Thanks Todd. I do know on my paperwork I was sent from Casillas’s lawyer that their Prairie well which starts in section 33 4N4W and goes up through section 28 said people in section 33 would get 22% of the well.
Then Marathon which spudded two wells in section 4 3N4W that go into section 33 which are called Jewel Bia and Seth Bia. Those say section 33 owners will get 34% of those wells. So I guess they already had their perforations figured out.
When they drill two wells from the same pad and they are spudded one day apart, can you explain this process? Is this two surface holes a few feet apart drilled by two separate drilling rigs or are there drilling rigs that can drill two at a time? I appreciate everybody’s help. Tom
Arkomo: The unit percentages are only guestimates until the well is drilled to total depth & perforations/completion finished. Sometimes the wellbores don’t go as far as intended, sometimes they go farther. The actual allocations aren’t figured until after a final bottom hole survey.
As for wells being spud a few feet apart, spud doesn’t always mean that a drilling rig capable of drilling to total depth is on location. Most companies are using spudder rigs to drill the well to a depth to set surface casing. Then the larger rig is brought in to finish the hole. So the drilling rig on the location will drill one well to total depth, then the rig will be skidded over to the next hole for drilling it to total depth.
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Tom–you have thr correct idea, but your method may not work. The traditional method is as follows: your royalty X your net acres / total acres in Section 33 X 22%.
If your lease royalty is 3/16ths, you own 5 net mineral acres, and Section 33 contains 640 acres, the formula would be: 3/16 X 5/640 X 22% of total well production.