Looks like there has been a new Permit issued for Crowell well SW of Glenmora. Was SN# 251311 & now it is SN# 251809.
As of last week no rig yet.
Just a question? Does anyone know what rig or type of rig is suppose to be coming to the Crowell 251809 site?
Not until a rig is assigned or spud as reported in the weekly rig report.
No rig as of yesterday.
I have to keep preaching patience for everyone - even when rig gets on location and starts drilling, it will be at least six months before we know ANYTHING about results. And probably longer as to what these results mean for the area.
We just enjoy the excitement of it all! The chase. Tell me if you know RM, on BLM land what does "Transfer of Overriding Royalty Filed" mean. BLM unit I am in just did this on 6/27/19.
I am not familiar with that term - sounds more like a Skip question.
Sorry - I know my limitations! LOL
And I know mine. Insufficient information for a comprehensive answer. Overriding Royalty Interests are generally a form of compensation, or potential compensation, for conveying a mineral right or royalty interest. The speculators that we discuss out offering leases in the emerging LA AC play are attempting to acquire leases at a lower royalty than that acceptable to an operator. An operator may be willing to acquire a lease with a one fifth royalty and give the lessee a five percent override equaling 25% in royalty burden. It is speculation as it often turns out that the override is worthless if a play does not reach an economic benchmark leading to full development of the specific mineral interest.
An overriding royalty is the right to receive revenues, in addition to the basic royalty, from the production of oil and gas from a well without paying the drilling or monthly operating expenses from the well. Overriding royalty interests are not connected to an ownership of minerals under the ground.
Thanks Skip! The Bureau of Land Mgmt Unit I am in has several Lessees, one with 90% (MBI Oil & Gas LLC out of ND) other 4-5 (investor/land company etc) or so with 1-2% and an action dated 6/27/19 only said "Overriding Royalty Filed". So could this be a change in % amount Lessees or one got out. I am getting my info from www.thedrillings.com and selecting Leases, Louisiana, Rapides Parish etc. The BLM Lease Serial # unit I am in is LAES 057320. It was leased back in 5/2012 for $207,345.00 @ 12-1/2% Royalty Rate. Interesting info. Several other BLM Active Leases around have also been updated recently. Prior to that nothing since 7/2018.
The ORRI would be from one party to another. If the source you are using doesn't have that detail, the only other place you would be likely to find it is the parish public records maintained by the Clerk of Court.
Thanks SP, I work just 2 blocks from courthouse so I may just have to check it out one day.
The BLM requires all transfers of ownership (Wi and ORI) as well as change of operator on their leases be filed with them. Although it is customary to file these transactions in the county / parish where the lands are situated, it is mandatory to file within their records. Skip is right that in this case this transfer amounts to a conveyance in a right to receive revenues from the well from a leasehold / WI owner to another party. However, in days long past “extra royalty” in the form of an ORI was sometimes conveyed to the mineral owner by the lessee as an additional consideration to the lease. It added to confusion as the compensation reserved from production by the lessor (from revenue or production, saved and sold by lessee) is a royalty, and basically such a transaction is typically just a royalty. The practice stopped around the 1960s - and now lessor simply receives a royalty of whatever fraction.
FYI, in some states the BLM tracks the amount of ORI conveyed and limits same to preset amounts such that their leases do not become so unduly burdened as to hinder development. I do not know of any such limitation I’m the Eastern States (e.g., LA).