 26 & 35? Just curious if you may be aware of any recent activity or info… Thanks you.
I’ve tried to research the areas but I haven’t had much luck so when I ask for new info, I refer to any knowledge you may know of for the areas mentioned. Some of you have access to materials that I do not. In addition, you also have more experience with this topic than I do. However, I continue to read and educate myself on the many aspects of the oil & gas world. Thanks is advance for your input.