Received an offer to sell my mineral rights in Sec. 9-11N-6W this morning for $11,000 per NMA. No interest in selling, just info.
Don, is your acreage currently under an existing lease?
If so at what royalty?
R Story, yes it is under lease at 1/4
Emma,
Sorry, I just saw your question. You can pull recent sales of Minerals from the clerk records and check the doc stamps for prices. Occasionally, you will see a conveyance of a stated NMA and calculate the price per acre.
Then you can pull pooling information from nearby sections if available and determine a ballpark for the going leasing rates.
If you build a large enough map combined with multiple data points from multiple sources, you can obtain a good idea of prices in your area.
Is there any activity in Section 29 11N 8W? I received a bonus offer for around $3000.00 per acre, with 1/5 royalties. Does this seem reasonable?
Something must be happening…Thanks.
Hello all, Just wondering if anyone has any offers made on Sections 32-11N-5W or 29-11N-5W? Just wondering what the going rate is?
Nosley Scoop/Jones energy has 2017 orders for a horizontal well in 31-12N-5W. Case numbers at OCC :
201605899 and 201605900. I don’t see a permit yet.
Nothing new on 7-11N-5W. Most of the activity in that township is in the southern half right now.
No drilling in 17 yet, but some leasing in early 2017.
I am sorry M Barnes, Should have been Section 17 Township 11 N, Range 5 W
Citizen Energy has a bunch of pending causes on the docket at the OCC in those sections. Their poolings in 29 and 32 were just dismissed, but the one in 31 is still pending. If that one gets orders, then that will be the ballpark rates for yours.
Thank you M Barnes, You mentioned activity in lower half. Anything happening in Section 7, Township 11N, Range 5W ? Thanks again
M Barnes…just wondering where you find your info on the wells in Canadian County? Thanks for your help!!!
Story from today’s Oklahoman.
Oklahoma STACK development still in first inning, energy executives say
by Paul Monies Published: September 22, 2017 5:00 AM CDT Updated: September 22, 2017 5:00 AM CDT
Continental Resources Inc. is an active driller in central Oklahoma’s STACK play with nine total rigs, including seven targeting the Meramec and two targeting the Woodford. [Photo provided]
There’s been some home runs with monster oil wells coming online, but development in Oklahoma’s STACK formation is still very much in the first inning, executives said Thursday at the DUG MidContinent conference in Oklahoma City.
That baseball metaphor was referenced by several presenters as companies outlined their plans for continued development of the STACK, broadly defined as six counties west and northwest of Oklahoma City.
Newfield Exploration Co. was an early pioneer in the STACK and gave the play its name, which stands for Sooner Trend, Anadarko (Basin), Canadian and Kingfisher (counties). Companies are drilling into several formations in the area using horizontal drilling and hydraulic fracturing.
Newfield drilled is first STACK horizontal well in 2012. The company now gets two-thirds of its production and spends 80 percent of its capital in Oklahoma’s Anadarko Basin, which includes its holdings in the STACK. Newfield has grown its STACK acreage to 350,000 net acres.
“We’ve just begun to scratch the surface,” said Trevor Reuben, Newfield’s vice president of corporate development. “There’s over 10 productive horizons in the Anadarko. The boundaries of the STACK are getting stretched further than we initially imagined.”
Reuben said even with oil hovering around $50 per barrel, the STACK and SCOOP formations in Oklahoma are competitive. That’s partly because good initial production of wells helps shorten the time it takes to make the well profitable. Companies are also squeezing more out of wells from advances in hydraulic fracturing.
’An amazing science project’
Newfield has embarked on pilot programs in the Meramec formation to test different arrangements of horizontal and vertical wells and the best ways to space wells.
“That will bring us a tremendous treasure trove of data,” Reuben said.
Newfield’s Stark infill pilot has 10 wells per section, and the company is experimenting with controlling hydraulic fracturing flowback in order to maximize oil recovery.
Reuben called the company’s Velta June infill pilot “an amazing science project.” The Velta June project has 12 wells per section, with the company using an assortment of fiber optics, high-resolution pressure monitoring and DNA rock sequencing to see how the wells interact.
Reuben said Newfield is using what it has learned so far in the STACK to explore another Anadarko Basin area, the SCORE, or Sycamore Caney Osage Resource Extraction. The company committed $100 million in capital to test the potential of the SCORE and expects to have 10 wells online by the end of the year.
Meanwhile, Continental Resources Inc. said it had impressive results lately in the STACK, including the Tres C well in Blaine County. That well had a 24-hour initial production rate of 7,442 barrels of oil equivalent, including 40 percent liquids. Continental has nine rigs in the STACK, with seven targeting the Meramec and two targeting the Woodford.
“Density testing is really important at this time,” said Blu Hulsey, Continental’s senior vice president of government and regulatory affairs. “It really is a tremendous resource that we’re just now figuring out. We want to make sure we can optimize the space in the areas we have.”
How long after a rig quits drilling does production begin? Is there a rule of thumb or is it completely random?
Jeffrey, maybe add an extra two weeks or so for the two section wells. The extra drilling doesn’t really take that much longer. Some operators are faster and some are slower. Avg 5000’ might be three-four months, avg 10,000 might be four-five months as a generic ball park. Also depends upon the depth and if they are in an overpressured zone. If you have to set that extra string of casing, it takes a bit longer due to pulling pipe, setting casing, letting cement dry, running the cement bond logs, etc. That can add another week or two. Any time to you have to pull a bit and pull out a giant string of drill pipe, that also slows things down, so those longer and deeper wells take more time. The drilling part is fast, it is just the “in and out” time that eats up the money and time.
David, check your well permit. Almost every horizontal well is spaced at 640 for each section since they pay by the section, but the permit will tell you if it is extended reach. That will give you an estimate of the time. If you are looking at spud to check in the bank, I usually estimate 10-12 months depending upon the MD of the well. You have to factor in the check cycle for the particular company as well. You might get 1st sales in the early part of the month, but if their check cycle is late month, then you will be delayed an extra month due to the timing. The first check will include the first five-six months of royalties at the highest and best production of the well, so don’t expect any of the following checks to be as large as that first one.
David, it depends…
If it is just one horizontal well and everything moves smoothly, it may take about three-four months from spud to first sales. The division order comes out about five months after first sales and you are supposed to get paid six months after first sales.
However, if they are drilling quite a few wells on the same section, then they usually drill them all first and then frac them all at the same time using what is called a zipper frac, which I can explain if necessary. But that means that the first well drilled may be sitting uncompleted for many months while the rest get drilled. Then they will all come on line at about the same time after the final well is frac’d.
Any mechanical difficulty, crew shortage or pipeline delay can delay the generic time frame. Hope that helps.
Martha
What are you seeing for spud to release on the 10000’ laterals these days?
David, if you want to share the S-T-R, I can give you a much better idea based upon the wells around it. Yes is the answer. A much higher YES. You can friend me with the blue icon next to my name if you want the answer privately.
James,
The Woodford is a Devonian Shale that is the main source for most of the Oklahoma production for old shallow fields. There are several others, but it is the biggie. It is now a prolific shale reservoir. It sources itself. That language is used in the OCC hearings.
I know there are many unknown variables so this question might not have an answer but would should I consider to be good, bad or just fair from a mineral acre? I have a 3/16 lease in Canadian County and they are just now starting to drill. I really have no idea how much or little an acre can net. Can anyone say how much an acre can or should generate? I’ve been told wells produce at their best in the beginning and decrease as the years pass but what would be considered a successful dollar per acre average? Thanks