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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 17 hours ago

Adamas acquired a lot of producing wells/units in multiple states when they bought Aethon.  The largest department for O&G operators is accounting.  In past sales of this size there have been delays in paying royalty.  Royalty payments usually pick back up in a few months.  I  would expect that they would resume by June or July.  Just be patient.

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landownerPermalink Reply by Mike Wilson 1 hour ago

We got our Adamas direct deposit check on time or even a day or two early at the end of May.

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 1 hour ago

Thanks, Mike.  Did that deposit include a new well or wells?  I think we are specifically discussing payment on new wells but Bill can correct me if I am mistaken.  New wells often take a few months to appear on statements.  Older wells should appear each month unless they have been shut in.

Some years ago we went through a period of several months where there were corrections to the payment decimals on HC wells reported by members.  That was when the state first allowed those long lateral, multi unit wells to be drilled.  The problem appeared to be faulty division orders and payment decimals.  Drilling longer wells under those problem division orders and royalty payment decimals were, I think, an issue with accounting and legal.  A number of HA operators made changes to ensure that payments on those HC wells were correct growing forward.  I do not recall if Aethon was one of those HA operators I refer to.

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landownerPermalink Reply by Mike Wilson 35 minutes ago

No, it is an existing well. 

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 22 minutes ago

Thanks.  I thought that might be the case.

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