Have been receiving offers lately to buy mineral rights with paying royalties in this section in Hughes. There are two wells there, New Life operated by Dorado Oil and Weather operated by Corterra Energy.I also believe a new well has been approved by the commission for Corterra to replace an old one. Anyone have info on any meaningful activity in 14 or why the sudden interest. Not sure how much these wells are producing. Our royalties are pretty small. I know Ms. Barnes always has great knowledge and insight on what is going on. Anyones help is greatly appreciated.
Many times offers are just ahead of the bit (sometimes not). There is already one horizontal well in 14 & 23, so the folks offering to buy may think that there may be more horizontals in the future. The first well was drilled on the far east side leaving room for more wells to the west in the future.
Your check stubs tell you how much your current wells are producing. Or you can look the wells up on the OTC tax site. Gross Production
Drilling has slowed quite a bit during the Covid-19 situation, so not much may be happening until the supply and demand balance is regained and prices go up to an economic level. The financial health of the operating companies will be very important as well.
Ms. Barnes
Many thanks for your input and quick reply. As I’ve said before, you’re the best!
Also, remember that you only get royalties where you own minerals. On a multi unit well such as this one, the equation is : net minerals/actual spacing acres x royalty x % perforations in your section. The final splits on the well will determine that last term. The OCC will give a final order on them. This equation would also apply to any future wells. The decimal amount may be slightly different as the length of any future wells may be longer or shorter and therefore splits may likely be somewhat different.
A follow up to my previous questions. Hughes Sec14-7N-9E. A new well is being drilled and has been approved by the commission. Said well is a multiunit horizontal well with a surface location of Sec11-7N-9E and then an allocation of 50% for sec14 and 50% for sec.23-7N-9E. Owning mineral rights in 11 and 14, will I receive any royalties from the surface unit in 11 or just 50% of what I have in 14? I’ve tried researching this but it gets rather complicated for me to figure out. Always appreciate and accept advice and information. Thank you.
The Weather #1423-1XH was drilled from a surface location in sec 11, so you look it up on the well records site in 11.
The OCC final order is from case 201707627 Order 709758. Based upon the bottom hole survey, 50% goes with 14 and 50% goes with section 23. An example of the division order would be the following if you had 10 net acres and 3/16ths royalty.
10/640 x .1875 x .50=0.00146484. Substitute your own amounts and see if you get what is on your check stub.
I do not see a new case for 11 & 14, but if there is a similar well, it would use the same guidelines.
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