I haven’t seen any postings about this company, so I was wondering if anybody had any experience. They have drilled (and may still be drilling) a horizontal well at Section 22, 03N 03W in Garvin County under a sub-contracting or leasing arrangement with Newfield (I think). The only thing posted for the Adams 1-22X well with OTC is from May 1, 2018 and I got one check at the beginning of December. Production has been disrupted in the vertical wells operated by Newfield, so it would be nice to know what is going on. They haven’t returned my call and nothing yet in the mail this month. Do they have a track record, or does somebody know anybody there?
There are two horizontal wells permitted for that section. Katy #1-22H which was supposed to spud from a surface location in 16, goes through 21 and 22. Don’t see a spud for that one. Adams 1-22X15H which has a surface location in 22 and goes north into 15. I only see the one month listed on the OTC with production from May for the Adams. They are usually behind by about four or more months.
The first check is usually for six months of production so can be larger than the next one which is only for one month. Check your division order and see if it had a minimum of $100. It is common to have that. If you have a small acreage and the well is not producing much, then it can take several months to build up enough for them to cut a check. I usually change mine to $25 to keep watch on lower producing wells. (The May numbers were not stellar.)
The OCC does not list “Red Rocks Production” as one of the licensed operators. Do you mean Red Rocks Oil and Gas Production?
There are multiple companies with “Red Rock” in their name.
Thanks for that tip. Yes. Red Rocks Oil and Gas Production. I couldn’t find a website but there is a listing and a phone number.
Is Section 16 included in any production from the Katie well?
No, the surface location is in the farthest SE corner of 16 and there are no perforations in 16 hence no royalties. Not sure it actually drilled.
Newby here. We received a pooling relief that is asking us to make elections. This is something our father either inherited or got involved with earlier in life. Hoping someone can help wtih a couple of questions.
- Can anyone summarize what exactly what the pooling election is about?
- The elections seem to range in some sort. Is there in inverse relationship to a final potential payout?
- Any idea what stage the exporation is in or how we find out? Garvin County Sec 34 4N 4W
The pooling options are to either participate (which most mineral owners do not have the expertise/resources to do), or to receive some combination of bonus money and royalty. The lower the royalty fraction the higher the bonus payment. But, the bonus is a one-time payment, and royalty payments will last as long as there is production from the unit.
Most professional mineral owners choose the pooling option with the highest royalty fraction and, therefore, the lowest bonus. The downside of this approach is that if the well is a “dry hole”–plugged and abandoned without any production-- you get less $$ with that choice. But, it appears there are very few horizontal wells that are dry holes.
Frank answered the pooling question nicely. Pooling is the last stage before drilling is likely to begin. In Oklahoma, it is a way to make sure that all “known” mineral owners are assigned a royalty/bonus pair so that the business of drilling can commence.
The operators must have the proper spacing for the reservoir they wish to develop based upon geologic and engineering presentations, they must have permission to drill the well and the location of the well approved. You can follow those items at the OCC OAP site. You will also get them by mail.
http://imaging.occeweb.com/imaging/OAP.aspx
Once the permit is issued, you will find it on the OCC Well Records site. You may have to look in a nearby section as they file them by surface location. The permit is 1000, spud in 1001A, completion, 1002A, etc.