Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 3, 2019 at 6:51

Since the two wells below were turned to sales on 3/7/19, I'd say this well was shut in during the completion operations for the two new wells.  That's SOP.

251273	HA RA SU60;FALLON 31-6 HC	001-ALT	1464	C3020	16			19405	1			31
251274	HA RA SU60;FALLON 31-6 HC	002-ALT	1464	C3020	16			19385	1			31

• ▶ Reply

Permalink Reply by David on April 3, 2019 at 7:12

Thanks, Skip. Is it reasonable to assume that we may share in the production revenue?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on April 3, 2019 at 7:20

If you have a mineral interest in either of the sections, you will receive your proportional share of well production based upon the linear feet of perforated lateral that lies in each unit.

• ▶ Reply

Permalink Reply by David on June 13, 2019 at 8:44

Skip,

Covey Park recently cut us our monthly check, but I cannot get the numbers to match SONRIS and CP can't explain why.

http://sonlite.dnr.state.la.us/sundown/cart_prod/cart_con_wellinfo2...

From my check stub:

12850013 03/19 G

TUCKER 31-6 HC 1 ALT 142,865.13 (Volume of natural gas)

From SONRIS (bolded numbers at top and bottom)​

RPT DATE	LUW CODE	STORAGE FAC	DOC USE	WELL CNT	OPENING STK	OIL PROD(BBL)	GAS PROD(MCF)			PARISH
04/01/2019	617150			1	0	0	106,121	0	0	DE SOTO
03/01/2019	617150			1	0	0	106,510	0	0	DE SOTO
										DE SOTO
04/01/2019	616372			5	0	0	1,007,037	0	0	DE SOTO
03/01/2019	616372			5	0	0	860,851	0	0	DE SOTO

The response I got from CP was:

"We’ve been audited by the Louisiana Dept of Revenue and they couldn’t show me how to prove what a certain well produced.

The only ones you can verify are ones where it’s a well that’s not a cross section and it’s the only well in that LUW."

Here is what I had written to CP:

"Brian, thanks for the reply, but if I were to look at the production on SONRIS, how would I know the percentage that would be credited to my account on the Tucker 31-6? IOW, if I see a production number on SONRIS, how would I estimate the volume which would be credited to my ownership?"

Any suggestions on how to approach this?

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on June 13, 2019 at 8:59

David, go the SONRIS well file, click on the Well Serial Number in blue, on the list of filed reports go down to number 7 in the Document column.  Page three will be the Perf report where the operator states the percentage of the cross unit lateral that lies in each unit for that particular well.  The percentage is used to allocate monthly production volumes for the purpose of paying royalty. 

This still does not overcome the problem of the state regs for reporting allowing operators to report the monthly unit total instead of the per well volumes.  The more unconventional development evolves, the less applicable the rules and regs are.  The state will never catch up.  You can subscribe to certain pay per data sources that would provide per well monthly production volumes that come from the well operator, not the state, but they are not cheap.

• ▶ Reply