Does anyone live near section 24 4N6W Grady Co.? Marathon has spud 5 Kem Ranch wells and I’m wondering if there is a rig up and drilling. Thanks to anyone.
One rig was still up yesterday and has been since late June… 5 new wells will be ready for fracking and completion shortly…
Thankyou Don, very much appreciated.
Hi, was presented an opportunity to invest in these 5 new wells, any thoughts on potential here? Thanks,
Mark
Just my opinion, but participating in wells is not for the novice. You and your heirs have to have deep pockets for bills that could come for decades for drilling and completion, operations and plugging. You have to carry insurance (fees), have a good attorney (fees), accountant (more fees), etc. There are some tax issues that you may or may not benefit from. Get professional advice before deciding what to do.
Those wells are almost finished. Not sure if your window of opportunity has already passed. Geologically, the wells are in a good reservoir, so the potential is there.
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Thanks so much for your reply! My window for investment is still open and I know they are almost finished drilling the last of the 5 wells so will certainly take your input into consideration.
I am curious; on 24-4N-6W, with the 5 new wells, are those spud in certain areas of this spot? With a small interest in Kem Ranch already, I’m wondering how to determine if it’s broken down so that I have interest in the new wells. Please forgive me; this is all new to me. Thank you for your time! 24-4N-6W SE/4 NW/4 NE/4
Yes, you should have gotten a ton of paperwork from the OCC about each well. If you didn’t, then that is an issue to fix since you want royalties from the new wells. (Another post if you need help)
You can also get the info online. The OCC has a wellrecords site and most of the wells’ permit forms have a map showing where the wells are planned to go. https://imaging.occ.ok.gov/OG/Well%20Records/
You royalties are based upon how the wells are spaced, your net acres and your royalty amount, plus the percentage of the perforations in your section.
They will run a wellbore survey at the end of drilling and ascertain how many feet are perforated in each section.
For example, if you own ten acres in section 24 at 1/5th royalty and the perforations are 50% of the well which is spaced at 640 acres, the equation is this: 10/640 .20.50=0.0015625 decimal.
If you already have payments on the KEM 1, then your decimal is likely the same for the new wells.
Shawn: If your minerals are anywhere in Section 24, you are a part of all of the Kem Ranch wells and will be getting paid your proportionate share of the production.
Thank you so much for your replies; I have learned so much from you! This is good news. I did get a huge amount of paperwork in the spring from Marathon; I did not know how to decipher it. I’ll call Marathon and touch base on this. Again, many thanks!
Congratulations on the new wells. If you are already getting paid on the first well, you probably don’t need to do anything. The new wells will be added to your check about six months after they are completed. You will probably get Division Orders about five months after completion. Each of them will have the splits of what percentage of perforations is in each section. Your decimal on the wells will be fairly close to what the original well was, but may differ slightly due to the exact completion data.
It would be a good idea to get all that paperwork together. Separate it out by the case number and then put in date order. Read each case from the beginning to the end. You do not have to do anything about the paperwork, but it is a great way to learn what is going on and the procedures for each well. It can be a bit overwhelming in the beginning, but consider it a useful learning moment.
Thank you for the very valuable information! I really do appreciate how amazing this community is. Thanks again, and am getting it all together. Take care!
There is no need to call Marathon. Since you received their corporation filings, you are good to go. You will receive Division Orders for the new wells 5-6 months after first production.
Thank you, Todd! I did call Marathon; the court documents for the wells had my grandfathers (deceased) name listed and then the heirs on the last pages. We had a probate and we are all with Marathon/Continental-other mineral rights. Marathon was great; they said that new titles/division order documents will be sent out after Jan. 1; paid retro and answered my questions. Thank you all for making this information available to us newbies; your patience is admired. The picture of the well made my day!
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