Two siblings and I have mineral rights just north of Williston, ND at the above coordinates. Has anyone heard of any recent interest in that area? We have an attorney who has advised us how we should handle our mineral rights; just wondering with the state "booming", if it is just a matter of time when we hear from a drilling company.
I visit the NDIC home page daily; have a hard time navigating the map they have there. We are also wondering what the following mean: Permits given, "tight hole" status, release from "tight Hole" status, confidential wells. One more question: Do oil companies have web sites where they list the areas of the Baaken they are currently exploring?
Thanks for any insight; we are unfortunately, quite naive.
Looking at the GIS mapping system for that area, two things are noted, first there are wells that have been drilled in all directions around your area and second, it appears a horizontal leg runs into Section 29. I'm not sure the operators name but the well number is 19167. You could contact the NDIC for more info on this. I find it hard to believe that you have not been contacted by a company under these circumstances. If you are for sure that this is the correct description, you need to do some investigation on the matter such as County Clerks records, etc.
Sections 29 and 32 make up a 1280 acre drill spacing drill spacing, and there is a well drilled in sec 32 with the leg going into sec 29 as Charles says. All those with minerals in the spacing should share in the well. The initial production for the well is dated 2-13-2011 and was 517 bbl oil in the first 24 hours. Total production through the month of September is 34,127 barrels. The well isn't producing alot of gas and all of it is being flared (burned) off. The well seems to have declined to slightly less than 100 barrels a day. As Charles says it's amazing that you haven't been contacted yet, since I recall from our previous discussion, you told me you have accurate, up to date information on file. You still have time, years probably, for the oil co to try to browbeat you into a lease, and threatening to impose a risk penalty, which they can do up until the day the well pays for itself or even after, if you don't fight it. Good luck, it appears you have a well.
Our attorney only outlined what his advice was for us and that is to be a non-participant; he did not advise us anything else. We have had a landsman try and get us to sign a lease, last being one month ago. Why haven't we been contacted regarding this drill spacing unit, which would obviously include us; should we be contacting the oil company ourselves? What would your advice be; we are complete novices in this matter.
Jim Ohman and Pat Maloney
r w kennedy said:
Sections 29 and 32 make up a 1280 acre drill spacing drill spacing, and there is a well drilled in sec 32 with the leg going into sec 29 as Charles says. All those with minerals in the spacing should share in the well. The initial production for the well is dated 2-13-2011 and was 517 bbl oil in the first 24 hours. Total production through the month of September is 34,127 barrels. The well isn't producing alot of gas and all of it is being flared (burned) off. The well seems to have declined to slightly less than 100 barrels a day. As Charles says it's amazing that you haven't been contacted yet, since I recall from our previous discussion, you told me you have accurate, up to date information on file. You still have time, years probably, for the oil co to try to browbeat you into a lease, and threatening to impose a risk penalty, which they can do up until the day the well pays for itself or even after, if you don't fight it. Good luck, it appears you have a well.
Jim, Pat, If they have tried to lease you, and or offered you the opportunity to pay for your part of the well they can force pool you and impose a 50% risk penalty. That would not be the end of the world. You would receive a 16% royalty from barrel one, until the rest of the production attributable to your interest pays for your part of the well and penalty at which point you receive 100% less cost of production and taxes. At that point administrative headaches might begin. No need to panic though. I think worst case you could sell your interest in the well and retain your minerals and a royalty, if it wasn't paying enough to be worth the hassle. I hope the information I gave above is helpful. I forgot to mention that Oasis Petroleum is your operator, in case you didn't know. Congratulations on your well.
This was fabulous information! As naive as we are, we did not even realize the map showed the sectioning in 32 and 29 was active. How did you know about barrels per day and everything for this well? We have been trying to figure this all out since we learned we have mineral rights. Are you a landsman? Anyway, thank you so much; we have not been contacted by Oasis Petroleum and are wondering why this is. Probably because we have decided not to lease so we are now pooled as non-participants; but thought ALL mineral holders had to be notified once a well was drilled so we can check the non-participating box. We do know that we will get revenue once the company has recovered 150%, IF it is a good well I imagine. How will we know what this well cost the company and when they have recovered their costs? Thank you for your information.
Pat Maloney, Jim and Jon Ohman
r w kennedy said:
Jim, Pat, If they have tried to lease you, and or offered you the opportunity to pay for your part of the well they can force pool you and impose a 50% risk penalty. That would not be the end of the world. You would receive a 16% royalty from barrel one, until the rest of the production attributable to your interest pays for your part of the well and penalty at which point you receive 100% less cost of production and taxes. At that point administrative headaches might begin. No need to panic though. I think worst case you could sell your interest in the well and retain your minerals and a royalty, if it wasn't paying enough to be worth the hassle. I hope the information I gave above is helpful. I forgot to mention that Oasis Petroleum is your operator, in case you didn't know. Congratulations on your well.
Pat, I have the basic NDIC Oil and Gas Division subscription to look after my own property in ND. I can look at the GIS server map (for free) and input the coordinates and see if there is a well or the leg of a well in a section. I can then input the coordinates in a well search of those sections and look at the production (pay service) and the well files, this is a $50 per year subscription. I'm just a mineral owner, like you. I am pleased whenever I can provide some information to a fellow mineral owner. Information is what we need most to make the best decision we can regarding our interests. Glad I could help. If you need an update in the future, just let me know. BTW Pat, they owe you money right now, either the weighted average of what everyone else leased for or 16%, they pay for the well and penalty out of the other 84%.
Update, I was hoping Nov. production would be available also and I will check back in a few days, but October production was 2,585 bbl for 31 days and brings the total to 36,712 bbl through Oct. I hope you had a joyous Christmas and happy new year.