Lynn Lansford…that company that is enquiring is likely getting pooled and does not like the pooling terms, so they are fishing to find out what the highest lease rate paid in the area is. No harm in sharing that information I dint think, and might help a fellow mineral owner. In todays world, the smaller oil companies are often on the same side of the fight as the mineral owners.
Thanks, Ed!
Question: Does fracking and production happen simultaneously or is fracking completed first and then production occurs?
Oil & Gas Lease Proposal fr. Recon Resources,LLC : Stephens County Sec 26 2S 4W
Received a lease proposal fr. Recon Resources w/a $2,000 per nma bonus. Has anybody received similar lease offers from Recon?
I have never heard of Recon but I do plan on researching. Has anybody heard of Recon ?
Debbie: Haven’t heard of recon, but there are lots of shops set up now by hedge funds or investment money that are leasing for the purpose of investing in working interests in the wells. They basically follow the big horizontal operations and try to get pieces of the wells. They are generally good for the mineral owners because they are often more generous on lease language, and they have been driving up the bonus amounts. Their financial health does not affect the mineral owner, paying the lease is an obligation of the operator and purchaser. What kind of royalty went with that $2,000 bonus?
Diane: fracking comes before production. First you drill the hole called the wellbore. Then you frack it, which happens in stages. each individual frac has a gun that fires explosive charges a few inches into the formation around the welfare. Then high pressure high volume water/sand mixture is pumped in and the high pressure causes the fissures in the rock to split open and radiate away from the wellbore…the sand in the mixture stays in the cracks to prop them open (it is called propant) and allow liquids to flow more easily. Typically the fracks radiate out about 120 feet from the wellbore. On these long horizontal wells, they may have 20 or 30 individual francs at regular intervals. After the fracking is all done, they begin unloading the frack water form the well. They try to recover as much as they can (I am guessing about 60-70%) It is not until they get around 40-50% of the franc recovered that they begin getting an idea of how the well is producing. That is the kindergarden version. The engineering behind this stuff is extremely sophisticated and complex.
Thank you Bob for the kindergarten version of the drilling/ process. Just what fits in my learning curve!
Bob: Recon Resources proposal is $2,000 per nma w/a (24.00% ) royalty, which is close to the 1/4 royalty is would like to receive. Their cover letter had 22.00% royalty and I called, spoke w/ John Houlik, and asked for 1/4 royalty and he said the highest they can do is 24.00%. This would be great because I have 40 nma. I will soon find out how generous they are w/ lease language when I submit my Exhibit. I’ll keep you posted. Bob, your reply is greatly appreciated. Have a wonderful day!
Michael, on the OCC Well Search, the Poteet 4-17-20XH is listed AC, but I don’t find a completion report.
Royce, I sent you a friend request.
Got it! Thanks Michael. I’ve been out all day.
Thanks, Linda. If that rig is indeed the Hays 1H-5XX, which I feel sure it is, it will probably be there a LONG time. SHL is on the very north edge of 20. I’ve been meaning to drive out that way and take a look, I just haven’t accomplished it yet. Busy time of year I guess. Appreciate your updates. Hope you are feeling better every day!
A quick highway only tour of the diggings today we saw the four Honeycutt rigs on the south side of highway 29 and the one on the north side of the highway. All drilling away! There was a new location being built on the north edge of section 22 (but on the south side of highway 29)… The Vanarkel was getting some oil hauled off with a long tank truck. I believe there were still four Kelly rigs still up. There was also a large crane which we could see about a mile west of highway 76 and west of the ranch house that CR is supposed to have bought some time back but haven’t really done anything with so far. That’s about all we saw except while still in 2n3w in Garvin County we saw what appeared to be either a small drilling rig or a large work over rig (hubby saw he figured it was a work over rig completing a well on the south side of the highway 29). Also, Vicki, the drilling rig was still up which sits just down the hill from the Studdard well. I believe that one is in section 17, right?
Thanks Linda for the update.
The crane I spoke of in the last post we felt like might have been there to help set up a new drilling rig. We’re just guessing but think in might have been around Section 7, 2n4w (just guessing about that location).
Correction on last post “should be hubby said, not saw he figured”. lol signed: Ms. Type-O
Thanks Vicki, not feeling better though. Trying to get in for another epidural and doc. wants another MRI (at the moment can’t stand to lay on my back long enough to get the MRI. The price of oil being around $66.00 a barrel and gas at $3. something hasn’t helped either. Forgot to tell you they were flaring the gas on the Jerrod yesterday. It was a pretty big flare and that was supposed to be about 83 to 85 percent oil so you wouldn’t think they need to flare it. Might rather flare it than sell it at those prices, reckon? 
Michael, I’m having trouble with connecting on the friend request.
Drove out east today to look things over. In 4, 2N,4W Newfield has finished drilling 4 Mashburn wells and still working on the fifth one. They have 6 tanks set on each of the 4 locations. Then drove by Oceana 17, 1N, 5W and there were about 20 or so Halliburton trucks on site. It all looked promising, just need to get the price back up!
Told hubby to try to find out if they had started fracking on any of the Poteet wells yet even before the last one is completed drilling. The guy he asked that works in that area a lot said they have started fracking on some wells in that area but he didn’t know the names of them so he didn’t know if they were Poteets or not. He just knew they were down in that area. I really don’t know of any others it might be unless it was the Mashburns. Heard that the Mashburn family have a lawsuit started against Newfield for drilling those wells in their hay fields without agreeing on price and paying them for the location. I believe they paid them $25,000 for the first location but it was just an old hard clay field and they wanted more for the good hay fields and NF said no. NF told them that they couldn’t stop them from drilling and I think that’s probably right but they can sure deal them some misery and expense on both sides. They drilled anyway even though it wasn’t settled so don’t know what’ll happen there.
Roads down there are really muddy right now but may be able to talk hubby into taking his truck down for a tour. Wish I had kept my old Lincoln to tour the diggings rather than trading it in because with that many miles on it (about 227,000) they didn’t give us much for it even though it was still a beautiful car. And it sure did make a good diggings touring car.