Hi all! I have been diligently following posts and responses here for last few weeks so that I can better understand the situation I find myself in and before reaching out to those more experienced.
I am in need of information and advice:
Two years ago I was notified by mail that I had inherited 10 mineral rights of land in Laramie County, WY.
The land tract was 170 acres and divided among family, from my grandfather.
Herco contacted me shortly after and asked to lease my mineral rights for 250.00/acre and 16% Royalty
I have not heard from anyone until last week when I received a Division Order from Helis Oil and Gas.
The Division Order is showing that the acreage is 1280 acres and (pooled)
My royalty interest was correct and so I signed and sent back.
This week, I received another Division Order from Helis and Oil and Gas
Its showing the same information but at the end of the Well it shows a 2CH instead of the 1CH that 1st set of Division Orders showed.
When I attempt a search on line, the well is showing but with another number (other than the ones shown above on it)
Example:
Sandberg 16-63-67-18-1CH
Sandberg 16-63-67-18-2CH
The information I found on line regarding the permit shows Sandberg 16-63-67-18-6CH
and I found some other information showing Sandberg 16-63-67-18-4CH not in production
I am not exactly sure what all of this means. Why am I receiving Division Orders with different numbers at the end?
You have multiple wells in the 1280 acre spacing unit, all of which you will get a share of. The 1CH and 2CH are currently in production or will soon be. As far as I can tell the others have not been drilled yet. Hopefully for you they will be, but it is possible that the operator will want to evaluate the first wells before committing to drill any more.
FYI, the numbering system can be interpreted as:
Township - Range- Surface Location - Unit Description - Slot in Unit.- Formation Code
So we have Township 16, Range 63. The surface location is in Section 6. The well is producing from under Sections 7 & 18 and the well slots are labeled 1-8 from West to East. The CH at the end stands for Codell (the geologic formation) and H is for horizontal. Due to the way Sections are numbered, Section 6 is north of Section 7, which is in turn north of Sec 18. So the well is drilled from Section 6 to the south under Sections 7 & 18. Amazing technology, if you think about it.
So, I received another set of Division Orders for a third well.
Looks to be the same standard form as the last two.
Shows this one to go into production February 25th
My question is, where do I go to see production of each well. I researched the well wells name and location on shaleexp.com and it’s showinorr wells than I have received paperwork for.
In your opinion, should I subscribe to drill edge and/or shalexp to have more insight to what is going on?
Lastly, I’ve researched the company that is sending me paperwork and they appear to be a smaller oil and gas company that the average. Should this be a concern? Bottom line, I want to make sure we are dealing with a reputable company. They appear to be drilling quite abit in the area we are located in.
Any info is greatly appreciated. This is all new to me and seemed to come out of nowhere.
I want to make sure I am educating myself on the procedures and processes.