any insight for prospects/longevity of this well?
is pooled interest of seven common? does that lower income by divider of 7?
lease was made Dec 2009. should mineral owners expect any bonuses from production volume upon initial drilling and release from confidential list?
having difficulty with Stark county processing any transfers of ownership without attorney action - seems bizarre!! and Whiting will not share any info until county updates title even though they received significant unfaltering proof of rightful owner.
thanks for any input.
I know the feeling. Have been blown off by the County people. Their excuse was that since they have gone to "computers" they are unable to send necessary paperwork. So see a local Attorney. I replied that since I have a computer, send me the necessary documents via PDF or whatever. Again, see a local Attorney. I wonder if the locals have any idea that the County officials are in "bed with the..." Then again, they are probably related.
William Priest
Ms. DeBell, your share of proceeds from wells would be determined by the size of the spacing, the amount of net mineral acres you contribute and your royalty percentage, the number of those who contribute won't have anything to do with what you receive. I think you can search and find explanations of how to determine your percentage of production. If you use one of the royalty calculators, most do not give the field price of the oil or include production tax of 11.5% in ND. You will also have to pay ND state income tax no matter where you live.
Ms. DeBell, I just looked at the production surrounding you and it is very good to excellent. One well close to you produced 155k barrels in about a year and another produced almost 210k barrels in about a year. This is great production. It will decline quite a bit and and you will have to wait and see where it stabilizes. I'd much rather have a has been well than a never was well.
Hi Mr. Kennedy. The GIS server link from ND Oil and Gas has been down for quite some time, I was wondering if I could have your opinion on whether or not section 30 will benefit from the 1280-spacing rule from confidential wells being started in section 29. If so, will it be the same royalty percentage as the TALKINGTON income? If not, what section is the one which 30 would benefit from? Also, since there are 3 producing wells and another being built on 30-140N-99, what is the expectation on the lease renewal amount? Should it be a multiple of the previous lease when there were no wells on it? I have not had the privilege of seeing a drilling bonus yet on leases that are transitioning to the next generation of family members. When does it actually come? At the end of the confidential well stage when they pay the accumulated income after going public? Is there a standard amount? Unfortunately, 60 years of my grandparents' meticulous records were not passed to us so I do not know what to expect. thank you for your expertise.
r w kennedy said:
Ms. DeBell, I just looked at the production surrounding you and it is very good to excellent. One well close to you produced 155k barrels in about a year and another produced almost 210k barrels in about a year. This is great production. It will decline quite a bit and and you will have to wait and see where it stabilizes. I'd much rather have a has been well than a never was well.
Ms. DeBell, there are 3 wells in your spacing with a cumulative production of 352,000 barrels oil. Your spacing is North South oriented and includes sections 30 and 31 so you will not benefit from wells drilled in the sections 29-32 spacing unless you have minerals in those sections.
If, as you mentioned elsewhere that there was a lease in May 2012 and the estate has not been settled, then the estate will get the bonus or probably already has because if I were the oil company I would want to seal the deal on a lease so favorable to me. I think your trustee could have done better than 3/16 with a profitable well already drilled in 2011.
Frankly, if they needed a ratification from me to make the lease effective, they would not get it and I would do my own negotiating but I don't know your situation, whether you are inheriting from an estate or a trust.