I got a notice of hearing in section 3-15N-24W and 34-16N-24W. I also heard about a horizontal well in Section 34-16N-24W, but not sure what it means. I didn’t really pay much attention to all the filings, but getting three different offers to buy my royalties in two days in the above two sections got my attention. Can someone explain what is going on in layman terms. I currently get a royalty check from Unbridled Resources, LLC in section 3-15N-24W. Thanks John E.
Several steps are required in order to drill wells. The cases set these out. Put the mailings in numerical order and then read them by date. Spacing must be determined for the reservoir of interest. A well case must be ordered. In this case a two section horizontal well with 3 & 34. One of the exhibits usually has a map that sets shows where it will be drilled. Increased well density case to allow more than one well (that is why you are getting the offers). Permission to drill the well, allocation of rate, location exception, etc. All are normal. There is a Cherokee play developing in that area. That is also why you are getting offers.
I understand most of what you said, and it appears to me that Crawley Petroleum is the one proposing or drilling the well. It also seems that Mewbourne oil and Unbridled Resources is challenging something Crawley has petition the court to do in its filing. I guess they are all jockeying to get what they think is their fair share. You mentioned a Cherokee play developing in the area, could you explain what that is.
I need to straighten up an error I made last night. I get a royalty check from Unbridled Resource in S 33, T16 N, R24W, not in S 3, T15N, R24W. I also get a check from Presidio Petrole, for royalties in S34, T16N, R24W.
The word “play” is used in the business as the ongoing development of a geological formation, in this case the Cherokee formation, over a wide ranging area. Only time will tell if the Cherokee will be profitable to drill & produce in your area, but my experience tells me it probably will be but to what extent won’t be known until after the wells are drilled.
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