I would suspect they are the Springer shale otherwise known as the Goddard. But I would have to look at a log to tell for sure. There is a Springer sandstone as well.
Few points to consider on Oceana.
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even though it is a gas well, it may have some condensate which is a very high gravity oil which is a gas at depth and becomes a liquid as the pressure drops and the gas comes to the surface. It sells for very close to oil prices. Once it starts production, we will know if there is condensate.
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the type of gas may also be important in the pricing. If it is a wetter gas, it will have heavier gases such as ethane, pentane, butane, etc. that can be separated out. They have their own price structure. Methane is the simplest and driest form. That is what you normally use in your house unless you are one a propane system.
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Sometimes, you can have a gas well change to oil, but that is because the well sat in a gas cap of an oil field (in a sandstone or limestone reservoir) and when the gas is extracted, the oil rises-think of oil and vinegar salad dressing before you shake it up. However, in this case, don’t get your hopes up. This well is sitting in a thermally mature area, so not much, if any, oil sitting there underneath. You are also sitting in the Woodford shale which is an unconventional reservoir. A good gas well can be a very good thing. They can last for years and years.
Mark, there may be exceptions to this but what we are seeing in this area is two separate products. Natural gas and condensate, a very light product which is usually sold for around the same price as oil. Some gas is dry gas, around 1025 btu, wet gas contains NGLs (natural gas liquids) which can run 1200-1400 btu or more. Some producers separate the NGLs from the gas at the well site and sell them separately, current price around $20/bbl. Others leave the liquids in and get a premium price. We are getting about $1.50/mcf premium for 1235 btu gas. If you wanted to compare the btu value of oil and dry gas you can figure about 5800mcf per bbl of oil. At today prices the 5800mcf would be worth about $17.40 compared to around $45 for the bbl of oil. Even at todays low oil prices natural gas is a better value than oil on an energy equivalent basis.
Ed…you probably wouldn’t want to get that man you talked to in trouble and they are told by the oil companies that they will lose their jobs if they tell that information about the wells so you might want to delete your post. I know they (oil companies) do monitor this forum and other blogs. Just a suggestion.
I am a daily reader and infrequent poster. Our family’s interest is on the top of 1N 6W and if it’s ever produced, seems likely to make mostly gas including condensate. I appreciate Martha B’s explanation about condensate. I have followed this forum for over a year, but can’t figure out how gas numbers in the condensate zone translate into what to expect in revenue. I see Continental report that it’s “gas” in that zone comprises over half condensate. Is that so in the experience of you who have producing wells? So, if a well produces, say, 5,000MCF of gas, and half is condensate, how would that 2.500 MCF translate into barrel of oil ? I’ve learned so much following this and appreciate all the good exchange. Mark D
Interest on delayed payments. I know I’ve seen this answered in the past, but it’s been a while and I don’t know how far back or how to search. What is the requirement for oil companies to pay interest on delayed royalty payments?
Our well in Stephens county went into production last March. Royalty payments were accrued by Continental Resources while I addressed title issue (Grandfather’s estate probate was in Texas. I had to have probate re-processed in Oklahoma). Copy of recorded Final Order of Stephens County Court was delivered to CR on Jan.5, 2015 — CR concurred this satisfied clear title. Accrued royalty payment for March thru December was direct deposited today.
Does CR owe interest on royalty payments that accrued while title was being cleared? There was NO DELASY once title cleared. If so, how is interest requested/processed?
The court process took a seemingly long time. Yes, we’re grateful; even with reduced oil price in December. I’ve learned from following the forum. THANK YOU.
Martha - Thank you for your thoughts on the Oceana.
Came across this article:
http://fuelfix.com/blog/2015/01/28/hamm-oil-prices-could-rise-soone…
Larry,
Oklahoma Statute Title 52 Section 570.10-12 explains it. 12% from day one if no title problems. 6% is title problems. Try for the 12% since you have clear title. Check the stub. It may have INT or MISC in there and that might be the interest.
Since you already received the royalties, you just want to ask for the interest. Give them your owner number, property number and explanation. Send by certified mail. Keep a copy of everything in case you have to protest with the OCC.
Here is what I posted yesterday in Grady. You can edit out the royalty part and production part.
You might try wording something like this: Note I am not an attorney but I have used similar words to get my interest paid. Fill in the blanks.
We believe Blank Company is operating the XXX well located in xx-xx-xx. We have not received any royalty payments from the proceeds of the production from the XXX Well since production commenced and it is now past the six month deadline. The property number is XXX. Our owner number is XXX.
We demand that Blank company provide records of (i) all production from the XXX Well since production commenced and (ii) sales of the production from the XXX Well including the information required by Oklahoma’s Production Revenue Standards Act (Okla. Stat. title 52, §570. 12).
In addition, we demand that Blank Company immediately pay our royalties on the proceeds from the sales or oil and gas produced from the Blank Well since production commenced.
We reserve all rights and remedies under the law and in equity to recover our unpaid royalties, along with interest as required by the statute title 5. 570.10. Please contact me at your first convenience to arrange for payment and provisions of the requested records.
Look up Title 52 section 570, 10-12 to see the wording.
Is this the current form of attracting oil or is this new technology?
I just received a notice on what I thought was going to be the Celest in Stephens co. Section 5 02n 04w and Garvin co. Section 32 03n 04w. The notice is an order dismissing cause. I’m not clear what this means— the cause number is 201308090 and the order is 635547. At the bottom it states " this cause is dismissed without prejudice to the filing of a new application". I’m assuming they aren’t going forward with this, but I’m not sure. Anyone have an idea?
Linda,
I have been lied to since May 20, by management, subcontractors, and most people who were involved in the Oceana well. The well is on our property and we have mineral rights under it and it’s my feeling that as an owner, we have the right to know what’s going on. Hopefully, the big boys at CLR will be reading this forum.
Was a nice offer even if misunderstood, Troy. We can all use the help from time to time. Not used to someone offering for free, I guess. Thanks!
Linda, Mine was one of those leases in 34-2N-4W just recorded. Hopefully something will happen soon.
M.Barnes, THANK YOU !!
Mr. Curtis,
Do not be surprised if you get dinged by the administrators for advertising on this site by posting as you are. It is against the board rules that you agreed to when you joined. If you would like to advertise, they have space for rent.
Best
Buddy Cotten
Ed…I fully agree with you that you as surface owner and we as mineral rights owners have the right to know what’s going on. That being said the flow testers are only working for a service company that get their work from the oil companies. A friend of ours has a son that works for CR and the company told them that if they gave out any information about how the wells were doing before it is released by the company it could mean their jobs. He said they (the company) watch all the blogs and tell them that they better not see their name on there or reference as to what they say or they will be fired. Several of the flow testers that I have talked to say “I’m sorry but we’re not allowed to tell you anything”. If I ever do find some one that will give me some information I don’t give away my source because I don’t want to get them in trouble. I usually just say “I heard this or that”. If our sources see where we say who told us we’ll probably lose those sources. You can also friend people on here and tell them what you found out without telling everybody if you like.
I had trouble, too. But I went in through the Imaged Records to the Well Records option and typed in the well names instead of the location and that worked. They update on Fridays, so ……
http://imaging.occeweb.com/OG/Well%20Records/1DD2B26F.pdf Foster 1-29H
http://imaging.occeweb.com/OG/Well%20Records/1DD2B277.pdf Clarence
Jen, I think they are just cleaning up some old business. That order number leads back to an emergency order for the Condit. I found a spud report for the Celesta issued Dec 20, 2014.
Hutch, uh ha! I couldn’t figure it out! Thanks!