- Comment by Lee Malmberg 34 minutes ago
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Hi, I am a 'newbie' to this form and to anything in the Gas/Oil business. Two years ago I inherited about 2000 gross acres and .02198 net mineral acres in Dunn County Township 148N, R96. I have a gas and oil lease with Bakken Oil that will expire in another year. I received a DO from XTO Energy covering parts of Sec 25 and 36 T148NR96W stating that my interest is being suspended pending certain title issues. I do not know if this area and the small net mineral rights are or will be of any value. I am trying to gather info for my self and can pass on to my niece and nephew who have a smaller 'net mineral' rights in the same area. Your thought and comments are appreciated.
If the title requirements are more than an affidavit of heirship, it is likely to cost thousands of dollars. It's a good well, you just don't own enough of it. From 3-2012 to 9-2013 that well has produced 161,576 barrel oil and it looks like more than half of the gas has been sold and not flared off. Probate would probably cost as much or more than they owe you but you will be in the black eventually. You have probably received offers to sell but I would not do that as there could be as many as 20 wells on your minerals in the coming years.
Lee, your lease will not expire, at least not pertaining to the minerals that have the well on them. If your lease did not contain a pugh clause, your other minerals are probably held by production by a well that is not producing them.
RW,
You are correct that my lease did not contain a pugh clause.
What is the name of the well and were would I find this information as well and any future wells that would be going up on this acreage? When the lease comes due in a year, how would I determine the going rate for this .21 mineral acres on a release?
Thanks for all your input.
r w kennedy said:
If the title requirements are more than an affidavit of heirship, it is likely to cost thousands of dollars. It's a good well, you just don't own enough of it. From 3-2012 to 9-2013 that well has produced 161,576 barrel oil and it looks like more than half of the gas has been sold and not flared off. Probate would probably cost as much or more than they owe you but you will be in the black eventually. You have probably received offers to sell but I would not do that as there could be as many as 20 wells on your minerals in the coming years.
Lee, your lease will not expire, at least not pertaining to the minerals that have the well on them. If your lease did not contain a pugh clause, your other minerals are probably held by production by a well that is not producing them.
Lee, the name of the well is TAT-STATE 14X 36B.
The NDIC Oil and Gas Division is the best place to gather information about you well and future wells. The GIS map server is particularly useful and not too hard to learn to use.
Lee, your lease will not expire as to any of the lands included in it, whether they are drilled and producing or not. Sections should be leased separately in separate leases to act as a natural pugh clause. If you leased two sections on one lease the well in one section will hold the undrilled acres in the other section if you do not have a pugh clause. You will not be able to lease your undrilled acres because they are held by production by the acres that were drilled in the other section.
Keep an eye on things but if you don't have some acres that are unleased or undrilled elsewhere you are done and can only sit back and watch how things progress. It's a shame that simple little things like that can cost you alot of money.
Lee Malmberg said:
RW,
You are correct that my lease did not contain a pugh clause.
What is the name of the well and were would I find this information as well and any future wells that would be going up on this acreage? When the lease comes due in a year, how would I determine the going rate for this .21 mineral acres on a release?
Thanks for all your input.
r w kennedy said:If the title requirements are more than an affidavit of heirship, it is likely to cost thousands of dollars. It's a good well, you just don't own enough of it. From 3-2012 to 9-2013 that well has produced 161,576 barrel oil and it looks like more than half of the gas has been sold and not flared off. Probate would probably cost as much or more than they owe you but you will be in the black eventually. You have probably received offers to sell but I would not do that as there could be as many as 20 wells on your minerals in the coming years.
Lee, your lease will not expire, at least not pertaining to the minerals that have the well on them. If your lease did not contain a pugh clause, your other minerals are probably held by production by a well that is not producing them.
Does anyone know when additional wells will be drilled on 21269 skunk creek Mabel levins well. Township149 r93 s14-23.?
