Thanks TennisDaze very useful information.
Thanks TennisDaze, great information! I took a look at the plat and now don’t know what to do.
Yes this started in May. I’m told 6 Months is normal. Which section is yours?
Look at your lease and see the gross mineral acres in your tract. The P-12 form filed for each well lists the gross acres in each tract within the well acreage. The Shadrach well lists 13 tracts, ranging from 133.518 acres to less than 1 acre. The Fiery Furnace lists 59 tracts, with largest being 38.815 acres. The Colgate tracts are simply its list of tracts with differing ownership and not necessarily related to your legal description. You can contact Colgate land department and ask which well(s) you are in.
Hector – we received $3500 per nma about a mile SE from you and $8000 about 5 miles NW of you. Both were 3-yr leases with 25% royalty.
M Smith, I am not selling my minerals. My lease is about to expire so I needed to know what to negotiate for. After talking to Colgate Land Dept my lease has been flipped from a previous lessor. You and I are in good hands because CLD said two (2) wells are coming to our section. Thank you Jesus!
I wonder what their average time from start to actual production is? If the 6 month comment is accurate, I wonder if it is typical that we would receive payments around that time frame?
M Smith, according to Colgate the drilling rig pad will be placed on A-3260 next to your property and drill eastward.
If my lease was expiring I would ask for at least $5,000 nma and would not agree to more than 3 years.
If you ever lease your interests again, let us know and we’ll send you some ideas for provisions you will want to include. Tee Hee.
Hector, I am not should you should be considering selling right now. They will be in oil production soon within our section. The permits for horizontal wells are right in our section. You will be getting monthly checks for years to come very soon I suspect. I am not sure why you would entertain selling right now.
Don’t forget to include a Pugh Clause (or equivalent language) in your lease. This will sever the deep rights (generally 100 ft below the producing formation) for future leasing.
You should also add in a Continuous Drilling Clause or they will only drill one well to hold the entire unit by production. Might not be back for a decade.
Ron, it seems that Primexx has already permitted a long horizontal well crossing your area and into Sec 137 above yours. I can’t access details right now because the system is down. No idea how much acreage you have. Depending on that answer, I might not accept $3000 an acre. My family has interests in Sec.185, three or so miles to the NNE of you. We got more than that a year ago, without a well already permitted. But we have largish interests. Others on the board may have more current info. Best luck.
Initialing changes is not uncommon. If it was legit before, it is still legit.
Ron,
Primexx obtained a permit last month to drill a horizontal oil well through your tract. There is probably a bit more on the table than $3k/NMA. I’d shop around a bit. Depending on the amount of acreage you have, the permit on the property will likely make this property appealing to “non-op” groups as well. You might try the forum sponsors too. Best of luck.
Simply put, a Depth Severance Clause says that they only get to keep to a certain depth beyond the Primary Term. In Conventional Wells (the straight down kind) it could be to 100’ below the deepest depth drilled or to the base of a given formation. With Unconventional (Horizontal) Wells, it will be to 100’ below the deepest perforations of similar language.
Ron -
Lawrence responds to questions on The Forum and is very well respected, but I am not familiar with the companies’ being limited to only 4 Horizontal Wells in any given Section.
The required spacing of the Wells in any given Unit varies, depending upon what formation, how productive it is, and a myriad of other factors. I have seen where in some areas, for a given formation, they can have 4, 8 or even 16 Horizontal Wellbores per Unit.
The website for the Texas Railroad Commission (RRC), which regulates how many wells can be drilled in a given Field, is down for maintenance so I have not been able to pull down the Fieldwide Spacing Rules for the area you lands are locate in. I will try and do that tomorrow.
What I can tell you is that the 10H was permitted to the Hoefs T-K formation in the (Wolfcamp) Field and the Wolfbone Trend Area Field.
They’re looking at two potential formations.
4 horizontal wells at a given depth. They can place additional horizontal wells at deeper/shallower zones even within the same geologic formation. An operator on our lease plans 16 to 24 wells in the Wolfcamp A and B. They use a “wine rack” model (imagine the bottles of wine represent the horizontal wellbores).
This is evolving in the RRC based on the the Octopus horizontal well
technology developments and field testing. You mentioned the Hoef T-K
formation (that’s on the Hoef ranch north of IH-10 at exit 222, isn’t it?).
As I recall, that is a combination of the Bone Springs formation and
the Wolfcamp formation…what used to be separated in my youth
in the oilfield. In the western edge of the Permian Basin bounded by
the Pecos river, we had 17 producing formations that were distinct from one another. Now, this stacked shale play of the Delaware basin bounded on the East by the Pecos river and on the west by the Guadalupe mountains in Hudspeth county…necessitates they join several formations into a general name like WolfBone formation. It makes it confusing for an old oilfield dog like me. I’ll leave that mess
to the ‘whippersnappers’ and just talk about what I learned about the Delaware basin 40 years ago…it’s mostly still valid.
near Verhalen