How long does it typically take to hear something after the information release date on a well? Also, if we own the mineral rights on 320 acres and have leased for 1/6 th and we are in a1280 spacing unit would it be 1280 divided by 4 and then divided by 6 to determin our share , thanks for any feedback
1 to 2 Days it will be posted on the daily activity report and they will only post it once. Not sure about the other question though.
Ron, alot of wells are coming off the confidential list before they are fracked/completed, just because information about a well is released, doesn't mean there will be any information. I have a couple wells that it took 9 months before they were fracked. The operator in ND is supposed to pay within 150 days of first sales or they owe you interest, as long as you have excellent title, probates done, if any and deeds in your name. If you check and find that there has been production and they do not contact you within 4 months of first sales, I would contact the operator.
We were told the well was drilled in February and don’t know if it has been fracked. The only contact or communication we have had since we leased has been with the leasing company generated by me. Should we be doing something or just continue to wait?
I think the most common period for the true confidential period to begin is when the drill to total depth. Before they are drilled all well permits are confidential. This confuses some people because their well has been on the confidential list for more than a year when they "know" that confidential status lasts 6 months. If your well was drilled in february then it should have a date it comes off confidential on the NDIC O&G confidential list.
On the confidential list it gives today’s date as information release, does that mean it comes off?
You need to determine if the 320 acres is “gross” acres or “net mineral acres (nma)”. The landmen can determine through title searches the nma that you own.
The calculation is as follows: (#nma/# acres in spacing unit) X royalty interest
For you, if the 320 is NET mineral acres, then: 320/1280 X .1667 (1/6th) = .041675
Ron, you have to remember that the information filters to us through the state. I'd give them a week or two to get the data entry done, by then there should be information.
Thanks for all the feedback. I do have another question, are net acres figured the same? In other words are the same number of net mineral acres in say each 320 gross acres the same? We have 320 gross acres which is about 45 net mineral acres. Does that mean there are 180 net mineral acres in 2sections (1280 gross acres)?
To get your net mineral acres in a particular drill unit divide your share of the family mineral acres by the total family mineral acres.
For example:
If your share of the total family mineral acres is 11.7 and the total family mineral acres are 737.1 divide 11.7 by 737.1 which equals .01587302 which is your share of total family mineral acres.
If the family owns 320 mineral acres in a 1280 acre drill unit then your share of the minerals in that unit would be .01587302 times 320 which equals 5.07936508 net mineral acres in that particular drill unit.
To get your decimal interest, use the following formula: Mineral acres you own divided by acres in spacing/drilling unit times the royalty amount.
For example:
If you own 5.07936508 net mineral acres in a 1280 acre drill unit then just divide the 5.07936508 by 1280 which equals your share of the total drill unit which in this case is .00396825.
Take the .00396825 and multiply that times the royalty which for this example is 1/6 (.1667) and that gives the decimal interest that the oil company will apply to calculate payments based on price and sales.
I hope all this is correct but please verify. If it is not perhaps someone will let me know.
We have the mineral rights on 1/2 of a section (320 gross acres) we have been told this is a little under 45 net mineral acres. Does this make sense?
Ron, it only makes sense if a number of you each owned individually 45 acres more or less and all total added up to 320 acres. Otherwise, your family does not have 100% ownership in the 320 gross mineral acres. If your family bought the half section, the previous owner may have reserved some percentage of the mineral rights. Sometimes people sold some part of their mineral rights in hard times and you might have to search back in the chain of title 60 to 80 years to find it. I don't know exactly where your ownership is, and I'm not prying, but for a $25 subscription to the NDRIN Recorders Network you could check for leases with your legal description. It's a $25 per month subscription so if you go that route, be sure to cancel it after you find what you are looking for so it does not become a continuing monthly charge. NDRIN is fairly easy to use, I like to just input the legal description so I get everything, leases, easements, mortgages, probates, everything, that way you don't miss what you are looking for because if you search oil and gas lease, memorandum of oil and gas lease may not show up. If the landman told you to give him a call if you had any questions, I'd take him up on it and ask him, probably the easiest way for you to find out.
Ron said:
We have the mineral rights on 1/2 of a section (320 gross acres) we have been told this is a little under 45 net mineral acres. Does this make sense?
What does released from tight hole status mean?
Means that the well is off confidential status and that you could look up and find information on that well.
Ron said:
What does released from tight hole status mean?
What does bopd & bwpd mean
Bopd= barrels of oil per day, bwpd= barrels of water per day.
Ron,
It means that the well has been released from Confidential Status in North Dakota.
The attached newsletter was released today.
Ron said:
What does released from tight hole status mean?