I have spent an hour or so trying to decipher this invoice. For example I cannot believe that they sold three batches of oil on the 20th of December, each batch with 724.28 barrels, and all for the same price. What are they trying to convey to me?
Don- You are better off asking these kinds of questions of the operator/purchaser than those on this forum. We can only speculate, but they will have the answer.
It looks like there is more to the report not shown on the right. I can just barely see the Gross Proceeds column, which only shows for the first line for each sale date. My guess is that further to the right you will see the taxes withheld from each sale and your Net Proceeds.
In my experience, usually if you have 3 identical volume amounts on the same date it means that you have 3 different tracts/interests in the well. It only made the volume once, but the same amount of volume is applied to 3 different interests.
For instance maybe you own 2.5% total in the well but its 1% from tract1, 1% from tract2, and 0.5% from tract3. Hard to tell what’s up without actually seeing your decimal column. I get where maybe those are details you’d rather not share. I included a check of mine at the bottom where the well made 9182.48 mcf in June 21 but I have 3 different interests in the well as an example.
Nits: I’m assuming this isn’t actually an invoice/bill and is your check detail. The date isn’t the 20th of December, its for the month of Dec in 2020. 1/21 = Jan of 2021, etc.
I’ve seen a lot of these so it’s easy for me to say it’s simple, the first one is probably confusing. Basically they should show the gross volume. (And yeah, it’s usually with 2 decimal places) The price they received per barrel/mcf. Your decimal. Then your net volume. Then your net revenue. As columns. Hopefully your net amount of the gross volume makes sense based on what DOs you have signed and/or what you know about your interest.
I’d look up the well on the NMOCD website and see how much volume it made for each month listed. If its more or less what is listed there (724.2 barrels and not 3x724.2 barrels for Dec '20), and if your total net amount of volume is more or less right based on your DO/interests, then this should be pretty straightforward. IMO
Good luck.
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The production dates are for the months, not specific days. Read as Production month of December 2020 and January 2021. Production may be picked up over several days by truck or may be pipelined to a central collection facility. Pricing is by contract formula based on average prices over the entire month and not just at the price an any one day. You can compare volumes to what is reported to NMOCD. Entire page is not visible, but it appears that there is may only be one line with gross sales revenues.
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As usual, you have cleared it up for someone unable to do it themselves. Thank you so much for the help!
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