Morning/Afternoon.
Everyone here has been extremely helpful and I recently received division order paperwork. On the paperwork there are some numbers that are not identified by any unit of measurements I am familiar with. Hoping someone can help me.
Sec 36 (well 1) 48% Sec 1 (well 2) 51%
Then further down it lists overriding royalty 0.00001
The Section 36- 48% refers to Section 36 having 48% of the perforations in the wellbore (most likely not exactly 48%) and Section 1 having 51% of the perforations of the wellbore (most likely not exactly 51%) The total must be 100%. This is a multi-unit well so each section gets its percentage of the wellbore based on the percentage of wellbore perforations. The 0.00001 represents your share of the overall production from this particular wellbore.
Hope that helps.
Todd,
Yes, this was extremely helpful. So at the 100% point is when the wells will be operational? Just want to make sure my assumption is correct.
The 0.00001 ORRI amount seems extremely small. I realize this can likely not be answered, but had to use a lot of my own time and money to get this situation squared away. Seems like there might be no return on investment for this. Is there a way to approximate how much any amount of return would be over the life of the well?
If you care to share the Section, Township & Range, I can look at the wells in the area around these to get some approximate production information that may help.
Both are Stephens County, OK
Sec 36-1N-4W Sec 1-1S-4W
You should be getting paid on the Liberty Valence 36-1MXH well, now operated by Continental Resources. It is a Sycamore formation well. Continental is trying to get approval to drill a deeper well into the Viola formation. If you aren’t getting paid by Continental, you should contact them.
I had just completed the paperwork to transfer ownership this month, and my father (previous owner) has been deceased since 2014.
Is this something that will involve backpay?
The overriding royalty is a percentage cut out of the working interest ownership and usually given to a geologist or a landman or someone who helped put the deal together. It is part of the the 100% total ownership.
The Liberty Valence 0104 1-36-1MXH well has been online since June 2022. The Division Order lists your share of the royalties that they are holding in suspense. Since your father passed n 2014, you might want to check for any unclaimed funds with the OK state treasurer as those sections have a shallow field above the new well. Might be royalties waiting there.
Yes, you should be payed. I had to have a lawyer in OK to go through probate court when my mom passed away. She did not have a transfer on death deed. Her FL will did not cover this.
In some cases, an affidavit of heirship will put you into pay status. However, in Oklahoma many companies are requiring a probate. Most mineral probates are fairly straight forward.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Before I contact Continental, and advice for the best way to word an email to them about the Liberty well you mentioned so that they understand what is being asked?
I don’t want to poke the bear in this one as the ORRI transfer has just been completed.
Checked with OK unclaimed property, nothing recent has been listed.
Send Continental’s Division Order Analyst group a certified mail requesting payment and interest. Send a copy of the ORRI transfer that was completed and the section, township and range. Tell them the name of your father. Probably nothing at the state for Liberty since the well is too new to turn in.