Just wondering about sections 12,13 and 5 in Grady county. Any projections on new wells. Continentel is drilling in 12 and 13 and Marathon in 5
You have to give the complete section, township and range. There are quite a few section 12, 13 and 5.
Sorry. I’m a novice. Section 5 township 6N range 5 west. Section 12 and 13 Township 6N range 6 west
What exactly are you trying to ask?
Continental has a Unitization pending in section N/2 12-EN-6W for the Goddard. They already have quite a few wells in 12 & 13. Three Ewing horizontal wells drilled back in 2015-2019. Williams wells Drilled back in 2019. I do not see any new wells.
Marathon does have quite a few OCC cases for 5-6N-5W. Some were dismissed and some have extended time frames due to Covid. Mary B and Medley wells. I do not see a spud date yet for them.
Also. What does spud date mean?
The date that drilling starts. Oil patch has some unique language for sure!
Thank you for your response. I really have two questions. One you answered as I’m getting royalties off the Goddard and Ewing. Can you explain what Continental is trying to do with Goddard? Secondly how long typically do wells produce? My question comes from the perspective of my retirement. I sold some rights to Continental in 12 and 13 with the thinking the wells would produce for a long period of time due to the price obtained per acre.
I really appreciate your knowledge and taking the time.
Thank you
Some horizontal wells are predicted to produce for decades. Most of their revenue is usually in the first few years. You should have received the unitization paperwork from the OCC for the Goddard zone. I have not read the full packet. Generally, in a unitization, several companies have drilled a common horizon over several/many sections. In order to capture the most revenue and drain the reservoir efficiently, the companies will come together and pick one operator to run the whole thing, drill new wells, facilitate secondary recovery, etc. The unitization must be cleared by the OCC and voted on favorably by a majority of the mineral owners. Can extend the life of the field for many decades. I have acreage that has been online for over 100 years due to secondary recovery. Reading the whole unit application will give you the plan for the Goddard as being presented to the OCC.
Thank you. So I should expect revenue to remain consistent out of Ewing for decades?
No, wells naturally decline in volume as the pressure decrease. Prices fluctuate every day. You will see continuing natural declines in volumes which might be offset some by rising prices, but could just easily be offset by declining prices. If new wells are drilled, then you will see an uptick in volumes and revenues for a while, but they will immediately begin their volume decline.
Thank you. But well could produce revenue for decades. Correct?
Wondering what? You need to ask specific questions here.
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