Interested in next steps regarding Camino’s regarding issuance of Division Orders, as well as, when both the Joyce and John Keeling wells will be fractured and first sales occur? Also, based upon surroundings wells ideas regarding anticipated production the first year?
It is best if you post questions like this in the state and county where the well belongs and give a location such as section, township and range or abstract. I will move it for you.
The wells are located in Oklahoma, Grady County sec 23-06N-07W. One goes north and one goes south.
John Keeling has a surface location in 23 and goes north into 14. The well has an active date of 1/18/22 which is listed on the OK Tax site. The well records site is also linked below. The well is frac’d and online.
Joyce Keeling has a surface location in 23 and goes south into 26. You can tell by the well name. It has an active date as of 1/18/22. Also frac’d and online.
The general time frame is about five months to get a division order. In this case, it may take more because there are three sections involved and hundreds of owner titles to check and verify. By law, they must pay you 180 days after first sales. I don’t fuss until they are a couple of months late. One, because the check cut date by the company may not be exactly 180 days and because I don’t mind getting 12% interest on a clear title if they are late.
https://imaging.occ.ok.gov/imaging/OGWellRecords.aspx. You can find the predicted paths of the wells here. Put 2306N07W in the location box. Look up the Form 1000 for the permit and scroll down.
https://otcportal.tax.ok.gov/gpx/gp_displayPublicPUNListSearchDownload.php
Each of these wells are about a section and a half long since they have a surface location in the middle of Section 23. Until the actual completion is posted in a couple of months, the closest well to compare with would be the Michael 0607 11-2 well in a nearby section. It is two sections long, so take that into account. API 35-051-24308. You can look it up on the OK tax site (Gross Production) listed. Type Michael 0607 in the LeaseName box. You can see the last 12 months of production on it, but not the first few months unless you pay for it. You can also look up the completion report for the Michael on the Well Records to see its completion report 1002A. Take it with a grain of salt… as that is early production before it cleans up the frac water. Look it up in 1306N07W.
In general, horizontal wells have high production in the first few years and decline rapidly-totally normal. But they can last decades at a low rate.
Talk to your CPA about planning for taxes. The first check you get will be for about six months of royalties. The next ones will be monthly. You may have to make estimated payments next year based upon royalties from this year.
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