received a payment on frances wells. Seems to be dated 9/17/2020. Noted to be signed and sent back in. Title is “shut in”. Seems the well is being shut off… not good for owners. Have an offer on the table, seems to be a good time to unload ? Anyone else recieved something like this ??
It is more helpful if you give the Section, Township and Range.
Are you talking about a Division Order?
It sounds a bit like a shut in payment. Martha, do you need to sign normal shut in payments?
It does sound like a shut-in payment which is why I asked about what kind of document it is. Shut-ins happened this spring and summer during the pandemic demand drop and price drop. Shut-ins are not necessarily bad, but need to know the S-T-R to check which wells and how new or old they are.
There are lots of companies out there right now trying to buy while prices are low. Personally, I am not selling. Each person has to make their own decision, but make it with the best data that you can get.
It was for the Frances wells in sec 1 7n 10e they made about 8 bucks last 2 months. It was a shut in payment just on those wells. Everything else looks fine.
The Frances wells are horizontal wells with sec 1 & 2. Looks like they have been shut in since either Feb or April depending upon the well. Many companies did that to conserve their money in the ground instead of producing during the Covid crisis and low prices. They want you to reply that you did receive the shut in payment. I have had those before. I just send the receipt back. They must give you a payment every year as long as they keep the wells shut in. Now go back to your lease and see if you have a shut-in time limit on your lease.
There can be various reasons to shut in. In the good old days, shut-ins were mostly for gas wells until a pipeline could be built to take away the gas. Now, the shut-ins are more for economic reasons. Pandemic, supply and demand imbalance, low prices, pending bankruptcy-just to conserve production and keep it in the ground until better times.
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