Notes Re: Two Grayson Mills Affecting A Reader -- July 5, 2024

Locator: 10010GraysonMill.

Rambling thoughts / comments on the most recent Grayson Mill production statement received from a reader, dated June 28, 2024.

Fourteen wells total; two wells of interest this statement.

Two Wells Of Interest

Cuda 14-26F XE 1H: see this post.

• 39756, 2,177, Grayson Mill, Cuda 14-26F XE 1H, Round Prairie, super long horizontal -- three sections, t11/23; cum 163K 5/24;

Williston 30-31F XE 1H: see this post.

• 39366, drl/A, Grayson Mill, Williston 30-31F XE 1H (in the Brakken unit as a line section well). Noted July 24, 2023. Catwalk oil field; first production January, 2024, an incredibly huge well, producing 62,432 bbls in the first 28 days; cumulative production through May, 2024: 196,724 bbls of crude oil. 
• How big is this well? In the early days of the Bakken, a well might produce 100,000 bbls of oil in one year, and maybe 150,000 bbls in two years. In this case, this well produced almost 200,000 bbls in the first five months.
  

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CUDA 14-26F XE 1H

This is important because it's been producing oil for about six months and this is the first check received for this well. It's a section line well as noted by the "XE" in its name, and thus, even if it's a big well, the royalties paid will be significantly less because it is a six-section drilling unit instead of the standard two-well drilling unit.

This is also important because it represents a brand new well in this area for the reader and it confirms Grayson Mill has the deed from the reader to confirm the reader has interests in this well / this drilling unit.

The Cuda well is located in an area in the Bakken that will not produce particularly remarkable wells.

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Williston 30-31F XE 1H

This well is very, very exciting. It is located in the Catwalk oil field just southeast of Williston near the Anna wells in Last Chance oil field. This is an incredibly good field and will produce a lot of great wells eventually.

Like the Cuda well above, this well (the Williston 30-31F well) is a section line well, and likewise, no matter how good the well is, the royalties will be significantly reduced because the spacing is four sections, twice the size of the standard two-section Bakken well.

However, having said that, the reader has minerals in the drilling unit to the east, the Brakken drilling unit, of this Williston 30-31F section line well. At some point down the road, Grayson Mill will put in at least eight new wells and perhaps as many as sixteen new wells in that Brakken drilling unit. 

These wells will most likely be much better than the Anna wells.