Does anyone know if something is happening in Canadian county now that would cause a landman to offer $10,000 an acre to buy mineral rights? I am not interested in selling but would like to know what prompted this offer which is considerably more than any others without having to return the call. I can’t imagine that devon’s water project prompted this but who knows. Thanks for any info.
Prices have shot up in some of the extremely good areas of Canadian county (such as sections 25,26,27,28,29 of 14N-10W), in which Cimarex is in the process of drilling NINE wells per section. In fact, Cimarex themselves sent out offers in the neighborhood of $8,000 per acre.
I don’t know where you are located, but if in this area or another with prospects of 8 or 9 wells per section in the very near term, then that might explain your offer.
thank you francis
i have minerals in 35-13-9 and last year on this forum i found out there were 3 rigs drilling but also heard that devon would not be fracking them until later due to no water…i have an increased density paperwork showing devon could drill up to 9 wells in this section…i would be quite happy if they would just bring in 1 well this year…also for those of you who had asked about the rate of decline from the wells, i have been getting checks on a well in another section up there that has been producing for not quite 2 years and the income for me is down between 1/3 to 1/2 each month from the original amount but it did not start declining until about the 15th month…but each month any amout is welcome!
thank you Gary for this exciting news…it took 8 months to get first check on the other well but i did not even know about that well til the check arrived…thanks to this forum i am better informed…and very glad i never sold my minerals that grandpa left us
Mine is in 29-14-9W and Devon hit a “above average” hole. There are 6 visible rigs up North West of us. Devon has told us that they are planning 7 more wells on our tract, but no idea when. They are recouping the cost per well in 1 1/2 years even with gas prices as low as they are because of the liquids that are comming up with the gas.
Devon purchased 4 different formations to drill in our original lease. I wonder how thick a single formation is, and how many can you get at with a single horozontal well? At first I was very wary of Devon but now I say: Drill baby! Drill!!
thank you Gary for this exciting info…so we would get any royalties from the 5 wells even though the wellheads are in another section? or just from the one that is in our section? and when you say producting, you mean they are all finished fracking, etc? i want to be clear before i tell my cousins…thanks
Thank you all for the updates
Yes, you should start getting checks in 6 months (or more) from all 5 wells. Even though the wellheads are on the section south of you the wells are drilled horizonally into your section. You should be able to click on the links below to see the permits to drill these wells. The completion reports won’t show up for several months.
http://www.occpermit.com/WellBrowse/Webforms/WellInformation.aspx?I…
http://www.occpermit.com/WellBrowse/Webforms/WellInformation.aspx?I…
http://www.occpermit.com/WellBrowse/Webforms/WellInformation.aspx?I…
http://www.occpermit.com/WellBrowse/Webforms/WellInformation.aspx?I…
http://www.occpermit.com/WellBrowse/Webforms/WellInformation.aspx?I…
Francis, You should ask Don Underwood about formations etc. He is on several of these forums and quite knowledgeable on oil and gas geology.
I know I am talking alot, but Im excited for you guys. If you were to have all 8 wells drilled in one of those sections in one year, and if you were to have only 10 acres in the 640 acre section, and if your rate were 1/5 then you could expect to get upwards of 200,000.00 your first year. Hold on to those rights, they are worth 4 times what the land man is offering at least!
Cheryl, I was out by your section last weekend and it looks like they have began producing 4 wells into your section. You may want to call devon monday and make sure. They probably won’t tell you much about the production, but they should at least tell you that they are in production.
Cheryl, actually there are 5 wells into your section one of the wellheads is located on your section and the other 4 are located on the section south of yours.
Don thanks for the information, On the permit for the Standridge 1-32H it states it is limited to the formations of Caney, Mississippi Lime,Woodford, Hunton with the vertical lateral running at the starting depth of the Hunton. Does this mean they are basically looking as the Woodford for the production or can they get production out of all of these formation. FYI since you have been studying the activity in Grady county and Stephens They have finished drilling Michaels and my sites. They moved the rig from Michaels and should start fracking soon acording to information he received from a forum responder who talkedto the driller. I went on a trip South and they were stacking my rig on the site, too far away to get a good view from the turnpike so I am just hoping everything went well and just waiting to frack. May try to call Continental at first of week and try to get an update if possible. With all the new applications for sites and pooling according to Michael things are really heating up in Grady and Northern Stephens Counties.
