Don, I don’t know how long horizontal shale wells have been around, is there any history on how long one has been producing enough to keep it going? Or are they still too new to speculate? Many many years ago when I inherited the minerals I was getting a check for $250 a month and was very happy about it! My times change.
from new field energy
Tom, 32-14N/9W Pooled by Devon in July 2010 for $2000/nma 3/16. Location Exception Order issued Sept 20, 2011. These are indicators that they plan to drill but I’m not clear on the Pooling because under normal circumstances the order would have expired before now. I don’t know if they will have to re-pool or is there are extensions possible. I’ll try to find out more when I get a chance to read the orders.
Hope they put the check into rush mode too! Wish I got the newspapers from ok. Must be some interesting reading with everything that is going on
Cheryl www.newsok.com is the Okla. city paper, Devon is moving into a new 50 story office building and Continental will be moving into Devon’s old headquarters.
Thank you Richard. I just saw that building. I haven’t been in ok since I was a kid. Probably would not recognize OKC now. No wonder devon is drilling so many wells. Gotta pay for that new space.
Cheryl’s observation that the amount of her check has not declined much is because the price of oil is high. The change in the price of the oil will support the steady amount of a given monthly check. She observed that the amount of gas in the checks seemed to be declining.
If, over a period of 5 years, the price of oil, natural gas, condensate and narural gas liquids had remaned a constant with not a penny’s variation in those prices she would have seen a steady decline in her checks. Maybe 50% or more per year to be paid to her. This is the way a shale gas well works and applies to similar plays throughout the U.S.
To all that are very happy with their checks but are complaining about the price of gasoline take note. If the price of oil was $50 a barrel and gasloline was $2.50 per gallon the checks woule be a lot lower. Along with that would be a significant drop in the number of wells drilled. $50 a barrel oil will not support drilling many $11,000,000 wells. Especially with a declining output in gas and oil.
In cases of increased density wells where mineral title is virtually the same as existing wells set up in the oil companies system, DOs may be issued much faster.
I noticed out in 14N 10W area approx 3 miles to the north of where Cimarex has those 8-9 rigs in a row there was another well that was drilled and the rig has been moved down another mile to the west and cimarex is building a really big pond in between both of them. Maybe they are going to be doing a bunch of fracking in that area. Any ideas?
Somewhere in that area Devon built a very large pond and that was for their own usage of the frac water. For the water that flows back after a frac, I am not sure how they handle that. They could flow it into tanks on site and then haul it off. They may be able to recycle the frac water with the chemicals in it and reuse it. I am not sure about that part.
If you go to the OCC website and look at form 1002A… It is showing that the Ricker 1-32H had a test date of July 14, 2011 and had 205 BBL/Day OIL and 3868 MCF/DAY in GAS … Gas-oil ratio cu ft/BBL 18868. Maybe in the near future there will be more rigs on the section.
Michael, I appreciate the information and have made a few calls. Received notice in the mail today that they came to a communitization agreement covering 640.00 acres in Section 32, Township 14 North, Range 9 West. I guess that is the same thing as pooling? They will do a division order. Hope to find out what and how much it is producing. Will make sure they have all my correct info. Thank you for you time and help.
Tom, The well I have interest in is producing but we are not yet receiving royaltys, so thats the extent of my experience. I’m thinking the communitization has to do with Div. orders. The pooling order was done before drilling started. The initial production was as Tim says below and I think he could be right about additional wells. Don’t try to use that ratio to put a value on your production. One bbl. oil=$105 18800cft. gas=$45
I see on the Mineral Owners website that they are “now drilling” both sections 28,29 14N 9W. But I do not see any new spacing orders or drilling permits on the Oklahoma well info website. Think this is an error? Or just reporting lag? Which one would be a more reliable source to you guys?
Francis, what mineral owner site did you go to?
Francis i believe it is a reporting lag i do not see any new wells for either 28 or 29 except they drilled from 28 into 21 and 29 into 20. Devon would have to ask for increase density to drill other wells in either 28 or 29. I know from experience that the owners registry is showing about 5 to 8 wells that are drilling now in Grady that have been completed for awhile, they are getting there completionrecord from the Corp, comm. and the oil companies are not reporting on time since there is very litle fine for not reporting.
Francis, Devon drilled a well in the southwest corner of section 28 14 9 they recently Fracked and flowed back, I also noticed today they were putting on a well head.
The Oklahoma Mineral Owners Registry Leon. I did get ahold of them and they posted inaccurate information. It is as Richard said, they are drilling on section 29 but into section 20. I was not aware that they could do that. Section 20 owners do not loose an inch of top ground but gain all the benefits of the minerals beneath. So what if they decided to drill every surrounding section from ours? Pretty bogus if you ask me.
I really have to thank my late grandmother Jean Hampton for having the sense to never sell these rights. She left these to me as a kind gesture and I currently receive a small 35/month royalty on some other wells. But, this well was completely unexpected!
Steve If I was 99 and had no heirs, I might sale. What interest do you have? Are you keeping up with what is going on around you? Things are just getting started in McClain Co. Have you leased you interest yet? If not I would take my time, they are just getting started. We have interest in tracks in McClain Co. But have been busy watching Grady, Garvin, Stephens. My son is getting ready to start plotting the activity in McClain Co. so I’ll try to update you.