Drilling Unit Question

OK, so we got our 1st well drilled and producing last year (RKT Carda 7-6 #1H) which was drilled on a pad located in Sec 7 on this GIS map where our mineral interest is. The horizontal portion goes directly North through Sec 7 and BHL at the North end of Sec 6. I see that a few weeks ago permits for RKT Carda 7-6 #2,#3 and #4 have been approved. These 3 additional wells are: SHL: NE NW 18-25N-59E (571 FNL/1336 FWL) and PBHL: 20912’ 6-25N-59E… which, if I read this right, will go North (roughly as I’ve drawn in red) through Sec 7 & 6… . Shouldn’t these 3 additional wells be in the same drilling unit, and thus we will receive royalties from these??RKT Carda 2-4|690x387

I e-mailed Kraken to ask, but the DO Anaylist said he did not have the information to telle for sure as the “elections are just being processed”…not sure what that may refer to…??

Yes, those new wells will be in the same unit and you will receive royalties from them.

Thanks, Steve…I was pretty sure they would be, but the fact that they are drilling those additional 3 wells from a different pad, in Sec 18 has puzzled me. Have any clue why they would do that??

It’s too far to reach all the way across the section from the existing pad and make that bend back to the north to get to the west side. They could probably have drilled at least one of the new wells by expanding the existing pad, but probably just cheaper to drill all three from the new one. By moving the surface location south into 18, they have more room to angle the well sideways to get to the proper position before entering Section 7 heading due north. You can’t just turn the wellbore 90 degrees on a point. They won’t be producing from Section 18.

Thanks, Steve, that makes sense now!

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