Frank, there has been some fairly recent activity in the area. There is a well in 150-102-31 that had initial production 8-5-2013. It was a good if not exceptional well. It’s about 2 miles from your section 2. This is probably what the landman was referring to as activity in the area.
There is some kind of production around you within 2-3 miles in every direction but due south. I believe it’s just a matter of time.
As to stopgap, I would need to hear some context to hazard a guess with any confidence. Going way out on a limb, Zavanna who drilled the well referenced above may have needed to drill the well above to keep from losing or having to lease again the leases they had there, stop gap.
Legal ownership on our mineral rights will be signed by the courts next week. There have been leases, but no royalty payouts due to the legal status of ownership. Any idea how long the process should take to disperse royalites, and it there still action on the properties? section is 9 township 150 range 98. horizontal leg is the Rolfson 11-16NEH
Bonnie, I am sorry to say you still have only one well which has produced 146,094 barrels oil as of October. There are 7 wells just south of you which are also operated by XTO. The quality of your well and the oldest one south of you are about on par. The new wells look at least to be decent although it’s hard to tell when they are fairly new and some already have pumps and some do not. I will go out on a limb and say they will be profitable wells barring mechanical failure. Hopefully XTO will drill you at least a few more wells in the next couple of years.
Bonnie, It has been my experience that once you get the legal deeds to an oil company it can take anywhere from one to six months to get them to pay up. Even then there are usually issues. XTO was the most difficult for me to deal with. All the companies I have dealt with cut checks once per month, between the 20th and 30th.
What is the code DRL used for after a well has come off “confidential”. 25065 and 25066 show production since October.
Also, at what point in time after all wells have been drilled does the IA come off the well that was shut down for drilling of other wells.
The area is 150T 99R Section 4. I’m hoping someone can shed some light on this subject. I have an e-mail in to XTO, which they say will be answered in 3 business days. Good Luck with that. Supposedly an Engineer was supposed to contact me. Hasn’t happened yet. I try to allow that they have other things to do than answer questions, BUT!
I was hoping you were out there Mr Kennedy. What confused me is the fact that there was production as well as drilling. I thought it had to be one or the other. Yes, I have rights in all of those wells also. As well as the one’s next door in sect 3 and up in 34 of 151T. Where I think something must be going on. Thank you for your help. Deloris
Deloris, DRL means drilling, not just drilling but it is also used to denore waiting for fracking or repairs.
The IA comes off the idled well when the operator tells the state to lift it. I have seen wells that had the IA designation produce for a few months before the IA designation was removed.
The LOOMER 21X-4A is still on DRL status although it has produced 12,306 bbl oil from early October through November.
Loomer 21X-4E is still on DRL status but has produced 22,882 bbl oil from early October theough November.
There are 4 more wells spud from August to September of last year, I believe at least two and possibly all four of these well will be yours. I think things will be looking up within 6 months and getting better as the year goes on. Hang in there Deloris.
That should have been denote. Lol.
What’s in a name, indeed. Do you know if they send royalty checks when it is in DRL status? …I know, don’t quit your day job!!
I was thinking it was 3 months for some reason. They pay pretty good interest…how bad could that be. Maybe I’ll just let them keep it for a while. I’m sure they avoid that situation whenever possible.
Deloris, I think Shakespear said it best when he said “What;s in a name”? They can call a well a producing well DRL and that would not change the fact that it is a producing well. Your well that is IA would bother me too as they only need to have it idle when they are about to frack and it has not produced in 8 to possibly 10 months. I don’t think they will have any trouble getting it started again though because the field pressure is still great.
My sentiments exactly!! Have you ever heard if any of the companies allow investing royalty payments back to the company for stock. I did that as an employee of the telephone co. Just reinvest the dividends paid right back in to acquire more stock. Just a thought. Might not be the same concept.
Deloris, the law is 150 days after first sales or they owe interest if you have marketable title. I have experienced immediate payment on new wells in a spacing that had existing production, after all, they already know who owns what and what good reason could they have to not pay immediately?
Deloris, 1.5% a month, 18% per year interest is one of the best returns I have heard of in awhile. I remember a fellow from Oklahoma commenting that he hopes they do not pay on time because he can’t find a better investment than the 12% that Oklahoms pays.
Deloris, most operators in the Bakken are companies with publicly traded stock, you can buy as much as you want. I’m not an investment counselor but I would rather invest in a pipeline company after finding one that suited my fancy. I have heard it said that ND needs an astonishing amount of pipeline. Rail is experiencing alot of growth in oil transport but I would not want to invest in Rail because of their overall performance.
Buying out someones mineral acres could be another good investment to hold if the purchase price is recovered in 5 years or less from production and new wells are icing on the cake but you need to do alot of research and become knowedgeable before considering such purchases.
I watched a few companies for a while but decided I knew just enough to be dangerous. The pipeline company is a good Idea. Something for my grandkids. My husband worked for one years ago, Can’t imagine they aren’t up there freezing their toes someplace, if they are still in business. I’m out of my element, but enjoying the side bar. Here’s to Spring!
I am in need of some assistance regarding well interest. We have recently discovered that there are 6 wells that we have interest in operated by Kodiak
I do not know much about this yet but I am learning.
One of the wells Lassey 152-103-22-15-1h which has produced 127,391 barrels since 8 -03 - 2012 is listed and Kodiak says we have 0.00021217 interest. Doesn’t seem like much to me but I wonder if anyone can help me with what these numbers mean in terms of revenue?? We have yet to see any cash from any of this. Thanks
Mr. Bennett, are you leased?
On a lease I would not consider it a great deal of money, especially for that single well in the spacing, but there could be 10 more wells drilled in that spacing and that would make a difference. If I were not leased I would be non-consent in that spacing so I would receive 16% royalty and have eventual ownership in proportion to my acreage in the well and receive 100% less cost of production. which could mean 4-5 times the money from each well.
Not knowing the specifics of whether you are leased or not, roughly I think you will receive between $50 and $100 per month from this well and possibly the same from other wells drilled in that spacing in the future.
Mr Kennedy,
Thanks for the reply… No lease has been signed on this particular well as well as 5 others that Kodiak has sent us information on. We were unaware of these 6 wells until Palladin resources sent a lease out on another well Erickson 152-103-23-14-1h which was signed at 19% last Sept and we have not been given a quote on interest in that well. No other papers have been signed and we have not had any further correspondence from Kodiak or Palladin since Nov. Looks like a trip to Watford City is necessary to find out what the county records show. All new stuff for me.
Thanks
Lori, depending on well cost and what the oil actually sold for Mr. Bennet might only be only 3/4 of the way there, but other considerations like tax deductions for tangible and intangible drilling and completion costs and the 15% depletion allowance would play a factor. It still could be a great deal.