Hi
I’ve have a producing well ( Helen Lot 4 5-154-96 API 3310501834) now owned by Continental
New Wells currently being drilled:
API 3310506333 Helen 2-8HSL
API 3310506335 Helen 3-8H1
API 3310506337 Helen 4-8H
API 3310506339 Helen 5-8H
API 3310506341 Helen 6-8H1
API 3310506371 Helen 7-8H
I’m asking if anyone can confirm which of these new wells I’ll participate. My current percentage is .00123. It looks like some of these wells are combined in 4 sections. If so would I divide my percentage in half?
Thank you
Randy
I am just sorta guessing. Sorta.
I think the combined 4 sections is so that they can drill in multiple directions without having to sweat an off lease surface location (which in my experience in ND allows the surface owner to hold you hostage). I think the wells interest will still be determined on a 1280 basis. In other words, the wells starting in the Sec 8/17 border and going north into Sec 5/8 (Helen) will all have the same ownership as the older Helen well.
And if you don’t own anything in 17/20 you will have no interest in the wells going south. Kenneth or whatever.
Besides the surface issue, it’s pretty much a wash.
If you are the surface owner, well then they did you a bit dirty.
Without YOUR legal description I’m not sure the question can be fully answered. I could look and see with a description, but the direction of the drilling matters, as does the footing of the well all and if these are NEW, they are on confidential status and the direction of the boring will not show until that is over (typically). A well could sit at the edge of your section and if not sucking oil from YOUR section, even though it sits in your section, you may not get paid. If any of the wells actually suck oil from your section (or any wells footed 4 sections over come thru your section and suck oil out), then you would get paid. So, in fact you can get paid for wells not physically in your section at all, with the 4-section drilling. All in all it’s a big subject with lots of variants.