These wells are spaced at 640 for both oil and gas since they are horizontal wells that cover the whole section and both products may be in the flowing stream. You may have seen different spacings for vertical wells that would be predominantly oil or gas depending upon depth or reservoir.
I thought that might be it. Thanks for confirming.
If anybody is interested, I was told that the title opinions have been mailed to Trinity’s main office; which means Division Orders should be mailed pretty soon. Maybe real soon, since they’re 2 to 3 months behind. I believe the statement applied to both the Frances and the Clara wells, so if you have Interest in section 1, 12, 13, or 24, watch your mailbox.
Does this mean our 6 month back pay along with monthly royalties will be starting soon??
Not sure about soon, but it isn’t going to happen until after the Division Orders process. So this is a step that had to be finished.
They are already 2 plus months behind. Youd think they would want to avoid the 12% interest being charged and get people paid…
Yes, except that the Division Order process is what determines who gets paid, and how much. So no matter how much they might like to go ahead with it (and we would like for them to go ahead with it), some things must be done in sequence.
That said, I do feel that they will hurry it up as much as it can be hurried.
In the meantime, you might want to consult your accountant about whether you need to adjust your tax withholding for the year. When wells all come online like that at once, it can impact your tax bracket. When the first check arrives, it will have six months or so of production, so will be the largest check you will ever get. Checks after that will be for one month at a time and much lower. That early check is also at the highest production levels for the wells, so will naturally decline after that. It would be wise to plan ahead because the IRS will just see this year’s income and want to tax on it for your possible quarterly payments for next year (even though we know that it will be less).
One strategy that we use is to put the royalties from the first year in a separate account that pays interest and is fairly liquid but secure. (Helps resist the urge to spend it all at the beginning). We reserve half to pay the first year taxes-both federal and state and have some left over to pay the next year quarterlies. We use 10% to pay our tithe or charity (in gratitude to the Lord who provided it in the first place). Then we have fun with 10%! We save back that last 30% as a cushion, spend it on something we really need to do or invest it until we see if we need it for extra quarterly payments for that second tax year. Usually, we get a refund back and by year three, we have a better idea of what to expect. Royalties are still coming in, so we put them in that account for the first couple of years to build up a safety net. Your accountant may have alternate advice based upon your particular situation, but planning ahead can save you a bunch of tax heartache!
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M Barnes, WOW…what analysis and specificity. I have similar interest for the 4 new “increased density” wells for DORA (well name). Hughes Co. OK. Trinity is the Operator, and I am looking forward to receiving my DO (Division Order) for a few extra Royalty bucks ($$) for my retirement survival…Leta C. in MONTANA. P.S. Thank you M Barnes for all you do for Forum novices, like myself.
Martha,
While patiently (or not) waiting for Division Orders, I’ve been looking aroung at OTC for volumes, and at OCC for documents. I believe I have found Completion Reports, or something a whole lot lile it. I found imaged documents that include the well surveys, and tables of MD & TVD for the perfs, sections lines, etc. And soemwhere in there was a full Section 12 list of wells & perf ratios. That should mean that the DOs - whenever they arrive - won’t have any surprises. Or shouldn’t have; I guess if there are surprises it will mean that Trinity got something wrong.
Still I have a couple of other questions for which I haven’t found anything pertinent. So I would like to ask you, since you not only know how to tell what’s what on all these sites, you probably have access to data other places as well. And if you can’t answer, I’m certainly not any worse off.
One question is, when Well volumes get added to the OTC site, do Oil vols lag the Gas vols by more than a month? I noticed December gas volumes as of late last week, but I have no oil volumes at all after October.
Speaking of no volumes, the Frances-3 well on OTC has gas volumes for June - August, and oil from June - September, and then nothing. The gas volumes were somewhat lower than the other Frances wells, but not by a great deal. And the idea that the well went from 50 MMCF to nothing just like that, seems odd, especially since all the others were still doing well. Unless they just missed the Woodford target (which doesn’t seem likely from the surveys) I can’t figure it out. Any ideas?
The oil did drop quite a bit from Aug to Sep (on well 3) - and the others had pretty significant drops from Sep to Oct, so I can’t help wondering if the oil just played out that fast. I don’t imagine that is the case, but I kind of feel like I should see someing in the oil for November one day soon.
Any insights would be appreciated, as always. I think I may owe you a lunch next time I’m in Houston. 
In general, if they are frac’ing another well within a mile, they will shut in the wells nearby to protect them. Not sure if that was the reason. If these wells are generally gas wells, then they will only pick up the oil volumes when there is enough in the tank to justify a trip.
Usually oil volumes post first and gas volumes lag at least on oil wells.
OK, so the oil may not have dropped completely out, but they could be letting tanks fill. Makes sense. And explains why it looked like oil was lagging the gas.
Shutting in with nearby fraccing makes sense, too, but I wouldn’t have thought it would go on for 4 months.
I did see a ‘Protest’ document in the imaged documents, which announced an attorney as representing Antioch Operating LLC. I wonder if the protest could have halted production for a bit? If you’re interested, it was 201704254.
Well 3 just doesn’t look as good as the others at this point. Time will tell.
M_Barnes. . I was offered today a buy price of around 150k for 33 acres in sec 12-7N-10E. 4500 or so an acre. Lawyer said 7500 an acre was more reasonable… any idea on that. 250k is alot better than 145k ya know
If your attorney has good knowledge of the area, then I would listen to the professional. My other question would be why would you want to sell with ten horizontal wells coming on line? Is the offer price equal to or greater than the value of those wells?
That I do not know. I was asking if it was going to equal the same amount. Or maybe more just gathering it all at once. It just seemed like a good offer. Really I have no idea what the wells are making. I just know I am not being paid on anything right now. 0 dollars is hurting me lol. Thnk you much fir the reply
Have you gotten your division order yet from the wells? Read the stream of comments above and you can watch the production on the tax site. They are selling the product. You are about to get a pretty big check if your title is clear.
Martha,
Could you please, if you have a few minutes, check these on OCC scanned docs:
Cause 201704253 - Order 692449
Cause 201704254 - Order 691218
These appear to be recent requests for permission to drill a few more wells in Sections 1 and 12, 07N 10E. I am wondering if this is just a late addition to what they’d already asked for relief on, or if you think they might drill Frances 6, 7 & 8 one day soon.
Thanks.
I think both of these are designed more to post the final completions and percentage numbers for the first Frances 1-5 wells. Check the exhibits.
However, from the posted numbers, looks like they might be able to squeeze a bit more out of the EUR. Depends upon how these drain.
I see what you’re saying. I had seen those Exhibits before, but I felt like the recent Orders were singling out that “Amount Remaining.” They talk like those amounts will not be recovered if they don’t get the 3 new wells.
Either way, I am happy enough with the Clara DO I got this week, and with what I expect from these five Frances wells. I was just looking to see what you thought. Thanks.