Does anyone have oil and gas production figures to date ( not the 24 hour test ) on the Gadwall well, Sec 30,T12NR5W in Canadian County, Ok, which was completed on June 4th, 2018.
I.contacted them last month and they told me to get back with them in a month. 2 weeks ago I emailed and got no response.
Thanks, John, Same here.
This is a reply to my own post on the Gadwall well.31-30 t12nr5w. The Oklahoma Tax Commission now reports six month total production thru November 2018 of 12,111 bbls of oil and 227,927 mcf of gas. During that period oil averaged about $65/bbl and gas averaged about $2.75/mcf. A quick estimate of income would of course, be your mineral acres divided by 640 X your royalty interest x production. Production costs would be anyones guess. Jones is scheduled to file bankruptcy on this April 15th so good luck getting your division orders.
Thank you Wallace for the update. I am in Section 31. Jones drilled 2 wells, one into section 30 and section 6 below 31. We receive only 30% of the production from each. You receive 60%. I understand that they usually complete a Chapter 11 in 2 months. Let’s hope we can start seeing something soon. They still will owe us the 12% interest on the money owed.
They are required to continue to pay royalties during a bankruptcy.
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Jones energy announced May 6, 2019 that restructuring of the company is complete and will be finalized May 17, 2019. As royalty owners in the Gadwall well in Canadian county of which we have received no division orders or income since the well went on line in June of 2018,we were looking for a request for claims against the company but never received any. Should we have obtained legal help or have our claims now been put in jeopardy. Does anyone have an opinion?
Royalty owners have first rights in a bankruptcy. They rely on the royalties to keep the company going. Usually, you do not have to do anything. The bankruptcy may have slowed down their processing of Division Orders. Contact them by certified return receipt mail and ask the status.
They are going through the process to drill more wells. Would that have any baring on the checks?
Probably not. They would want the royalty from the first wells to pay for the next wells.
Division orders are coming out now. They are wrong currently. They probably be sending changes out with a revision. I believed they reversed the % in each section. They did this in section 31 and 6 . They sent out a change.
Good news, John even with error. If you are interested in pursuing it there is an article on the internet titled " Calculating statutory interest in Oklahoma " which entitles us to 12% interest on all unpaid income from the wells earned after six months after the first sale of oil and gas which was in June of 2018. Jones will probably fight it and it may not be worth messing with. Thanks for the info on the division orders.
We had a similar situation with Jones. When the interest wasn’t paid on the first check, I called them and was told the interest is usually on the 2nd check. Sure enough, it was on one well and the next month on the other.