We have an operator who started drilling a well in our section but ran a horizontal to another section where we don't have rights.
Why don't we receive some royalty since the well was first started in a section that we do have mineral rights?
Thanks
They do it all the time with horiz. wells . The surface location in one section and the horiz. part of the well under another section . The horiz. part is where the production comes from.
Shale reservoirs span many sections and horizontal drilling allows companies to drill out long distances using only a few wells to drain these huge areas. The Oklahoma 2011 Shale Reservoir and Development Act "allows drilling of horizontal wells in shale reservoirs across existing unit boundaries, with the costs, production and proceeds allocated to each of the affected units." Below are some presentations designed to help mineral owners understand the new horizontal drilling and spacing units and horizontal pad drilling.
http://digitalprairie.ok.gov/cdm/ref/collection/stgovpub/id/25059
BTW, typically they will get around to drilling from the same oversized pad into both sections (or even more sections.) Just saw this on some property in Garfield county just north of the county line where a charity was getting a few thousand dollars from an old vertical well (80 acre spacing) then suddenly got a big check for a horizontal well that originated just south of the section line (640 acre spacing) and there were already 3 wells on that pad. The first well was a vertical "dry hole" that was then used as disposal or monitoring well for the 3 producers (2 in one section, 1 in the section north)
Appreciate all of the excellent responses..thank you.
FYI..it seems that Sundance Energy royalty department out of Denver is non existant since no one wants to respond to the status of a Noble county well we have where checks are few and far between when initial production figures were in excess of 150 bopd.
Is it possible to find out current production on this well?
The legals are Noble Sec 30..20N..2W...many thanks!
I am not sure what is going on there. One shows no production and one shows it plugged.
https://www4.oktax.onenet.net/GrossProduction/PublicSearchPUNbyLegal.php
Click search by legal then put in 30-20n-02e and hit search.
Ron,
saw that on this well and am still confused.It was plugged before it was drilled again but it isn't showing production figures,is there another place to look?
Linda, 1002 A Completion Report notes "The 4/1/2 liner is not cemented". http://imaging.occeweb.com/OG/Well%20Records/1DD19E37.pdf Using a casing string liner is more economical, but unless there is some new way to avoid cementing I believe it should be cemented before production tubing installed. You could try calling the OCC 405-521-2613 and ask them what they think.
Thanks Martha,I called the OCC who couldn't answer my questions but did give me a contact number at Sundance...Might help but I am not optimistic.
Linda, Without all the well reports and logs it is hard to know what the problem is. They ran open-hole logging, but they could have come behind it and run a cased-hole logging that would have helped determine whether to recomplete or plug the well. Maybe you could ask if they have cased-hole logs that determined the need to plug the well. Good Luck.
check your county laws, horizontal drilling or forced pooling is not legal in all states
They are in Oklahoma Babette..Sundance finally contacted me and they have a problem with the well and they promised to get back with me with an up to date status.
Linda, I've been in your situation and learned to document all phone conversations (date & time) and to follow up with email confirmations.