Barry, Every Barrel of oil they sell wheter now or later has you entitled to the minerals according to your lease. You will get a check for all oil sales but being in oil business i know it takes a few months to have every thing set up. All the title and deeds should all be done and divisions order is done to, now it’s just about getting the DO on pay status.
Anther question. I got in touch with the landman working our land. The first well they put on our land is producing and He told me that he had sent the paperwork to the division orders department and we should be receiving div. orders in the next few weeks. This was the first well put on the families land. This particular section is 320 acres of which we have 1/2 Mineral interest.
So, that’s 160 net acres. My share is 1/12, or 13.333%. Our royalty is 3/16, or 18.75%. Can someone tell me what my decimal interest will be and show me the formula that brought you to this number? From what I have read the div. order will come with a decimal interest. Is this true?
Barry do you have 1/12th of the 160 Net Mineral Acres within a COGCC 320 Spacing Order Drilling Unit? ?
Opps! Very sorry. I meant Jason, not Barry. Jason, I would love a copy of your spreadsheet for future use. My email is [email protected].
Thank you!
No. I believe it’s a 640 acre unit.
Barry has 13.33 (1/12th of 160 acres) Net Mineral Acres. So presuming it’s a 640 acre spacing order and 1 well (gas well?) Your decimal is .003905, now if the spacing order is 320 acres then your decimal is .007811if it’s a spacing order of 160 acre then your decimal is .015621 this is according to a 18.75% royalty to mineral owners. I have a excel spreadsheet if anyone wants a copy i can email it.
Isn’t it correct that if you have 1/12 royalty on 160 acres on a 640 acre spacing you would receive 1/4 of total output X 8.333%?
Barry,
I would love a copy of your spreadsheet for future use. My email is [email protected].
Thank you in advance.
Jason, do you have any insight as to how the division order works on horizonal wells? Example, I have 5 HZ wells going in on my 160 acres and they go across my 160 and the 160 to the south also. The 320 they go across make up the south half of the section.
I heard there is some magic formula that they figure this with?
Gary, Send over your legal to my email [email protected] and i will map it and also send you a spreadsheet that will figure out HZ wells. Sandy i will email you the sheet tonight.
Thanks. I just found the link to the royalty tutorial that someone put up a few posts back. It’s got the formula on there. A spreadsheet would be great. This is the first test well they put on one of our sections and it sounds like more are coming. Bring it on!!! Thanks again [email protected]
Jason,
Me, too! Me, too, please.
Thank you,
Mike Skinner
Will get those emails out tomorrow, been working on the hail damage to my house!!! Wow 1 hour long hail storm anniliated everything.
Does anyone know how much oil is produced out of 1 well in Weld County?
Me again, it has been awhile since I posted the family “history”, but now a new development. Noble Oil has applied for a drilling permit on the mineral rights land. All in my family have signed a lease but me and one other cousin. I filed a protest and I guess have been accepted. What I need to know is the amount being paid now per acre as bonus. I also need to know what the percentage of profit is currently. The last time I spoke to a landman we agreed to 18.25%. Well nothing came of that, so now I am involved with the hearing process. Any advice would be appreciated.
Regina: Where are your minerals? Lease bonus is very dependent on that.
Noble is a huge company, but I have so far found them to be fair and efficient. If they have most of the others leased, they can and will force pool you.
Here’s a link to the forced pooling blog specific to Colorado that may be of help: “The Forced Pooling Card”
Regina: Steve is right. Forced pooling was designed for just this kind of situation. They will drill and they will produce oil/gas if there is any there. You man as well cooperate and realize something beneficial from it, and save yourself a lot of frustration. I also agree with Steve that Noble is a good company. They informed my family that we had mineral rights two years ago and due to a large family and no wills, it has taken some time to get it all sorted out but we are finally to the point of anticipating our division orders showing up in the mail. We won’t realize a lot out of it, but every little bit helps.
Regina, I don’t see why you can’t submit your own reasonable lease to Noble. If it’s no more than the best lease Noble offered to anyone else, it may be of interest in a forced pooling hearing, which is only taking place because someone is claiming you have refused a reasonable lease offer. Just a thought.
Marsha,
The average Vertical Niobrara Crude Well has an (EUR) Estimated Ultimate Recovery of 75,000 to 125,000 barrels most the production around 35,000 barrels first year then stripper (less then 10 a day) for 30 years.
For a Horizontal it’s 250,000 to 300,000 EUR and most the production will come within 5 years.
Dont quote me but first year to 3rd year should produce around 200,000 then really fall flat to around 1500 a month .
If the operator re-completes (Fracks again) then he could see around 35% to 50% of its IP for a few months then it will fall flat again.
Average Frac stage is $35,000 and there are 12 to 30 stages so the operator would needs some convincing to do this again.