I am very new to all of this, so I was wondering if anyone would help me find information on what is going on with our mineral rights and also the surrounding area? We are leased, I know they have completed one well, and we have just begun to receive royalty checks. However, they have indicated that they will be drilling more wells on our property and I would like to try to find out how I can get information about that on a continual basis. We live in SE Texas and the property is in Oklahoma, so not easy to just drive by and check. I have been reading everything I can, but I don't understand most of it. Just wondering also how the production is in our area, as I know there are quite a few new wells either completed or being drilled. Any information is appreciated!
The info I have is:
Section 32 Township 20N Range 05W West of Indian Meridian
Your revenue check is your information on a continual basis, your check is also how production in your area is, you have the answer to your questions are right in front of you. Also, unless production picks up a lot, I doubt they will be drilling any other wells for many years on your tract as it wasn't that good of a well and Longfellow has a lot leased they have to get drilled.
Thanks for the info Mr. Caldwell. We are in Oklahoma and I feel like I have spent days pouring through articles and websites gathering information…it is very overwhelming! Mineral Joe, I do not get the revenue statements…they go directly to my father who then distributes through a corporation. I know he has received two checks so far. I thought that perhaps there was somewhere online that you could check more current production, but perhaps we will need to settle for the info on the statement which is a couple of months behind. I just didn't know. I am curious to know what you see that I don’t know to look for to know that this is not a good well? Also, is it common for it to take this long to get out all of the water used in fracking? It is our understanding that the well began producing gas and oil almost immediately after fracking and that they have had to shut down production for a few days to do something to help get the fluid out quicker…and we wonder if production might possibly go up once all the water is out. Our interest and the reason for my original question, was to figure out where I should go on the internet to find information on how our neighbors wells are doing and how to find out where Longfellow is drilling. I found that there is a new permit to drill another well on our section, so that is encouraging. I have another question for the members of the forum…and again I apologize for my ignorance! If I am reading the permit correctly, they will place the well head and the vertical portion on our section, travel horizontal through our section and cross into another section, not owned by us, but by relatives of ours who are under lease. I am curious how the split is handled in Oklahoma, if anyone can help me with that. I have googled all day and just keep going in circles. Perhaps I do not know the correct questions to ask! Thanks again.
I didn't realize when you said "we" have just began to receive checks that it was your fathers interest and he receives the statements but having him give you the statement he gets would be the most recent on a continual basis and unless you pay thousands for reports, in Oklahoma it is the only way to get oil production as Oklahoma Tax Commission does not think people need to know oil production and that it is none of our business and they control it. All companies that I know are always 2 months behind on reports and anything else even the reports you pay thousands of dollars for are like 4 to 6 months behind, some state reports are as little reporting time as 2 to 3 months. Who and how did they indicate they'd be drilling more wells?
Thanks for the info. My father has spoken with several different "supervisors" and the VP at Longfellow. They have been very positive and stated that they are in the area for a nine year project which includes putting between 16 and 24 wells on our propertys. There is a bit of a problem with one of the sections and we will need to get it cleaned up before they can do the final 8, so right now it is supposed to be 16. I keep telling my family that I would expect that they can change that plan at any time and not to count on them actually putting all of those...would you think that is true? My thoughts are that they will see how each one is doing, how the landscape of the economy is, etc to determine if they will actually put all of the planned wells in place. One of the gentlemen that he talked to said that this is a "very good well. We expect it to be one of our best." My husband and I were up there at the first part of November and caught the people who record and monitor production. He said that it was doing really well, but wouldn't give us more information because he didn't know who we were. Now I am beginning to wonder if all that we've been told is true, because I realize that you are much more knowledgable than I am and was wondering about what you were seeing that caused you to feel it is not a good well. I really don't know how to read those reports, what is important to look for, or what the numbers really mean. I have been exploring more on the occ website and that is how I found the permit to drill the next well, but just opened more questions for me! Thanks for you time.
What was the oil production during those 2 months on your fathers revenue statement, it will be listed as like gross vol or lease vol and beside it price will be around $75 to $90 and it will be say 3000 or around 4500? All I looked at was the IP on the well and it had a pump on it already. Generally production levels fall are much lower and fall off fast. Unless there is a very good well they will probably only drill one well in each section because they have so many sections leased that have to be drilled before leases run out. Companies can move in with intentions of a 9 year program and move out the next day you just never know.