Grayson Mill Proposes Adding Three Wells (?) To An Existing 1280-Acre Unit -- January 24, 2024

Locator: 46630B.

From the hearing dockets, Thursday, February 22, 2024, this is a case, not a permit: 

Case 30703: 

Application of Grayson Mill Operating, LLC for an order authorizing the drilling, completing and producing of a total not to exceed eight wells on an existing 1280-acre spacing unit described as Sections 15 and 22, T.150N., R.99W., South Tobacco Garden-Bakken Pool, McKenzie County, ND, and such other relief as is appropriate. There are already five wells in this drilling uunit..

Current wells:

• 26545, 1,631, Grayson Mill, Skaar 150-99-15-22-2H, South Tobacco Garden, t3/14; cum 255K 11/23;
• 26546, IA/1,622, Grayson Mill, Skaar 150-99-15-22-3H, South Tobacco Garden, t3/14; cum 201K 9/20;
• 26547, PNC, Newfield, Skaar 150-99-15-22-10H, South Tobacco Garden,

• 20737, 1,313, Grayson Mill,Olga 150-99-15-22-1H, South Tobacco Garden, t6/14; cum 259K 11/23;

• 27507, 1,029, Grayson Mill, Craig Skaar 150-99-15-22-5H, South Tobacco Garden, t3/14; cum 255K 11/23;
• 27506, 1,250, Grayson Mill, Craig Skaar 150-99-15-22-4H, South Tobacco Garden, 6/14; cum 240K 11/23;
  

Back of the envelope:

• let's see total royalties for these five wells, with several assumptions:
• assumptions:
• mom-and-pop mineral owner: 10 acres
• drilling unit: 1280 acres
• royalty: 3/8ths = 0.375
• average price of oil = $70
• Now, the calculations:
• total oil produced as of 11/23): 1,246,000 bbls of oil
• decimal unit [(10/1280)*0.375)] = 0.0029297
• 1.246 million bbls of oil at $70 / bbl with decimal unit of 0.0029297 = $255,528. 
• if 100 acres = $2,555,280. 
  

Maps: