Gail, oil and condensate are basically the same. Condensate is sometimes used for light oil where crude is used to describe the heavier, thicker oil.
On Continentals Record of sale it shows 4 product codes. 1xx for oil, 2xx for Gas (MCF), 3xx for Condensate, and 4xx for Plant products. On my statement it lists sales from Product Code 200, 203 and 300 but no 100 sales. That is what makes it confusing. Why have a product code for oil? Maybe for wells that do not have Condensate?
Gail, yes the oil and gas are seperated at the wellhead. The oil or condensate are stored at the well site in the tanks and hauled off in trucks, usually about 180 bbl at a time. The oil usually eventually goes to Cushing, Oklahoma and then from there to a refinery. The gas and natural gas liquids (NGL’s) are put in a pipline and sent to a processing plant where the NGL’s are seperated out and sold seperatly. The gas is then sent to someone like ONG that then sells it to the homeowner.
Hey Richard, Maybe Gary answered your question about the green tank. Condensate maybe?
About 6 miles east of there just south of Calunet.
Some interesting information to go along with what Gary posted yesterday:
NGLs are liquids derived from the processing of natural gas that can replace oil in certain applications. In industry terminology, they are called C2, C3, C4 and C5, which stand for Ethane, Propane, Butane and Condensate, respectively. (C1 is regular dry gas, or methane).
I found a map from Cimarex listing what they concider the “core” of Canadian County. Most of the sections in these townships and ranges are core sections: 14N-10W, 14N-9W, 13N-10W, 13N-9W, 13N-8W, 12N-10W, 12N-11W.
We had 3 tanks when I was last there. Price on one gas went from 4.42 in June to 3.83 in Nov. Other gas went from 5.17 in june to 4.49 in December. Not sure about green tank.
Cheryl I got my first payment from Cont. Res. and got paid for two gases. One payment was alot better than the other gas. No sure of the difference but they have it separated out each month. Larry
Thanks for that info on the core of Canadian county. I have also learned a lot about what is coming out of our well from discussions here. I just noticed that in January check it now lists gas- mcf and res-gas. What is the difference between these two? Been getting a check for almost 2 years now and this is the first time for a listing for the two different gases. Thanks
Larry while i wait for our well to be fracked in Grady County, had right-a-way issues have a question or two. How many storage tanks are on your site, I have four and one of them is green just wondering what it is for? If you do not mind since rthe price of gas is suppose to be low what type of price are you receiving for both of your gases.
The green tank may be waste water that has been recovered.
Larry, Can you tell us anything about the Division Order process. Did you hear anything from Continental ahead of time or just when it was completed?
Thanks Larry, It’s only been a month and the wait is driving me nuts!
Thanks Larry. I never really paid much attention to what was being produced just the check amount because everyone said the royalty payment would drop drastically quickly but not true so far. And yes there is a big difference in the amount and payment on the two gases for me too.
Thanks Larry, it is nice that we all can share information and learn from it.How everyone talks it will probalby be Christmas before I receive my first payment since they are scheduled to frack on 4-02.
Thanks Rick that is what i first thought it could be just hope our well turns out some whereclose to the poduction on Michael H.
CR does not contact you until they send the division papers to you. Everything we knew up to that point I learned from either calling or emailing them and reading the quarterly reports which mention our well in a couple of last year reports. Also visited the well site 2-3 times last year during drilling process and talked to onsite CR employee. When you receive your division papers they send a cover letter stating you have and interest in a well they drilled. The division order states the owner and royalty interest which is calculated by dividing your acreage by 640 and multiply by your interest in the lease agreement. Example 40 divided by 640 times .1875 (3/16) equals 0.01171875 which would be your portion of production in a well. Example 100 barrels a day would be 100 x 30 equals 3000 x 0.01171875 x 100 dollars a barrel equals $3515.62 your portion on 40 acres minus production tax. Then you have the option for them to with Federal Income tax or not. The same fraction applies to gas production. After your first check they pay oil every month and gas every other month. It would be possible for someone to own royalty and not know they had a well until the division papers arrive. Hope this helps.
Thanks Larry, I do see 2 codes for gas-200 and 203.
Tim it mainly depends on the avaliability of fracking crews and the priority the Operator puts on a particular well. Continental finished my well in Stephens County and one in Grady County around the first week in Jan. Mine has been fracked and has been producing for 2 or 3 weeks, the other one is scheduled to start fracking on April 2. I have no idea of the criteria for multiple wells. The “core” may be expanding, we have an excellent well down in Stephens County and more drilling every day.