Kenneth,
If XTO drills 4 more wells, also there are different formations in the area, so XTO could go for the CANEY formation, which I think is oil. So yes, in the future.
Daniel,
Thanks, all I needed to hear. I didn’t mean to sound flippant about the dollar figures on this, I just have no idea how it all pans out. So…I’m happy! I’ll wait for XTO to send me whatever I have coming so far and keep on top of learning about this whole venture I’m into. If I have questions in the future, I hope you don’t mind if I ask. Thanks, again.
Kenneth,
Anytime.
Also, because the Stephens board is much more active, I go there alot also. That is where I learned about the 12% Statutory Interest.
Daniel,
Honestly, it's fine whatever it turns out to be. My Dad left it to me and if I get anything from it I will be happy. Just wanted to know more to see if all my efforts on getting the heirship filing paperwork done was worth the effort. Thanks.Daniel,
I get that concept......for sure I will! Never been involved in this kind of business before, so I'm sure there will be plenty of questions. Again, a silly question, but is there really enough in this lease to be considered really profitable? Considering the small size of my mineral rights interest, I have no idea.Kenneth,
Lets say there are 10 acres of mineral rights. Your share of the section is 10/640 or 0.015625. Most leases are 3/16 or 0.1875, therefore you should get 0.015625 x 0.1875 or 0.0029296875 of everthing produced.
Lets say the well is producing 50 bopd or 1500 a month and oil is $95 or 1500 x $95 = $142,500. Now lets say the well is producing 1000 mcfd of gas or 30,000 of gas a month at $4.00 is $120,000. Therefore you would get $142,000 + $120,000 = $262,000 x 0.0029296875 or about $767 a month per 10 acres of mineral rights.
Is there a time when you did not receive a check?
Daniel,
The last check I got was in May of 2012, nothing since, because I notified them of my dads’ passing and that I was getting probation taken care of.
Kenneth,
I was checking out the SHL of your well and it is less than 1000’ north west of my well.
The only reason I used mcfd, is that is what is stated on the completion report. The mcfd of gas includes, residue, natural gas liquid (propane, methane, octane, butane, etc), dry gas, and now they are listing Fuel witch is another gas. So I am over stating the royalty amount somewhat.
Daniel, OK, Thanks again.
Daniel, Also, everything has been filed and recorded in Carter County already. XTO has all of that paperwork and has approved it, by what they say.
Kenneth,
Set some money aside for taxes:)
Daniel heavy oil has to be refined differently but its all good
I’ve noticed in the last couple of days that there are some wells with high "Oil-Gravity (API)’ numbers. Some as high as 60. A number of 46 is considered light crude, as stated on one website. Also, it seems that there is a lot more oil around, especially in the CANEY formation.
Bob,
I found the scale for API numbers.
Classifications or grades
Generally speaking, oil with an API gravity between 40 and 45 commands the highest prices. Above 45 degrees the molecular chains become shorter and less valuable to refineries.[1]
Crude oil is classified as light, medium or heavy, according to its measured API gravity.
Not all parties use the same grading.[2] The United States Geological Survey uses slightly different definitions.[3]
Crude oil with API gravity less than 10 °API is referred to as extra heavy oil or bitumen. Bitumen derived from the oil sands deposits in the Alberta, Canada area has an API gravity of around 8 °API. It is “upgraded” to an API gravity of 31 °API to 33 °API, and the upgraded oil is known as synthetic crude.[4]
I don’t see the grade of oil reflected on my royalty check. XTO talks about gas ‘BTU-FACTOR’, but no API numbers.
I think those high API numbers are condensate. My arm chair general understanding is that 40-45 API is the highest value light crude and condensate liquids are in the 45-75 range.
We have the mineral rights to 225 acres, Section 29 & 30, Township 4 South, Range 3 East. Currently leased by Exxon. I am curious if anyone has information on drilling and productivity in this immediate area now and in the future. Please comment if you have any knowledge of this area and what I might expect! Thank you, Sid Eby
Sidney,
I found 6 wells in your township.
2 in section 6, 1 in 10, 1 in 12, 1 in 17, 1 in 23 and 1 in 24.
I found 19 drilling permits.
1 in section 1, 2 in 4, 2 in 6, 2 in 7, 2 in 9, 2 in 10, 1 in 12, 1 in 17, 1 in 24, 1 in 26, 2 in 27, 1 in 28 and 1 in 34.
If you could draw a line from section 6 down to section 36, that seems to be the main line, but they are going on both sides of that line, buy the width of the play. So you many not have anythng today, be patient and I think you might see some activity later. There just isn’t enough drilling rigs to go around.
Ronald,
About a month, you think, until first sales date?
Daniel, unless pipelines are close, since they are td’ing ahead of the forecast 39 days, and I don’t have a clue how long the frac will take, it all could happen sooner. They have 6 months to pay after completion, so that would put it in August from today which is not completion.
Daniel as I understand it they drilled to the south, made the turn in the Woodford, and drilled to the north edge likits in the Woodford. I think the drilling is essentially done, frac and associated completion duties are the unknown. Assuming a good well a check anytime in the future will be welcome.