Does anyone have any idea how Chesapeake’s horizontal Chester wells are performing?
No I do not know. They are finished on my well but not producing. 2 Months to drill it. Chesapeake told me it could be 6-12 months before it produces Revenue Check. I will be interested also.
Elmer Teetzen
I have two well proposals in Woodward from CHK to test the Chester horizontally $4 milion AFE
Did they have to sidetrack your well? Has it been fraced?
If you give the Section, Township, and Range, then we can help much easier.
http://imaging.occeweb.com/OG/Well%20Records/1DD79DA8.pdf
Other sections being proposed or about to drill
The well in 35 is the first horizontal Chester in that township. No news on its performance yet.
Dear Mr. Barnes, I have a Horizontal well in 35-23N -17W. It is associated with 26-23N-17W where it started. Chesapeke told me it Could be 6-12 Months before I see a Revenue Check. It was just completed. Thanks Elmer Teetzen
Elmer, That is correct. It takes about two-four months to drill and complete a one section horizontal well. Sounds like you were on the two month end. Then they have to run the title on perhaps hundreds of individuals and entities to make sure they have the right folks to put into “pay status”. They will send out the Division Orders approximately five months after first sales. The first checks are due six months after first sales.
Just found out that my family is going to receive rights to section 5, 24N, 17 W in Woodard thru Chesapeake. Anyone know of any current activity there? Thanks!
Chesapeake as filed an increased density case in section 5. If you are inheriting, then you need to make sure your probate information is filed in Woodward County. You should receive the OCC hearing notices. You can look up the current ones at the OCC OAP site. OAP.
The two cases are 201805352 and 5353. The well will be called Tambora 5-24-17#1H
You can look up the info on it at the OCC well records site. http://imaging.occeweb.com/imaging/OGWellRecords.aspx Type in 0524N17W in the location box. The well spud in late September. If successful, the Division Order will come out about five months after first sales and you will get paid about six months after first sales.
Thank you! This was very helpful to us. I have a bigger question and if you can’t answer, I will understand…we understand that royalty payments have not been paid out since our uncle died almost 37 years ago… what can we expect as a payout in ballpark figures? We understand that there are a lot of factors that play into this, but any information would be great!
I can’t really answer that very well at the moment. Any new wells might be vertical or horizontal. Those would have vastly different answers with the horizontal being much higher. This new well is going to be horizontal, but it is not as long as most and Woodward County doesn’t have as many horizontals for me to gauge by. In general terms, the first check you get will be the highest since it will have about five-six months of the best production from the well. The second check will be for just a month. Horizontal wells have higher production in the first few months and then decline rapidly as the pressure decreases. This is normal. Then the wells can taper off and go for decades at low rates. We call it the hockey stick curve. The blade is the first two years and the stick is the next many years.
The equation for what you will get in royalties is this:
net acres / gross acres x royalty x % perforations in your section.
In this case, your well is all in the one section, so that last term is 1.0. The decimal amount from the equation is what you will make on every dollar that is made on the well (minus any post production charges and taxes).
Thank you again for the information!
We were kinda shocked that this was out there and we knew nothing about it. The web site that you gave me was very informative about what we are about to deal with. I am sure that we are going to have lots of questions in the future. We were told that all of the built up royalties have accrued interest as well, so needless to say, we are doing a little dreaming at this point.
Is this kind of “find” normal? Have others come across this situation before?
With all of the mergers and acquisitions over the last few years blended with generations passing lands down, ownership can fall through the cracks. We found a few “lost” wells last year that were a nice surprise. We had to remind a few companies that they owed us interest. I like those kind of checks. 12% adds up (for clear title).
Feel free to ask questions! That is what the forum is for.
We just hired a attorney in OK to help us with all of this. Can you tell us what we can expect going forward? We know that we will have to file for probate in the county that the deed is filed in, but what can we expect after that?
Better to ask the attorney that question. Once the probate is done, you will have to file paperwork in every county that you have minerals in. Name, address, legal description of acreage, probate docs, etc. Once you are legal, then you can get paid the royalties.
New question! I have read that the interest rate one unpaid royalties is 12% annually. Is that no matter if there is a clear title or not? Thanks again!
It is 12% with clear title and 6% if they have to cure the title.
Dear Ms. Barnes, I have a question. What is the probability of another Horizontal Well through 26-23N-17W into the Section 35-23N-17W? If they have the amount of oil specified in the area? Low, Medium or Medium Hight Chance. Thanks Elmer Teetzen
I cannot answer for any oil company’s plans. I can only report what is already public data. Buffco has applied for one more well in section 18 as of December 2018. Cherokee Reservoir. Devon seems to be the operator.
Chesapeake filed for increased density for the N2 SE4 SW4 of 35 in May of 2018. Chester Reservoir. That well was the Vesuvius 35-23-17 1H. If they cannot drain the reservoir with that well, then they will have a reason to drill another.