Not the foggiest as to when the next well will go in but there will be more. It's a good well, 202k barrels in 19 months but the original operator Dakota-3 E&P LLC assigned (sold) it to WPX Energy, must have needed the cash badly.
Robert shepherd said:
Does anyone know when additional wells will be drilled on 21269 skunk creek Mabel levins well. Township149 r93 s14-23.?
/> I think they sold out their whole company.
For a substantial amount. Do you know if the decline on the existing well is about to happen? Or is there no way of really knowing?
r w kennedy said:
Not the foggiest as to when the next well will go in but there will be more. It’s a good well, 202k barrels in 19 months but the original operator Dakota-3 E&P LLC assigned (sold) it to WPX Energy, must have needed the cash badly.
Robert shepherd said:Does anyone know when additional wells will be drilled on 21269 skunk creek Mabel levins well. Township149 r93 s14-23.?
Dakota-3 E&P LLC were pretty capable operators, they found oil in goodly quantities. Possibly they ran out of great places to drill?
Thanks you have been very helpful happy holidays and blessings
Does anyone know if 21269 Mabel levins well was shutdown recently 23-14 skunkcreek.?
Not shut down, a little erratic though. 3,147 bbl oil in Sept and 6,913 in October. I see production and sales from the IP date on. I hope this helps.
Robert shepherd said:
Does anyone know if 21269 Mabel levins well was shutdown recently 23-14 skunkcreek.?
Thank you very much. I was just wondering because this months royalty payout was dramatically low compared the previous payouts.
It was probably for September. If so next months should be twice as large.
With the present weather a well that has just been spud how long from beginning to end does it usually take for it to be producing? Does development of a new well usually move right along through winter.?
Drilling does not affect the drilling of the wells very much 30-40 days to drill usuallly. The catch is when it comes to fracking /completing the well. The frack water, actually a gel tends to freeze which leads to heater trucks and more antifreeze chemicals in the frack gel and that gets expensive. Some operators just wait for spring to save costs. There is a dichotomy it seems to me in this oil business, they spend money like wastrels sometimes but pinch pennies until they scream in other instances. KOG drilled two of my wells and waited 9 MONTHS before they fracked them and the price per barrel had fallen $20 per barrel by then and has not climbed as high again since, not a good business decision in my opinion. I'm pretty sure they had money to drill wells and get those leases held but since fracking could cost as much or more than the drilling they were not completing any wells. Then KOG gets a loan for $600,000,000 and they seem to have went on a fracking spree. This is my experience from watching a few years. So many wells come off the confidential list unfracked. So the drilling is immediate, even in winter and the fracking........ not so much. It's a crap shoot, some operators have their own crews and the well could be fracked immediately or they could wait to hire the crew or they can just wait untill spring and into summer until the backlog is lower and pinch a few pennies. That's what I see, for what it's worth.
Robert shepherd said:
With the present weather a well that has just been spud how long from beginning to end does it usually take for it to be producing? Does development of a new well usually move right along through winter.?
I hear a lot about well declines. But if a person has a decent share in about 4 or 5 wells I would imagine they can expect a some royalty for years to come. Correct? For instance my mother owns about 24 pct of 9pct of the royaltys on 1 well which after a year has still giving about 6 grand a month. And 4 more are expected to be coming up this year. Now with those numbers one can expect decent payouts for about 20 years or so if they all produce consistently does that sound about right? Not sure yet what she can anticipate just yet? By any chance can you give any insight according to the information I’ve been able to give you?
