Hello, friends. Been through a lot getting this squared away with advice on the forums.
I recently got a small pamphlet explaining construction of the well and the Order of Commission. It talks about three horizontal wells being dug into three formations, and I have an ORRI for this section.
Wondering does one find out when production begins? Is there anything more to do besides the pile of paperwork already submitted? Or just wait for additional mail?
Thank you.
You should already be getting paid on the Liberty Valence well. If not, contact Continental Resources. You can toss all of the mail as its just for administrative purposes, especially if you have an ORRI. Continental has proposed a new well called the Mantle 1-36 well. It is going to test the Simpson formation. There is a lot of “tit for tat” going on but it will be probably be drilled (not dug) this summer. Drilling will take 6 months and another 6 months for the title work to be done. So another 18-24 months before you see any revenue if the well is productive.
The formations listed on the paperwork list: Viola, Simpson, and Arbuckle. Are those part of the Liberty formation? I don’t know much about this stuff and how to check on if the wells are producing.
I had not heard of the Liberty well. Will try and get a hold of Continental and see what they say. Thank you for the advice.
NEVER Toss paper work on your correspondence. You may need it in the near future!
Here is the completion report for the Liberty Valance. Continental bought it in 2023.
You can check the OK Tax site to monitor production.
The Liberty Valence well is producing from the Sycamore formation. That is above the Viola, Simpson & Arbuckle formations. It was originally drilled by Camino Natural Resources with first production August, 2022. The intended target of Continental’s Mantle well is the Simpson formation that sits directly between the Viola and Arbuckle formations. Those are named in case the drillbit drifts out of zone. If they aren’t encountered in the wellbore of the Mantle well, they will be dismissed from the Applications.
You can use the administrative paperwork that you are receiving for fire starter. Anything needed is readily available at the Oklahoma Corporation Commission.
Good Luck.
This post brings up a question . When signing the next 3 year lease I get from whomever( probably Continentsl or marathon or other company would putting something similar to this “
“Should the Lessee drill, complete, or produce from any formation that lies more than 100 feet above or below the primary target shale formation identified in this Lease (hereinafter referred to as ‘Additional Formations’), the Lessee shall pay to the Lessor an additional bonus payment equivalent to [X% of the original lease bonus/ a flat fee of $Y per foot of lateral drilled in these Additional Formations/ a flat fee of $Z per new lateral in these Additional Formations].”
Would I be able to negotiate this ? I have put the 100ft in other leases but not knowing they can drill on formation above and below( think it was just to move rig over to drilll out only from another hole being drilled on same pad. Has anyone done this ?
Pretty much a non-starter. NOBODY will ever pay you on a per foot basis. But it never hurts (other than ego) to try. IMHO, go with something to the effect that 2 years after the expiration of the primary term, the lease can only be held by the existing producing zone.
The reason the zones above & below the “target” zone are named is in case the drillbit wanders out of zone. Usually if that doesn’t happen, the other zones are dismissed from the applications.
Yes I fully understand why the 100 ft clause is put in however it is a matter of a couple of factors that I omitted , when target area is mentioned along with two other formations. ( as lay of formation may cause drill to wonder however some companies have used this to drill above the targeted formation through one of the other formations as drill did not wonder into of the formation, this may not have been done locally or knowledge is not known. What I am not knowledgeable of is this , if the company drilling does drill out another hole in one of the other two formations ( provided the first hole drilled in targeted formation has not wondered out of targeted formation , and has decided to drill out form same down hole, out anothe 2-3 miles above it, I would think it would need to add amendment to mineral owners it was going to do so, then most likely ad addendum to original lease to increase 100ft to a 300 or 500ft and mineral owner would have to be notified . Then if mineral interest is substantial enough in bothsections , owner can negotiate with Company. My question was not about why the 100 ft is put in but about drilling above and below the zones mentioned as lateral stacking includes above and below in addition to moving rig over and filling out another 2-3 miles in formation (side to side) I am sure you are aware of this. , But thank you Todd for your time to explain what you understood that I was needing to know., I most likely didn’t make it clear in my question and many individuals who have lived out of state and inherited minerals recently do not understand the 100 ft clause if they are new to fossil fuel mining with the outstanding technology developed by George Mitchell and colleagues . Thanks
I appreciate your suggestion on the two year primary term also that’s probably a good deal for wells drilled so far in the townships in stephens county-haven’t produced as much as has been produced in a couple of otherr counties in other area of starte. Thanks again
