Question about Permit Location

My family owns the following minerals in Yoakum County: “600 acres of land, more or less, all of Section 725, Block D, Yoakum County, less and except the NW/4 of the SE/4, containing 40 acres” This has been leased for several years, but passed through some hands…most recently I believe in an asset acquisition by Ring Energy from Wishbone. There has not been any activity in years that I can see, but I do a search now and then on the RRC site to see if there were any permits filed. I noticed a permit filing by Riley Permian Operating for a new horiz well (API 501-37154) that seems to run from the top of section 712 to the very NE corner of our section. First, am I correct in understanding the description of our minerals as being the NW quarter of the SE quarter, which means this permit would fall in our area? And if so, should we expect to be contacted about this at some point? The screen shot below shows the location:

Thanks for any clarification anyone could provide. This is new to me…

Rick

Check the legend on the map for the symbols. I think the surface location of the well is the southern end of the well and the bottom hole is the northern part of the well.

Thanks, Martha! The legend shows the north end is “permitted location” and the south end is “horizontal well”.

I assume from your response that it matters which end is which? I’m not sure which location the rig would set up… I guess I was thinking anything passing through your minerals meant you had some interest in the activity. No?

Rick

And if the surface location is at the southern end of that well, and that’s where they are drilling, it’s on our minerals, right? Don’t the excluded 40 acres in the mineral description from my initial post apply to the other end of our section?

Not sure about Texas, but in OK, the pentagon means the surface location and the circle is the bottom hole on many maps. That is why I asked. It matters which end is which. You only get paid on the part of the well that has perforations. There may be an easement at the border between the abstracts where there can be no perforations. Frequently, the operator will have a surface location in one section, drill the vertical portion of the well and make the turn in that section (no perfs-no royalties), then they will drill the lateral portion of the well in the next section or abstract and that is where they will begin perforations after the required easement (prefs-royalties). From the map you showed, I was assuming the southern end is the surface location. I may be wrong. Someone from Texas can correct me.

Thanks for your insight. I appreciate it.

Rick, my wife’s family, Fillingim, owns minerals in the N/2 of Section 713. Last year Wishbone drilled a horizontal well in the NE/4 of Section 713 north across section 560. Apparently no production comes from 713, and no contact from Wishbone/Ring with the Fillingim interests. We hope they also drill S from that location across 713.