Kraken To Drill Three Extended Long-Lateral Gladys Wells In Rainbow Oil Field -- February 1, 2023

Updates

February 1, 2023: first comment, below, from a reader --  

I have the mineral rights to 28457 which is Gladys 1-20H.  Are these drilling permits going to have any affect to my lease, or better yet, how would I find this information ?

There are some nuances with regard to that question to which I'm not sure. So take my reply with a grain of salt.

This is how I would approach this new information:

1. Any Bakken landman would be more than happy to answer your question. I will post contact information for a couple of landmen later. If you contact, you will be placed on their mailing / contact llist and they will contact you periodically.

2. All things being equal, the value of your mineral acreage has gone up significantly, but the appreciation will start to decline once these wells start producing.

3. Your existing lease will not be affected, except as noted in paragraph 2 above. But, the lease per se is not affected. 

4. You will "participate" in these new wells. Your minerals associated with #28457 is based on 1280-acre spacing. The new permits are now on confidential status so I don't know the size of the spacing unit, but I assume the spacing unit for two of the wells: 1920 acres and the section line well twice that, or 3840 acres. 

5. Bottom line:

• unless you want to participate in the actual drilling of the new wells, not only do you have nothing to do, but even if you wanted, there is really not much you could do;
• expect increased interest in your minerals now that Kraken has telegraphed it plans to drill more wells here;
• your percent of the oil production from these new wells will be "figured" over 1920 acres for two of the wells, and over 3840 acres for the section line well (assumption only; wells are confidential, so I don't know spacing unit size)
  
• once permitted, Kraken has a year to show activity with regard to drilling, but can renew the permit annually by paying a $100-renewal fee

Disclaimer: I have neither formal training nor personal experience with regard to the question(s) asked by the reader. This is my opinion only. If this is important to you, go to a) the source, and/or b) to professionals. My thoughts are based on very, very limited information. Take this as "education" only and not investing advice.

Original Note

From earlier this week, Kraken with three new Gladys permits in Rainbow oil field.

These will be extended long lateral (3-section / 3-mile lateral) wells: