Repsol updated their accounting system and switched over to Energylink as their statement provider. With these updates, their statements have become more detailed and are reporting by individual tracts instead of combining them if they’re from the same well. They also started listing different types of gas instead of just MCF. Can anyone help me understand which line items I need to add up to compare their numbers with the ones listed on RRC site?
For example, on the RRC site, the numbers they list are:
GW Gas (MCF) | Production 9,274 | Disposition 9,274
Condensate (BBL) | Production 1,211 | Disposition 1,187
In my statement, I see where OIL (BBL) Volume is at 1,187.23 (even though that is listed for May on the statement), but I’m having trouble determining the MCF number on the statement.
For oil, you look at RRC disposition volume each production month and that should match the check detail. You need to watch for subsequent adjustments, such as for the April disposition volume and net the numbers over time. You will not be able to match the RRC gas volumes because Repsol is reporting the residual gas volume (mcf) after removal of liquids separately. The ethane, butane, propane, isobutane and propane are the liquids removed from the gas during processing at the gas plant and then sold separately from the gas. This is because it results in greater total sales instead of selling the gas before processing. The liquids / products / NGL are usually measured in gallons and not in mcf. Many companies report the oil for one month and the gas and products for the prior month on the same check stub each month.
Shrink for residue is typically around 60-65%. A wellhead mcf (what is reported to the state) becomes 60-65% of a residue mcf plus NGLs.
So making 9274 mcf as metered at the wellhead (i.e. coming off of separator on pad and what is reported to the state) becoming 6030 mcf of sold residue coming out of the processing plant sounds legit.
I like to look at the total gas revenue divided by the total reported mcf. In your case it looks like the gas accounts for $641 of net revenue and your share of the wellhead gas was 9274 * .01939 = 180 mcf
So you are effectively getting paid $3.56 per wellhead mcf. NGLs are a good thing.
Thanks for your help. Apparently there are 3 tracts per wellhead for this lease, so that’s not the full picture of revenue per wellhead mcf, but what you’re saying helps make sense of it for me. I appreciate it!
We have been going back and forth with Permian from the beginning of their taking over Colgate and Centennial. We even tried to go to the office to have a sit down only to learn no one is allowed in the building, this sure didn’t sit well. RRC will not even talk to us about it, we received the same generated letter from Mr. Hargrove too.
Please help keep others informed of progress, if any, on this.
