How do we know when drilling starts?

Oil & Gas Field Operations
1

We signed the lease a couple of months ago. How do we know when they are drilling as we don't live in the area.

Wendell

2

Wendell,

The easiest way is to call your landman/leasing entity. They should know.

Yours,

Wes Luke

3

Mr. Witt:

You didn't specify where the lease is located (State?), but you can follow any lease activity (temp. spacing; drilling permits) via the website of the State Agency that oversees oil and gas in that State. As to the actual drilling of the well, the website might have a listing of the active drilling rigs in the State, thus you could identify your mineral location on the list.

4

i have the same question for texas if it is the rrc is an operator required to tell themthe operator is the one that leases from us is he a middleman and oil co works and pays him

5

Nancy:

I didn't really understand your question but if it pertains to which oil company will actually drill a lease then here is the answer. When a Section is leased, various operators may have a % of that Section. In most cases, there is one or two operators who holds the majority leased acreage thus the actual drilling is done by one of these operators. It is actually unpredictable since operators swap leases, etc. among themselves over a period of time. The only sure way to learn the name of the oil company drilling, is when the rig spuds the well.

nancy peterson said:

i have the same question for texas if it is the rrc is an operator required to tell themthe operator is the one that leases from us is he a middleman and oil co works and pays him
6

Just in case Mr. Mallory didn’t cover the part you are concerned about Ms. Peterson, If you have been leased by a middleman, he could assign your lease to the operator for a quick profit and a small royalty percentage. If you were leased by someone other than the operator, the holder of your lease can participate in the well, paying the proportionate costs, and profiting as the operator would, if the operator held your lease. In that case, both you, and whoever holds your lease, should receive checks from the operator. I hope this helps.

nancy peterson said:

i have the same question for texas if it is the rrc is an operator required to tell themthe operator is the one that leases from us is he a middleman and oil co works and pays him
7

For many mineral owners, the first notice of drilling operations is when they get a division order in the mail, up to a year after the drillbit hit dirt.

8

Do most of the new wells drilled in ND end up on the confidential well list? Why don’t they all?

9

A.B.:

Wells that are placed on a confidential list or "tight hole" status are usually drilled in areas where competitive leasing is occurring or is an "exploratory" well where downhole information is restricted during drilling and for 6 months after the completion date. Mainly, it deals with the competition and the privacy of information. Wells which are not cofidential usually are wells which are drilled within the highly de-risked areas. Since numerous acreages in the Williston Basin don't exist in the so called "de-risked" areas, they are drilled as "confidential". This is my personal opinion and others on this forum might add additional information to the subject.

10

A. B, it seems that N.D. will grant confidential status simply for the asking, if that’s so why wouldn’t the operator request it? Oil companies will take any slightest advantage given them, will keep their business secret as long as possible.