It’s getting more clear. I found the pooling allocation and order in the case file you provided for me. Using the formula am I using the acreage of my section, 21 (640 acres) or the total acreage of the Sycamore (1040 acres)? Sycamore pays out 45%. You are spot on about the highest bonus and lowest royalty. I’ll throw it out there…I have 6.5 acres so I would do the math, 6.5/640 x .125 x .45 = .00057129. Worst case it’s 6.5/1040 x .125 x .45 = .00035156.
In the order there is a bunch of legal speak about what happens if you fail to elect in the timeframe provided. I plan to contact the person listed on the order to seek some advice, but being that he works for Continental I may not be given the best? We did hire an attorney in the past to navigate a lease of some Garvin County rights…would it be wise to seek him out again? We also hired a land service company during that time and I have a wide range of documents, probates, titles, etc… I have documentation that clears the title up to my mother, so that is good. I’m not sure she ever titled it to me, but we’ve had discussions about this mineral interest and I do not foresee a conflict. The last question I need answered is regarding where bonus and royalty payments will be directed. The old well operated by Jimmy Chatham had payments coming to me. Would Continental continue the process automatically or do I need to do some more work?
Again, Martha, Richard, Todd…thanks so much for your help. You are wonderful people!
Actually, you may have confused the language of the pooling a bit. They have several planned horizons with percentages for the payout of the pooling bonus. That is the 45% for the Sycamore.
When you do the equation, it will be on the percentages of perforations of the well bore and the spacing. If they drill the Sycamore and it is spaced at 1040, then it would be 6.5/1040 x .125 x 1.0 since the whole well bore is included. Other horizons will have their own spacings. The division order will explain the equation it uses.
Typically, an operator will drill the deeper horizon first to hold the leases from below the surface to the deeper zone and to the center of the earth or whatever depth clauses are in the lease. The second well may be shallower since the lease will be held by production. The Woodford is spaced at 1280 per spacing order 718358. So you might have a first well at 1280 spacing in the Woodford and a second well at 1040 if in the Sycamore or 1280 if Woodford. Just have to wait and see what the completion document says.
If you are getting checks from Continental on the shallow wells and they are in your name, they will just add the new well to your statement and check. Be aware that the first payment of a new well is usually for four-six months so the biggest one. The remainder will be a monthly size.
My last check was received in August 2020 from VITOL c/o Iberia Management Systems. The checks were paying on Property 63754H. There is a phone number on the check…would they be of any help?
You could call them and see what well it was.
If you have no checks from Continental, then you and your mom need to get the title figured out so you are ready to get the checks from Continental on the new wells.
Never sell your minerals. My Dad sold his to his sister in the 1960’s. My cousin is doing well, enjoying royalties, and I got nothing. Someone in your family will be glad you kept them…
This is very true. Do not sell your minerals. Figure out another way to get cash. It’s a legacy for your children or nieces or nephews. If my grandmother or dad had sold theirs, I would not have what I have today and intend to pass on to our son and grandchildren.
At one point, my father and our family did sell some of our minerals and I wish we had never done it.
Not only has that mineral acreage been one of the best producing that Continental and Gulfport has brought in, but we probably made no profit on it after taxes and the loss of production income even though we were paid $30K/acre.
A month has passed and I’m still holding. Does anyone have any insight into the performance of Bowery or are we in the dark until production numbers become available? Thanks in advance from Syracuse, NY.
Patience is the key. They will post the production in due time. I just checked the Gross Production site and it says it is down. You can check again in a few days. They had a big winter storm last week. Not sure if that has anything to do with it.