Thanks guys… Received in the mail today the copy of the spacing order from the corporation Commission on Section 10-3S-3w . From my reading this sets the number of wells that can occur in a given section . I am guessing that the next step is continental resources will apply for a drilling permit ? Also received another letter offering to buy the rights… I have a collection of these now… To bad I have not got any from Leases in Jack and Clay county ! Thanks again for information
I think I would pass on the roughneck job … They earn their money …My Aunt for many years ran a roughneck hotel in Healton and she related from the 40’s to the 70’s she met a number of individuals …
Rick you got any order or case numbers on 10,15 or 35 in 3S 3W?
Steve,
Yes, for horizontal wells. For the vertical wells they are much smaller. I don’t know how small without looking, but I would not be suprised to see the spacing as small as 10 AC.
Steve,
Its the first drilling, to get past the water table and get the casing cemented in place. The drilling permit will give the depth, but it is about 1700’ or so to about 1900’. It usually takes about a 4 to 6 days. Then the real drilling starts.
Steve , when they spud they do what is known as break tower. Up till then all crews have been working during daylight hours only. From break tower to bottom hole they will work two crews, 12 hours each, daylights, and nights. If one wants to make $60,000 to well over $100,000 with benefits for 26 weeks, roughnecking is the job
Thanks Daniel, You are a night owl also ! I think I answered my own question with further research … 640 divided by the 36 sections will mean that each working section will be about 18 acres? and the working area for this well is covering two sections therefore about 36 acres ?
another Newbie question … I own 1.666666 acres of Section 10 … Ok how big in acres is section… QUESTION II , Continental is drilling the well on section 10 and aiming for a bottom hole in section 15 . They state that they will be drilling horizontal lateral across both section . I am just trying to get a handle on a estimation of the total acres in the project and if this is common drilling in one block and targeting other locations ?
Steve,
A section is 640 acres. The most common approach is for the driller to locate the Surface Hole location in a section next to the section where the horizontal, lateral, will be drilled. This is also known as the bottom hole location. This is the section where production occurs and what the royalties are based on.
I could not find the drilling permit, which will spell out the SHL and BHL.
My guess they have not filed for drilling permit /Bearcat have not sent paperwork on options ,I opted for the 3/16th and giving continental 81.25 % felt that was a conservative call… I am taking the long look at this that even if it was a dry hole (do they have those in OKLA ? LOL) It has given me a chance to learn issues that I can bring to the Classroom in the college setting…
Steve,
The spacing order is for one section, section 10. A section is 640 AC. The order allows everyone in section 10 to royalties for this well. The working section is 640 AC. Your portion is 1.6666/640 x 3/16.
A TOWNSHIP is 36 sections, which is also 36 square miles. One section is 1 square mile.
Thanks Daniel , Now I understand the spacing order … It really impacts the amount of royalties however on the flip side allows the well to produce longer. Always trying to find silver lining in things ! Guess the next mile post will be when they file for drilling permit …
Steve,
If CR has plans in the distant future to drill more than one well, they may want to drill the first well closer to the section boundary than the rules allow. The distance is 330’ from the East and West boundary and 165’ from the North and South boundary. If they want to drill closer that CR would request for relief with an EXCEPTION LOCATION request. There is also a RULES EXCEPTION request if the wells are going to be closer than 600’.
Yes, sometimes DRY HOLES are drilled even today. Mainly by the small operators on vertical wells.
Looks like they are putting a pad net to the railroad tracks by S77 Hwy going to Lake Murray on Sec 31 T5S /R2E Has anyone heard anything on it?
Terry,
I could not find anything.
The fracing on the Dubiel was finished today. They should start on the Indian Hills next since they have the equipment on site already. Looking forward to the completion report
Thanks Daniel …
.1875
Got a newbie Dumb question … ok. trying to understand formula for Oil Royalties … I understand the amount of land you hold . (1.666666) x the over all number of acres (640) ok… Her is my question / I have agreed to a 3/16 share … I have learned that this should be entered as 18.75 . Ok there in is my question do I plug in 18.75 or do I plug in .1875 … The 2nd option results in a real change in amount of royalties … I am a newbie and Math challenged in the real work… This reminds me of a question on the GRE exam !
Linda, We need a better description. Like 21-4S-2W