Replies to This Discussion

Permalink Reply by Joe Aldridge on October 10, 2011 at 21:00

Madman,

Its all dependent on how quickly the company gets the Division Order together. They are dealing with a large Unit and it may take some time.

Permalink Reply by Watt Keller on October 11, 2011 at 2:07

Most of the title research is done before leases are offered so generally it takes about a month to put the Division Orders together. Usually you can expect royalty payments to commence within three months. Your payment on royalties will be two months back (i.e. you'll be paid for Sept in Nov.). It really boils down to how many people are involved in a unit and whether there is any disputed mineral ownership as to how long it takes to break down the Division Orders. If you haven't received royalties after three months you can send a registered Demand for Payment to the oil company if you don't have a good working relationship and are kept informed. Good oil companies will keep you in the loop and provide intel on royalties.

 

Your percentages will be different between Lease percentages and Royalty percentages which is based on the lease you signed. A good mineral attorney would be able to check your percentages and provide you with the numbers you should receive.

Permalink Reply by Madman on October 11, 2011 at 3:04

Thank you both for your replies.  I will keep you all posted on the timeframe between production and payment.  Again, thanks much.

Permalink Reply by Old Scout on October 18, 2011 at 7:33

This just in....

AUS C RA SUB;BRIGGS completed SEP19 (10 Miles SE of Dominique 27; Northern St. Landry)

2184 BOPD; 6795 MCFD; 3276 BWPD

Permalink Reply by WHuguet on October 18, 2011 at 8:00

Wow!

 

Jay, SONRIS shows Atinum as the operator.  I didn't think they were affiliated with Anadarko? 

I also thought this was a horizontal recompletion of an old producing AUS well.

 

Indigo has permitted a dual lateral well fairly close by, but don't know if drilling has begun.

 

Permalink Reply by Joe Aldridge on October 18, 2011 at 8:09

Jay,

Will is right it is Atinum not Anadarko. Anadarko screwed the Dominique well up the same as Nelson/Pryme did.  Its only producing 700 bopd or so. I still have a problem with this long lateral drilling. It just looks like they are tieing up acreage and screwing up the formation with mud loss.

Permalink Reply by Joe Aldridge on October 18, 2011 at 9:02

Jay,

Everybody makes mistakes. I do have a question. What do they mean by "Pumping pills" for mud loss control? I'm not familiar with that and can't find a reference to it on the net.

Permalink Reply by FXEF on October 18, 2011 at 10:15

Joe,

Recently, specialized and chemically activated cross-linked pills (CACP) designed to stop whole mud loss have been developed and have shown significant advantages over conventional loss circulation methods.

Lost Circulation Control: Evolving Techniques and Strategies to Red...

Google is your friend!!

Permalink Reply by Watt Keller on October 19, 2011 at 3:03

Nice link FXEF. Atinum has lost returns in the Indigo 16 as we speak. I don't know if they are using the pills to push through but it would be a good bet. That's one heckova' drilling crew on that rig.

Permalink Reply by Joe Aldridge on October 18, 2011 at 10:11

Jay,

I rest my case. Atinum did 2 - 4000 ft. laterals. I don't think drilling an 8000 ft. plus single lateral that Anadarko is doing is helpful, wise or the way to go in Chalk; except to tie-up a lot of acreage and spread the mineral owners wealth around.

Permalink Reply by Watt Keller on October 19, 2011 at 3:08

The jury is still out for me on the long laterals Joe but the facts do tend to support your position. The shorter laterals are producing better and if you look at the old well histories the big hits came on verticals and single short laterals in the AC. That being said it would seem to make sense the longer laterals would provide more fractures and in turn better production but it also seems as if something blocks that flow on the longer laterals. Not being an engineer I can only look at production history and the numbers.

Permalink Reply by Joe Aldridge on October 19, 2011 at 4:43

Watt,

Thanks for the post and the support of my concern for the drilling of the long laterals. I'm not an engineer either but saw wells drilled through Chalk in the area North of Baton Rouge when the Tusc was hot. The drillers would drill through the AC and mud it up to the point that they never got any of those wells to produce in the Chalk. The chalk formation basically has been ruined in the areas of those wells. If you go the the web and look for "Mud loss problems in naturally fractured formations" there does not seem to be a solution to the problem. My concern has been and is that these drillers are trying to drill long laterals in a formation that does not have a sand or shale matrix that allows a wall cake to build. It almost looks like they are drilling long laterals because they can and to protect lease positions and tie-up large blocks with large units. This is neither productive for the industry, the State or the mineral owners. DNR should be limiting the length of laterals and the size of the units until someone can prove that drilling 5000 ft + laterals does not damage the formation. 

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