I received 2 DOs for the Shadrach Moses Cantaloupe 221H in Reeves County Tx stating that the well reached a 200% payout on 7/1/2022. One is marked interest type RI and the other MIP. Can anyone tell me what this all means?
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Nobody knows? I was hoping someone could tell me something.
I’m unfamiliar with the code ‘MIP’. If it’s not listed somewhere on the DO, I’d recommend reaching out to the operator for clarification.
Thank you! Any opinion on the rest?
Were you previously in pay on the well?
I’m curious why the DO references 200% payout.
If you didn’t sign a lease and the operator had to pay your portion of the drilling expenses (AKA if your interest was carried), you usually start receiving payments after the operator has recouped those drilling costs (when the well has reached payout). If I’m not mistaken, this usually happens after the well has reached 100% payout.
There could have been an agreement that determined before-payout and after-payout interests. Maybe interests would change once the well had reached 200% payout.
It’s really hard to put together a full picture without all the details.
We have not been in pay on this well. My understanding is that we are unleased and therefore 1/8 owners.
I think that it is a MIPA well and the RRC approval will have set the payout for mineral owners who do not lease and elect to be carried. The MIPA order will be available on RRC website. Mineral owner will have gotten a copy and had option to lease.
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Yes I see it references MIPA 08-0316736 and 08-0316738. I am trying to get a feel for whether this is a wonderful thing or not. ShaleXP reports 289,409 BBLs and 1,458,293 MCF through 11/23. Permian Resources said I had a 50/50 chance of getting paid around the first of March but I am wondering what to expect. Thanks for your help!
I decided 2 years ago not to Lease with Noble Energy I couldn’t get them to pay me the Bonus Payment I wanted. So, I thought let’s try this Unleased. I kept getting bills for Production Costs or rather Statements to what my share was. So the good news for me - They wanted to send me a large check and wanted to check to see if my mailing address was correct. This was January 2024. They sent me a check for $420,000 which was the net after they took out $140K for taxes. So I’m happy and glad I tried it - First time
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Good for you! Did you get Division orders to sign before that? I got 2. I have not gotten any statements about Production costs.
Operators do not send out production and royalty statements in TX until a Division Order is signed. if you have questions about costs and are a working interest owner, then contact the operator directly.
Thank you for the clarification1
Since payout was reached such a long time ago, would statutory interest be due on it?
Your MIPA interest’s costs will be deducted from only your WI component, not RI component. I’m curious to see if they’ll send you a detailed statement on the costs, I’ve got a few MIPA interest I’m hoping reach payout after the 200% risk penalty. I also have a UNWI with one operator that will send me JIB’s, my buddy’s UNWI is netted out of the check he gets, and has no clue what the costs are.
Thanks for the input! No clue is my middle name. Permian said I had a 50/50 chance of getting paid at the end of this month.
Thank you for letting me know. I’ve found your post to be very helpful. If you could, keep us updated on the statements you receive from Permian Resources on your MIPA interest. I’d greatly appreciate it.
I received no funds today on these 2 DOs. I suppose these companies always slow walk any moneys you have coming.
At least they have informed you that the well has reached payout, and are putting you in pay status. I’m pretty sure my MIPA interests have reached payout after the risk penalty. Permian Resources hasn’t contacted me at all yet. Keep us updated how next month’s check comes out.
What was your decimal interest? If I may ask…
Depends on the unit. Largest NRI is roughly 0.0001