Land broker claims that a 20 acre parcel (S/2 SE NW) is HBP so cannot make offer . I am not clear as to what minerals are tied up by the producing well (Jones 1-11, directional well with BHL of 1702 fnl x 1276 fwl which is W/2 NW/4). The spacing order details for the Jones from the OGC site are as follows:
4/22/2015 - G75 - (80) N2 11-5N-2W LD NLT 330’ FB (1976)
VAC 20143 HNTN, OTHER N2
VAC OTHER
EXT 124101 DEESS, HNTN, VIOL, OTHER
The operator wants to drill a Woodford HZ and the existing well is a Bromide producer.
Question: What does the 80 acre unit cover? OGC site says its a RECTANGLE at least 330’ from a boundary. The order seems to designate the N/2 of the 1/4 section as the unit.
Any insight here as this is getting a bit complex?
Looks like the spacing for the Bromide & Hunton for the N/2 of Section 11 is a lay down 80 acre unit.
So the N/2 of NW/4 & S/2 NW/4 are 2 different units. The Jones #1-11 well covers the S/2 SW/4.
So the minerals in the S/2 SE/4 NW/4 are HBP by the Jones well. It had last reported production in
January 2021.
Thank you Todd, that explanation makes sense. So the minerals are HBP as I was told.
What about the revenue of the proposed Woodford well? Are we boxed out and the existing leaseholder will capture that revenue, or do the terms of the pooling order put us back in the picture?
As long as your minerals are in the section where the horizontal well penetrates the zone to be produced, you will receive revenue based on the number of acres you own in the new horizontal unit and the royalty on your old lease. If the horizontal is also a multi unit one, your interest is again affected by the percentage of perforations in the horizontal wellbore pertaining to your section vs the entire unit.