Just heard from Antero rep who states they have drilled our well (had no idea!) and they will be sending the first royalty check soon. Last I spoke with them; over one year ago, I was informed that because our unit is 'dry gas', our site was not on the books until 2018. Anyone else receive a similar surprise?
Congrats Kenneth, I hope the checks are significant and worth all of the headaches I assume you have endured.
Cheers,
WJ
Yahoo! Congratulations! You'll have to get the Division order first, but sounds like it's on the way:) Happy Holidays!
Thank you. I'm really not well-schooled in all this. In fact, I had almost forgotten about the thing, figuring nothing would ever come to fruition... The rep did mention a Division Order. Can you tell me what that is and what I can expect now, going forward? Such a rookie!!!!
Thanks WJ. No idea what to expect. Guess I could have asked the rep for an estimate, but quite honestly, I was flabbergasted that they even contacted me after all this time! I went online and found that the West Virginia Dept of Environmental Protection issued the work well permit in February 2014.
Congratulations....I'm in the same situation...absolutely nothing going on in the way of well-pad construction...perhaps next year...have written Antero off from earlier promises but its price driven and the market is soft.....I do get verbal assurances the wells will be drilled but we are in a long downturn cycle..."but it will come back",,,,,do you have one well or more?
Just one well. I had received the same verbal assurances which projected 2018 as the most-likely start date. It seems to me the permit was let just a short time after the conversation... Still baffled; but now hopeful concerning royalties, whatever they may be...
Kenneth,
A Division Order (Often referred to as a "DO") is a production companies acknowledgement that you own a specific percentage of a Well, Horizontal or Vertical. It will put forth the name of the 'specific vitals' of the well, leg of the well if it is a horizontal well, etc. I strongly suggest you place the Division Order in a safe place, with your estate planning, etc. Down the road, hopefully way in the future, your heirs will have the DO to refer back to, to confirm your interests, etc.
Congrats again,
WJ
Echo the congratulations Kenneth and the good advice you have received. Also I recommend that you read as much as you can, on this Doddridge site and around the bigger site. The Doddridge group is very active with a lot of knowledgeable people. The more you know, the better off you are.
Thank you WJ... Great advice!
Thank you Nancy :)
UPDATE: I received a DO from Antero for the Pennington South unit in January, (Pay Code S07 Need Signed DO) and a subsequent DO for the Lincoln unit (Pay Code 'M' In pay - Minimum $25). Both were classified EFFECTIVE: Date of First Production. I signed and returned both.
I guess I'm getting closer to receiving a check. I know the decimal interest in each unit. Is it possible to determine from that what the proceeds should be?
Thanks again to all for the great advice offered here...
Kenneth,
If you call the telephone number listed on the DO, the Antero staff is extremely helpful. That stated, 99% of the time you will need to leave a voicemail and they will return your call, usually within three days.
Additionally, the website https://www.shalecast.com/ is semi helpful in determining your 'predicted' proceeds, based on many contributing factors, over the expected 15 year production life. However, you will need a check stub to enter some of the parameters and who knows what prices will be next month, next year or in 10 years. Keep in mind the caveat of... You get what you pay for and shalecast.com is a free service.
If I can be of any additional assistance, feel free to email me directly via this site.
Cheers
Thank you! Just left them a message...
Kenneth,
When you receive your first check, you can buy a round of drinks for the board.
:)
Finally received our first royalty check last week which covered proceeds from January through December 2015. I'm assuming we'll pay WV state taxes on this next year. What is the WV state income tax rate?