I found the production records for 3 months of production on this well. I have minerals in both sections. Largest share is in Sec 2. Is this a large amount of production or just average. I have not received a check yet, but since the first one will probably be in near the end of the year, I need to decide if some needed euipment should be purchased this year or wait until the checks really appear. I would appreciate some advice on how the production numbers correlate to money received… Thanks
I forgot to post the production records.
otcportal_tax_ok_gov_gpx_gp_pundetailsprint_php.pdf (52.6 KB)
Cecil, how did you get All Three (3)Pages to show up like that and so Organized ?
Thanks Johb
I wouldn’t get to excited about 40 BOPD. Gas OK, but $2.00 mmcf won’t lite up the checkbook.
The general time frame is to get division orders five months after first sales. They are required by statute to pay by 180 days after first sales. However, if it is a multi-section well, that may cause a delay as their are two sections with hundreds of owners in each one. They still have to pay the interest, but you need to request it by certified return receipt letter.
Commerce Comment 11-2-1H had an active date of 3/3/19, so likely to be fairly close to the first sales date. Your royalties will be based upon the following formula: net acres/spacing acres (actual) x royalty x % of perforations in your section. In this case, the spacing is 1280. However, section 2 is not a pure 640 acres. Slightly larger, so your denominator will be a bit over 1280. Also, since they spaced at 1280, the last term is 1.0.
For every dollar that the company sells product, you will receive your decimal amount (minus any taxes and post production costs if they are allowed in your lease).
In my opinion, always better to have the money in hand first before buying anything, but that is personal opinion.
Theoretically, you should be paid in September or October. I would start fussing and demanding your division order and interest payment by certified return receipt letter if you don’t see anything in October. I usually wait eight months before bothering them.
I looked up the Nasdaq prices for Nat gas and March was 2.95 mcf and went down to 2.65 in May. Oil went from 59 to 63/bbl. The royalty is 20% and 67% is in Sec 2 and 33% in 11. I have 60NMA in 2 and 55NMA in 11. Figuring on the acreage in the differeent sections, and the 20% royalty, I came up with just over $22.5K for the 3 months production. Not a lot as Todd stated, but for a retiree with a farming habit, it is not too bad, if I have not left out a deduction…
Thanks to you both for your replies. I have learned a lot from reading your posts.
The Oklahoma prices may be slightly lower than the Nasdaq, so be prepared for that.
I found the location on the site then opened the production tab and selected print. Then I printed it with PDF complete, a either cheap or free program that converts print files into .PDF. Then saved it to use anytime I need. I did not see how it came out on the posting, so I guess it worked!!
That does not surprise me at all. I need to find an attorney who handles damages from soil farming. Can you recommend anyone.
Cecil- those prices are commodities futures so aren’t relevant to what we as royalty owners receive. 80% of those numbers are a closer estimate and that is before production taxes. That also doesn’t account for any post production deductions if your lease allows them. You should also count on steep declines of 70-80% in the first year.