Pankake well

[Bob Hoff]

I wonder if any members have an interest in the Pankake well 21043 in 99-157-6.  According to the state no oil has been reported produced by this well since September of 2019.  My lease says lease is terminated after 90 days with no production.  It has now been over 200 days.  I know courts give a lot of leeway to oil companies but this is ridiculous.  

The well file shows nothing as to why this well is shut-in.  Bruin recently sold the well and lease to Crescent Point Energy.  They just took out eight permits but have no drilling rigs operating in the state.  I am wondering if Crescent Point acquired a valid lease.

Production from last summer suggests there may have been a problem with the well but the lessee is supposed to make a good faith effort to repair it.  

There is an operating Madison well in section six but I have no interest in that.  I don't see how an old Madison well could hold the lease by production of a Bakken drilling unit.

Thoughts anyone.

[Bruce Oksol]

I have no experience in this area, so I can't provide any insight.

Very few people actually read this blog any more and almost no one participates in this group any more, unfortunately, so it's unlikely we will get answer, but if I hear anything I will definitely post it. There are other better "mineral owner" blogs / groups that might have more insight.

Thousands of wells are being shut in; the state is considering whether the state should actually enforce companies to shut in uneconomic wells (or as they call it, "wasteful" wells).  My hunch is that if push comes to shove -- where an operator might lose a lease based on this language -- no production within 90 days -- operators will ensure that all wells produce at least one day each month.

I assume you've been in touch with the operator.

[Bob Hoff]

Thanks for the reply.  I was taking a long shot.  I would just note the lack of production occurred long before covid and they didn't even pump one day a month.  

[Bruce Oksol]

I certainly don't understand it. You have no idea how many wells I see come off the Bakken for months at a time for operational reasons (neighboring fracking, etc). Generally, there's always another well producing and holding the lease by production. But with a lone well and no production, I obviously can't explain it.

There are mineral rights forums that might offer an explanation. I've pretty much stayed away from these issues on the blog for various reasons.