Does anyone know what the status is in Stephens county 7-1n-5w with the drilling?
The Harmeyer 1-7-6XHW was listed as active on 9/21/23 on the OK Tax site.
https://oktap.tax.ok.gov/oktap/web/_/#1 Type in Harmeyer in the Lease Name box, then hit Search. Hit the blue PUN number and you will find the active date. Production numbers are usually four or five months late. Payments are due in March. You should get a division order sometime in February. You do not have to sign it in OK, but see my post on what you can do instead. Search “letter in lieu” in the topics.
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Hello, has anyone received any payments on this Harmeyer well ?
It takes about five months to get all of the hundreds of titles run and the Division Orders out. First royalty payments are usually about six months after first sales. Probably January or February before they show up on a check.
Ok thank you, do they typically send check quarterly or monthly? We are very new to this and not sure how this all works. Is this well expected to be a long producing well? I understand it depends on oil price and other factors but we have a couple others that they only run a few months a year just to maintain their lease.
The first check that you get will be the largest since it is for six months of production. The others will be monthly. I recommend that you not spend it all. That amount could put you into a new tax category. We usually set aside 50% of the first year’s production into a savings account where we won’t touch it. Use it to pay next year’s quarterly taxes. The IRS will want payments based upon this year’s income, but the wells decline in volume naturally and the income is not usually as good the second year, so you don’t want to get in a bind with owing the IRS. We put aside 10% for charity as a thank you for our blessings. We put aside the other 40% for important things such as health, education, welfare, investments, etc. Do not assume that the revenue will stay they same. It will decrease over time.
Your payments will depend upon how many acres you have, the lease clauses, the royalty you chose and the percentage of perforations in your section. You will get a DO which will give that decimal percent. You do not have to sign a DO in OK to get paid. I prefer to use a Letter In Lieu of DO. See my topic thread on that item. Protects my rights better. They really want your W-9, so that is the important document they need. I send back my letter and set my minimum payment at $25. That way checks will come more often in the out years. This well may produce for decades. And there may be more infill wells over the years so think longer and larger in timing. The well is a good one at estimated recoverable of 6.5 BCF
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Thank you so much your very helpful and knowledgeable!!!
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