How can I have negative production for current month, (not an adjustment)? OIL (BBL) 100.NR NR Mar 23 (191.00) 74.47 (14,223.96)
This is Repsol in the Eagle Ford Shale…. Thank you!
Contact the operator and ask them what is going on.
Is this standard operating procedure?? Question was how oil production could amount to a huge negative revenue number….
Response from Repsol:
“The March 2023 production was originally paid based on an estimate in April 2023. Repsol then true-up the following month, recouping this March 2023 payment as there was no actual oil production for the month of March for the Franklin B 1H well.”
It can happen. Wait and see what next month brings. If this is a brand new well, sometimes an operator will pay an estimate in order to not have to pay interest for being late in the first payment.
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Yea, Let them tell that to the App. District!
Are there no state audits in place to hold oil and gas operators accountable to pay royalty interest if they’re late in making that first payment? i.e. I assume it’s up to the mineral owner to somehow keep track of all the data and hire a lawyer to call them on the carpet if they fail to pay the interest?
It seems to me that along with what the state and IRS require for production reporting, there needs to be automatic tracking and reporting on behalf of mineral interest owners who are most at risk of getting ripped off.
Communication and transparency from oil and gas companies are sorely lacking when it comes to navigating the arguably complex world of mineral ownership.
Up to the mineral owner to stay on top of their payments and request interest. Some states have an automatic penalty without a request. Others require the mineral owner to request the interest. Just the way it is unless the laws change.
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