Trudy Well update

According to OCD filings, Spur is supposed to start drilling the Trudy wells in Eddy, 7-19S-25E pretty soon. So I searched for some info and found an OCD order on forced pooling for the wells. We are leased so no problem for us, but the order increases the unit size from 320 acres (of which we own a very small piece) to 480 acres. Now including part of section 6, it seems. And it looks like there are a number of “units.” Not sure what this means for us, if anything. My guess is it’s better to be a small piece of a bigger pie but I am not sure. I don’t know if we are part of all the new units and if that matters. Any thoughts?

Actually, they’ve already started drilling. There’s already been chemical delivered.

Thanks. Good to know. I assume when you say chemicals have been delivered, that relates to fracking? I am also interested to know what the change in size of the property from 320 acres to 480 means for our royalty interest prospects. Does it mean potentially more revenue from a larger area or are we being diluted by a shrewd operator?

I don’t know much about all the legalities of minerals. I just keep an eye on them because I have about 11 NRA. I’m not even sure about that part. I just happened to know they’ve already started drilling because I have friends that sell chemicals and they are delivering chemical to the rigs.

Thanks. The confirmation of drilling activity is much appreciated.

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