Continuing the discussion from Canadian County 20-11N-5W:
Trying to copy and paste a paper I have on these properties and wanted you to help me understand what they are. They show the Mbo on all. They spud their well on March 8 and this document is stamped March 26. Unable to attach. It calculated original oil and gas in place etc. it breaks it down by section. Does this give me a figure that should be coming out of the ground per day? I can send email but can not attach.
John- No, that means oil in place in the unit that is producible. Ultimate recovery. Take that (those) numbers with a grain of salt. Typically, only mathematical calculations.
Todd M. Baker Tarpon Jumper, LLC
Thank you Todd, At first Ithought it was barrels per day but saw the date a also the Mbo. Very disappointed. It has been 5.5 to 6 months since spud dates on both. Should we be hearing something soon? The W9 should be coming so ?
John, It generally takes about four-five months to drill and complete a two section well. If there are multiple wells, then a bit longer. The division orders come out about five months after first sales. They are required by statute to pay you six months after first production or they owe you 12% interest if you title is clear. 6% if they have to work on it more.
What is the number at the top of that document? It should be a case number that starts with 2018 or 2018?
I see that the production report has come out showing 300 plus on both wells. Remington and Gadwall. It is over 6 months from start producing dates. Have not seen a 1099 or any communication from Jones Energy. Wonder when we will see anything. They are still trying to get 2 more wells through the courts. They can’t be holding Royalties due to the other Wells they haven’t started yet, could they?
They may not have the splits ready for the Remington and Gadwall wells. 31-13N-5W and 6-11N-5W. They have two other wells drilled from the same pad going north. That can slow things down a bit. You will get interest if they are late.
Don’t wait for Jones Energy to contact you through the mail. You could wait months. Even if you know they have your correct address, they may act like they don’t. I had to call their Division Order Department and ask for the paperwork. They were able to email me the forms and I sent back to them. They don’t cut checks till the last week of the month.
As M_Barnes says, they will owe you interest for any month they haven’t paid within six months. You may have to ask for it though. Many companies will not automatically send it. In your request, you might want to cite the Oklahoma statute. I believe it’s 52 OK Stat § 52-570.10 (2014).
Thanks for the info. I will watch for the interest they will owe. I haven’t even been contacted for a 1099. Sounds like they might be waiting for the other wells.
You think they have started the other 2 wells? I am still getting info from attorneys waiting on the courts. One has a hearing on the 14 of Jan. Do you have records that they are drilling? That would be awesome news.
Typo in there 31-12N-5W. The Remington wells go south from 31 into 6-11N-5W. The Gadwall wells go north from 31 into 30. Remington 31-6-12-5 2HX has finished. (note the 31 and 6 in the name). The 1HX has not spud. Estimated percentages are 66% to section 6 and 34% to section 31. The proposed re-open date for the finals was supposed to be December 2018. I do not see a new final order yet.
Gadwall 31-30-12-5 1HX goes north and has finished (note the 31 and 30 in the name). The 2HX has not spud. Estimated percentages are 67% to 30 and 33% to section 31. I do not see a final order yet. They cannot issue the Division orders until the percentages are reported to the OCC and the order is signed. So I wouldn’t waste my time bugging them for another month. I would rather get the interest anyway.
You will not get 1099s for a year in which you have not been paid, so don’t expect one for 2018. The Division Order will come first. Since they are dealing with three sections here, they have hundreds of owners for each section and that will take a while to get the title straight for everyone.