My Marathon Royalty for Sections 03 &10 03N 04W and Casillas 01/12 (well head is in 13) 03N 04W went to crap. I actually received zero from Marathon for March. Have been getting about 2k. And Casillas dropped from 7 to 8k down to 2.5k. What the heck happened? I know Rimrock and Marathon are feuding over leaseholds. I think Casillas received permitting to drill east. Just all very strange with oil being so high. Anyone have any news, rumors, or ideas?
It looks like the Eubank 2-10,-3WXH, 3-10, 4-10 and 5-10 new wells all came online in March 22. They frequently shut in the parent well and all wells within a mile or two while they frac the new wells to protect the existing wells. You will probably see the royalties from these new wells in about six months. Be patient.
Will the parent well Eubank 1 come back on line?
Usually they do. Occasionally, the parent well does get damaged, but the child infill wells can take up some of the slack. There is quite a bit of activity in that area, so give it a couple of months to settle out. It takes about six months to do all the title work on the new wells.
Thank you. You are always so helpful. I tell you its always a roller coaster ride. Some days its chicken and somedays its feathers. Lol.
And some days you just “wait to cross the road…” The good news is that the new wells are coming online during a very high price environment. Your first check from them will be a pleasant surprise since it will have five or six months of royalties paid at once. Then the next month will go back to “normal” monthly time frame. When the division orders come, they will be slightly different in decimal amount since every well will have slightly different perforations percent. I always change the $100 minimum limit to $25 so that down the road when royalties are low, I get more regular checks.
Thank you. Very good recommendation.
Happy Birthday Martha, keep your wits about you today, don’t be fooled. 
Thanks! Having an April Fool birthday in grade school was an adventure for sure!
i myself have an interest in the same area of section 2,3, 10 and 11 3n 4w. I understand lots of activity but can someone explain a “watermark” assignment of lease?
Please give an example or where that term is used?
we received this marathon division order stating we have 4 wells that are pooling and 1 that is watermarked, an assignment of lease. that one notes Anadarko onshore and Kerr-Mcgee onshore as assignors. trying to look this up but no luck.
Do you mean wells that are “producing”, not pooling? Without seeing the notation of watermarked assignment of lease in its full context, I’m not sure what they are saying.
If you add your section, township and range, we can help better.
I have interest in the Ralph well in Section 2, 4N, 4W. My checks went from around $3K a month to $6.00. I have been in touch with Marathon many times. This well has been shut down since December 19, 2021. They are drilling another well in the same unit, so shut it down for safety reasons. I last spoke with Marathon yesterday and they told me the main well (the Ralph) should be back up mid-May. We shall see!!
Marathon has several of my wells shut in now…since December. Very frustrating. I feel like I’m missing out on the high prices.
I feel the same way. Hopefully it just means they are drilling more wells that will benefit you and I both. I think oil prices will stay up for awhile. Hang in there!!
Jackie & Vicki: Wells are shut-in when there is an offset well that has been drilled in the same reservoir and is being frac’d. It is to protect the wellbore of the original well. When the new well is turned to production the old well is “turned back on”. I caution you that the old well very seldom comes back to the production level that it was prior to being shut-in and that is because there is now another straw in the same soda being sucked on by your friend/neighbor. That is just the way the cookie crumbles. The oil & gas business is a marathon, not a sprint.
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Hi Todd. Can you explain to me what a “unit” is? I know they are drilling in the same unit as the current well that was shut down. Thank you.
I also made a mistake on my legal. I have interest in section 2, T3N, R4W. I had originally posted T4N, but that was incorrect.