Hello all, I have recently started learning about the interest that I have inherited in Stephens County Oklahoma from a family member. The following screenshot is from an the operator of the Krebs Wichita API 35-137-20897. I have not been able to find a lot of documentation on this well so I am a little confused on what I have exactly. Can anyone break this down for me? Any help would be appreciated. Thank you!
It was drilled in 1973. Sold in 1987. Tenneco to Spess. 13-1S-4W. Sycamore. Spess still operates. . Contact their Division Order department to get more info. Have your family member’s name and whatever info that you do have.
You own a working interest in the well. That is, you pay your portion of the costs . Your portion being 0.8928%. For those costs, you receive 0.7812% of the revenue (NRI). In addition, you get 0.2604% of the revenue WITHOUT costs, as an override.
Those two things are separate, but in total, you pay 0.8928% of the costs and you should get a 1.04% of the revenue.
So you are getting a $6 bill. And you should be getting paid your portion of a few hundred mcf a month. Lets say it makes 150 mcf/mo @ $3/mcf. That’s $450 of revenue a month. Or $4.70 per month in revenue.
Your mileage may vary, but I probably would not spend much time worrying about this vertical well. For now. There are horizontal wells right next to you. You start getting 20,000 barrel of oil HZ wells at 1/8 of that interest or something and you will probably feel pretty cool.
I could be wrong.
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Thank you both for the information! Unfortunately this operator is very small and does not have a DO department its just a one woman show. They are also only drilling enough to keep the lease active and I have not received any revenue from them since last year when I was paid for the money held in suspense in the dead time between the transition. Now all I get are bills. Thank you for the info about the HZ well. I think I have a claim to it! I will have my landman look into it.