r w kennedy said:
Drilling does not affect the drilling of the wells very much 30-40 days to drill usuallly. The catch is when it comes to fracking /completing the well. The frack water, actually a gel tends to freeze which leads to heater trucks and more antifreeze chemicals in the frack gel and that gets expensive. Some operators just wait for spring to save costs. There is a dichotomy it seems to me in this oil business, they spend money like wastrels sometimes but pinch pennies until they scream in other instances. KOG drilled two of my wells and waited 9 MONTHS before they fracked them and the price per barrel had fallen $20 per barrel by then and has not climbed as high again since, not a good business decision in my opinion. I’m pretty sure they had money to drill wells and get those leases held but since fracking could cost as much or more than the drilling they were not completing any wells. Then KOG gets a loan for $600,000,000 and they seem to have went on a fracking spree. This is my experience from watching a few years. So many wells come off the confidential list unfracked. So the drilling is immediate, even in winter and the fracking… not so much. It’s a crap shoot, some operators have their own crews and the well could be fracked immediately or they could wait to hire the crew or they can just wait untill spring and into summer until the backlog is lower and pinch a few pennies. That’s what I see, for what it’s worth.
Robert shepherd said:With the present weather a well that has just been spud how long from beginning to end does it usually take for it to be producing? Does development of a new well usually move right along through winter.?
Depending how the operator produces the well it can give up a large part of all the oil it will ever produce in 2 to 3 years, a third or more. Alot depends on the geology. I have some wells that were completed with the horrible techniques of 2007-8 vintage, the completion was so poor that I expect them to produce about the same amount of oil and gas for a decade or more because the hydrocarbons literally have a hard time squeezing into the pipe. You need 5 years of production to get a meaningful statistical analysis. I have some wells that are producing 1/3 of what they did when they were new over two years earlier, they are A-typical in general but not for that area. Just take a wild educated guess although I would say on average that wells decline to 20% if their initial production by year 4, even less in areas that never had much field pressure to begin with. Just my opinion.
If my figures are correct my mom has about 3 and a half pct of 18 pct royalty on a 1280 spacing with what’s expected to be about 5 producing wells or more . With that over all projection I would guess it would be possible to receive something throughout the life span of these wells. We certainly are hoping. Lol
r w kennedy said:
Depending how the operator produces the well it can give up a large part of all the oil it will ever produce in 2 to 3 years, a third or more. Alot depends on the geology. I have some wells that were completed with the horrible techniques of 2007-8 vintage, the completion was so poor that I expect them to produce about the same amount of oil and gas for a decade or more because the hydrocarbons literally have a hard time squeezing into the pipe. You need 5 years of production to get a meaningful statistical analysis. I have some wells that are producing 1/3 of what they did when they were new over two years earlier, they are A-typical in general but not for that area. Just take a wild educated guess although I would say on average that wells decline to 20% if their initial production by year 4, even less in areas that never had much field pressure to begin with. Just my opinion.
I certainly hope your lease makes you a pretty penny. You’ve been a great help to us.
Mr. Shepherd, you have alot to look forward to. You are very close to some of my own acres and I expect to see 20 wells per 1280 eventually, Bakken, Three Forks (which the NDIC has declared a common source of supply) I am fairly certain that Red river will be profitable also but I doubt that a Madison well will ever be drilled on either of us. There are various other formations that can't be ruled out either. It might take 40 years to get it all drilled out with the wells needed and on mine new wells have been drilled at a pace to replace the decline of the older wells, in Dunn county at least. Really your mineral description is only rifle shot from mine so you should be in good shape.
Robert shepherd said:
If my figures are correct my mom has about 3 and a half pct of 18 pct royalty on a 1280 spacing with what's expected to be about 5 producing wells or more . With that over all projection I would guess it would be possible to receive something throughout the life span of these wells. We certainly are hoping. Lol
r w kennedy said:Depending how the operator produces the well it can give up a large part of all the oil it will ever produce in 2 to 3 years, a third or more. Alot depends on the geology. I have some wells that were completed with the horrible techniques of 2007-8 vintage, the completion was so poor that I expect them to produce about the same amount of oil and gas for a decade or more because the hydrocarbons literally have a hard time squeezing into the pipe. You need 5 years of production to get a meaningful statistical analysis. I have some wells that are producing 1/3 of what they did when they were new over two years earlier, they are A-typical in general but not for that area. Just take a wild educated guess although I would say on average that wells decline to 20% if their initial production by year 4, even less in areas that never had much field pressure to begin with. Just my opinion.