Thanks Don.
They can get the production from all the formations. They may have a special geological circumstance that they think all the listed formations would produce. It happens. Those formations produce in other parts of the Anadarka Basin. The closest one I am familiar with is the Mississippian Springer sand just east of Chickasha and trending NW-SE. I think there is some Mississippi Lime also in Grady. These would be verticle wells.
Richard, if you have handy could you post what production tests you know of in 7N-6W. I have five wells either completed or drilling in the township. Sections 11, 17, 27, 29 and 36. I am unaware of any others either working or permitted.
Francis-Not sure how Devon “purchased 4 formations”. A given lease covers all formations under it unless there is a depth limitation spelled out in the lease meaning that the leasing company has no rights below a specific depth. It can also include shallower depths if there are formations already purducing from wells at the shallower depth.
A horizontal well generally is extending it’s lateral along a specific formation. The thicker the formation the better an operator can keep the well bore where he wants it. The Wooodfrod shale varies across the trend now being played from NE to SW from about 100 feet to about 300 feet thick. It thickens as it dives deeper into the Anadarko Basin until it reaches, probably over 20,000 feet deep, to just in front of the roots of the Wichita Mountains in SW Oklahoma. The hot part of the play in what is called the “Core” is about 12,000 to 13,000 feet and is in the thickness range as stated above.
I am not aware (but am no expert in this play) of an operator crossing formation boundary line in a verticle direction and then turning the bit to drill horizontally along a different formation above or below the initial formation drilled.
Nine wells per unit. I wonder if that is a 640 unit or the expanded 1280 units. At any rate, these wells will drain a limited amount of the shale. The amount they drain is a function of how well and how far the frac penetrated the shale and broke it up. That is why the initial rates are so good and then fall off rapidly after the first year of production. Royalty owners should prepare themselves for this fact. It will happan and those large first checks will start to decrease and decrease rapidly over the first three years or so and then level out for some years after that.
Depending on the operator and the price of oil and gas infill drilling in a unit can happen quickly or slowly. Operators in adjacent units may porceed at different rates to complete the infill drilling. Because of the physical characteristics of the shale only a limited amount of it will be affected by the fracturing done to it. But if an operator thinks he needs 9 wells to drain a section, he is only thinking that an individual well bore is pulling from no more than about 330 feet from each side of the bore hole along it’s lateral extent.
For those royalty owners that see nine wells being drillied in the section next to where their ownership is and fear that product under their section will be drained by the wells next door, that is an unlikely case. The shale is very tightly bound and migration laterally would be extremely slow at best.
In my own opinion development rates will be determined by the water available and Devon’s large pond may be what will have to happen across the entire play.
I do not mean to introduce this forum to Geology 101 and fracturing and completion efforts. But people on this forum may have limited information about how things really work in these areas and misinformation abounds and sometimes it is not in the best interest of the individual royalty owner.
Do your homework as best you can.
Don here are what i have from my notes. McCalla 1-11H, 24bpd oil on 2-09 this is the well Continental supposely had problems with. Ballard 1-17H,212 bopd, 869 thousand ft per day. Dana 1-29H 87 BOPD and 2.5 millon ft per day. No reports yet on the IGO 1H IN 27 and the Pyle in 36 which is verticle, these are all Continentals but Western has some deep verticls in the area probalby on the map that Brian supplied us in the Grady County forum.
Al Gore is his own special interest group and he sees to it that the money keepr rolling into it so he may jet around the world (don’t jets pollute and use up vast amounts of that evil petroleum product?) to keep the money rolling in.
If I remember what little contract law I was exposed to money or value needs to change hands to make it a binding contract. If the whatever was bad that Chesapeake’s shell operations were paying with there is no contract. No contract (lease) stay off my land with your drilling rig.
What is going on with a company like Chesapeake or others like it should serve as a warning not only to potential leasing contracts but the selling of mineral interests outright. I think there will be a lot more of that in the coming months as the Woodford shale play extends across the state.