We leased rights on a section in Stephens County on a new horizontal well. The well was completed back in February or March and then they capped it. I have heard speculation that they are waiting for the bbl price to go up. I also heard there is gas there, too. Any ideas why they would cap a new well? I think by now they have missed a quarter of production.
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Allison: What is the Section/Township/Range of the well in question? Wells aren’t “capped”. They are shut in or plugged.
Todd M. Baker
Sorry, Todd, I guess it is plugged. It is S17 1S 4W.
SKEET 17-20 LW1H was spud on Oct 16, 2018. It usually takes about four-five months to drill and complete a well. It was probably just finished. It takes another four to five months to get a completion report. Usually a Division order shows up in about five months if there is production. Most likely, it is still in this process. You should hear something by August or so. I just checked the Gross Production tax site Gross Production and the well is not listed as active yet. If there is a problem with the well, they may shut it in to fix it. If they plug the well which is a permanent solution, that will be posted on the OCC Well Records site.Test
If you have production, you will get paid for it. Money in the ground is still money to be realized. Patience is often the name of the game.
Thank you Ms. Barnes. My information was coming from older relatives who apparently do not know how things work (these days).
Appreciate your informative response!
They may have heard something, but you won’t know for a couple of months.
Seems like the process takes longer than it used to. Not sure if that is true? If so, is it due to newer regs around pooling or the well types?
It is because with the newer two section wells and both 640 acres, you have hundreds and hundreds of owners instead of just a few owners for an 80 ac well.
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Thank you so much for the insight!!
It’s not capped. It’s “shut in” there is a pipeline capacity problem moving oil to market. A new pipeline is in the works. I’m in the same boat owning over 3000 active wells. Payments are slow. If you like you can call me at 405-641-1453 for more details. Have a great day Andy 405-641-1453